Gemstar Reports Net Loss; TVG Revenue on Rise
Updated: Tuesday, April 1, 2003 9:36 AM
Posted: Tuesday, April 1, 2003 9:36 AM
Gemstar-TV Guide International reported a net loss of $6.23 billion, mainly from write-downs for goodwill, for fiscal year 2002. Meanwhile, the company's interactive platform sector, which includes the TV Games Network, posted revenue gains.
For fiscal year 2001, Gemstar-TV Guide reported net loss of $750.7 million. Revenue for 2002 was $1 billion versus $1.16 billion the previous year.
In March 2002, Gemstar president Peter Boylan resigned and said the company would have to amortize goodwill related to the $14-billion purchase of TV Guide. The company, focus of a U.S. Securities and Exchange Commission investigation, said it would continue to comply.
For the three months that ended Sept. 30, 2002, the company's interactive platform sector had revenue of $11.6 million, up 61% compared with the year-earlier period. The gain was attributed in part to e-commerce revenue from SkyMall and growth in interactive wagering through TVG.
Expenses for the interactive platform sector were $15.9 million for the quarter that ended Sept. 30, 2002, down 31% from the same period in 2001.
In its latest SEC report, Gemstar-TV Guide said its continues to face risks associated with the SEC probe, securities litigation, and the fact its common stock may be delisted by Nasdaq. The company said "continued consolidation of the cable and satellite broadcasting industry could change the terms of existing agreements; the impact of these changes is not certain."
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