Stock Plunges for TVG's Parent Company
Updated: Tuesday, March 19, 2002 3:10 PM
Posted: Tuesday, March 19, 2002 11:01 AM
Gemstar-TV Guide stock plummeted Tuesday morning on the heels of poor fourth quarter and year-end results. As of 3 p.m., the parent company of the TV Games horse racing network was down $4.21 to $17.52, a drop of 19.4%.
The market apparently is reacting to fourth quarter results that came out after the market closed Monday. Gemstar-TV Guide (Nasdaq:GMST) reported a net loss of $210.2 million or 51 cents a share for the three months ending Dec. 31 compared to same quarter of 2000 when the company reported a net loss of $126.2 million or 31 cents per share.
For the year, Gemstar-TV Guide reported an increase in net loss to $599.6 million or 1.45 per share from a loss of $185.8 million or 61 cents per share for 2000.
The company's media and services sector, which includes TVG, reported an 18.3% drop in revenue to nearly $230 million for the fourth quarter and a 15% drop in revenue to $965.8 million for the year.
Along with the bad financial news, Gemstar-TV Guide announced the resignation of Peter Boylan, co-president and co-chief financial officer. His resignation is effective April 1.
Boylan will remain associated with the company as a consultant. He said he is stepping down to spend more time with his family and "embark on new challenges" in his career.
More than $271 million and more than 15 million shares had been traded on Gemstar-TV Guide as of 3 p.m., making it one of the top three most active falling stocks on the Nasdaq market. During the day's trading, the has fallen as low as $17. The company's 52-week range is $15.60 to $49.95. Gemstar-TV Guide hit its 52-week high on July 17 of last year and the price has fallen steadily since. The 52-week low was reached Feb. 5.
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