Rovi Q4 Results Top Estimates, Guides 2014 In Line

(RTTNews) - Digital entertainment technology solutions provider Rovi Corp. (ROVI) reported a loss for the fourth quarter compared to a profit last year, reflecting loss from discontinued operations and income tax expenses.

However, both adjusted earnings per share from continuing operations and quarterly revenue topped analysts' expectations. The company also provide earnings and revenue forecast for the full-year 2014, in line with Street view.

The company noted that the results reflect the reclassification of the DivX and MainConcept businesses, which it has put up for sale, as discontinued operations.

"We are proud of our accomplishments in the fourth quarter. While 2013 was a challenging transitional year, as we refocused the Company around our core guidance and discovery roots, we ended the year with a strong fourth quarter featuring several key new agreements and renewals," President and CEO Tom Carson said in a statement.

The Santa Clara, California-based company reported a net loss of $60.81 million or $0.62 per share for the fourth quarter, compared to net income of $2.14 million or $0.02 per share in the prior-year quarter.

Income from continuing operations for the quarter surged to $10.25 million or $0.10 per share from $3.41 million or $0.03 per share last year.

Excluding one-time items, adjusted pro forma income from continuing operations for the quarter was $54.88 million or $0.56 per share, compared to $39.81 million or $0.40 per share in the year-ago quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 14.9 percent to $152.36 million from $132.61 million in the same quarter last year, and topped eleven Wall Street analysts' consensus estimate of $150.40 million. The company attributed that revenue growth new licensing agreements.

"We signed new IP agreements with Google and Samsung, both of which expand the scope of rights they are licensing from Rovi. We also renewed several key contracts, including two agreements that were renewed in advance of their 2014 expirations," Carson added.

The company recorded an income tax expense of $14.72 million, compared to an income tax benefit of $2.30 million last year.

For fiscal 2013, the company reported a net loss of $172.09 million or $1.74 per share, sharply wider than $34.34 million or $0.33 per share in the prior year.

Income from continuing operations for the year was $20.36 million or $0.21 per share, compared to a loss of $20.63 million or $0.20 per share last year.

Excluding one-time items, adjusted pro forma income from continuing operations for the year was $166.53 million or $1.68 per share, compared to $156.39 million or $1.49 per share in the year ago.

Revenues for the full year increased to $538.07 million from $526.09 million in the previous year.

Analysts expected the company to report full-year 2013 earnings of $1.67 per share on annual revenues of $536.32 million.

Looking ahead to fiscal 2014, the company expects adjusted pro-forma earnings in a range of $1.55 to $1.85 per share, on projected revenues between $510 million and $550 million. Street is currently looking for full-year 2014 earnings of $1.73 per share on annual revenues of $532.63 million.

ROVI closed Wednesday's regular trading session at $22.31, down $0.31 or 1.37% on a volume of 1.14 million shares. However, the stock gained $0.18 or 0.81% in after-hours trading.