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Gemstar Q4 Interactive Sector Climbs 19%

3/19/2002 09:17:00 AM Eastern

Pasadena, Calif. - Interactive TV program guide maker Gemstar-TV Guide International reported pro forma revenue of $83.3 million in the fourth quarter for its Technology and Licensing Sector, up 19 percent from $69.8 million in the same three months in 2000, excluding one-time revenue.

Earnings Before Interest, Taxes, Depreciation and Amortization for the sector (EBITDA) reached $59.7 million pro forma in the fourth quarter, ended Dec. 31, up 35 percent from $44.3 million in the year-ago period, excluding one-time revenue.

Gemstar's Technology and Licensing Sector is responsible for developing, licensing and protecting the company's VCR Plus+(R) system, interactive program guide (IPG) products and services marketed under the GUIDE Plus+(R) and TV Guide Interactive brands.

Consolidated revenue for the fourth quarter came in at $346.4 million on a pro forma basis, compared with $358.1 million year over year. EBITDA on a pro forma basis climbed to $118.6 million in the fourth quarter, up from $112.3 million, excluding the amortization of goodwill.

Net loss for the fourth quarter was $210.2 million, up from $126.2 million in the same three months in 2000. This was due primarily to amortization of intangible assets recorded as a part of the acquisition of TV Guide in 2000, and one-time write-offs, said the company.

Gemstar, which said its IPG technology is now available in 15 million homes, will write down in the current quarter as much as $5 billion of the $8.6 billion in goodwill it had on its books as of Jan. 1. This will wipe out more than half of the $9.7 billion in assets the company had as of Dec. 31. Most of the goodwill had come from Gemstar's $14 billion purchase of TV Guide, it said.

For the 12 months, Gemstar's Technology and Licensing Sector had revenue of $327 million, a 30 percent increase, compared with pro forma revenue of $251.8 million in 2000. EBITDA in the sector for the 12 months was $229.2 million, an increase of 42 percent over the $161.3 million recorded on a pro forma basis for the previous 12 months.

Consolidated pro forma revenue for the 12 months was relatively flat, reaching $1.38 billion, compared with $1.41 billion in 2000. Consolidated pro forma EBITDA increased 24 percent, to $449.4 million, up from $362.1 million the previous year. Net loss for the 12 months soared to $600 million, up from $185.8 million year over year.