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Gemstar-TV Guide Q2 Revenue Down 24%

9/26/2002 09:46:00 AM Eastern

Pasadena, Calif. - Interactive TV program guide Gemstar-TV Guide International recorded a 24 percent drop in revenue for its technology and licensing sector in the second quarter, hitting $51.4 million, down from $67.6 million in the year-ago period.

The company included a $119 million provision for bad debt in the second three months.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the sector quarter dropped to a negative $83.6 million, compared with positive EBITDA of $45.6 million in the same quarter last year.

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

Consolidated revenue for the second quarter reached $271.7 million, compared with $320.5 million in the same period in 2001. EBITDA was a negative $54.2 million for the second quarter, down from a positive $108 million in the same three months a year ago.

Net loss reached $953.8 million for the three months, compared with a net loss of $134.8 million year over year. In the quarter, the company recognized an impairment loss of $1.26 million, mostly relating to the write-down of a long-lived asset associated with the acquisition of TV Guide.

Gemstar-TV Guide earlier had been notified by the Nasdaq Stock Market that its securities are subject to de-listing because of late second quarter financial filing. A hearing was held late in September.