Gemstar reported preliminary 2nd-quarter loss of $953.8 million a...
Gemstar reported preliminary 2nd-quarter loss of $953.8 million after more than $1 billion in asset write-downs as it prepared for Nasdaq delisting hearing. It posted consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) loss of $54.2 million, reversing…
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$108 million profit year ago as revenue slumped to $271.1 million from $320.5 million. Major reason for EBITDA loss was recording of $113.5 million reserve against outstanding receivables from Scientific- Atlanta (SA). Latter had been licensee of Gemstar’s electronic program guide (EPG) technology for cable set-top boxes, but pact expired in late 1990s. Gemstar’s technology and licensing business had EBITDA loss of $83.6 million as revenue fell 24% to $51.4 million. In interactive business, which includes interactive program guide (IPG), Gemstar said it had EBITDA of $2.8 million vs. $455,000 loss year earlier as revenue increased 9% to $22.4 million. Media and services sector dropped $36.2 million in EBITDA to $26.7 million and revenue $34.6 million to $197.8 million. Downturn in EBITDA and revenue was tied to TV Guide Magazine and Superstar/Netlink C-band satellite businesses, Gemstar said. Superstar’s revenue fell to $18.5 million from $56.9 million as subscribers declined 21% from Dec. 31 to 436,000, Gemstar said. TV Guide suffered from decline in newsstand sales as revenue dropped to $101.3 million from $121.1 million year earlier.