I just reread Rovis 3rd quarter financial report and I see why they did this.
I highlighted the important details.
Rovi Corporation Reports Third Quarter Financial Performance
Focus on Operational Improvements Reduces Costs and Company Raises Adjusted Pro Forma Income Per Common Share Estimates for FY 2012
Santa Clara, Calif. - 11/1/2012 - Rovi Corporation (NASDAQ: ROVI) today reported financial results for the third quarter ended September 30, 2012. The Company reported GAAP revenues of $169.6 million, compared to $181.9 million for the third quarter of 2011. GAAP net loss was $13.3 million, compared to GAAP net income of $1.8 million for the third quarter of 2011. The year-over-year decline was primarily due to a reduction in revenues from the Company’s consumer electronics customers.
During the quarter, Rovi took actions that will reduce current operating costs by approximately $31 million on an annual run-rate basis through product rationalization and targeted cost reductions. Largely as a result of these reductions, Non-GAAP Adjusted Pro Forma Income was $51.5 million in the third quarter of 2012 compared to $69.0 million in the third quarter of 2011 and $39.8 million in the second quarter of 2012. Adjusted Pro Forma Income Per Common Share for the third quarter of 2012 was $0.50, compared to $0.62 for the third quarter of 2011 and $0.37 for the second quarter of 2012.
Adjusted Pro Forma Income and Adjusted Pro Forma Income Per Common Share are defined below in the section entitled Non-GAAP or Adjusted Pro Forma Information. Reconciliations between GAAP pro forma and Adjusted Pro Forma results from operations are provided in the tables below.
"Last quarter I spoke about the need to improve execution and operational efficiency, and I am very pleased with the substantial progress we have made along these lines during the past three months," said Tom Carson, President and CEO of Rovi. "After undertaking comprehensive, product-by-product operational reviews across the business, we focused on product rationalization and cost reductions this quarter and eliminated almost $31 million in annualized costs. Additionally, we eliminated plans to add an additional $5 million dollars in annual spending. This frees up funds to invest in new value-creating strategic initiatives and puts us on the path to achieving an operating margin more appropriate for our business. These actions also drove a sequential increase in our quarterly Adjusted Pro Forma Income Per Common Share and allowed us to raise the midpoint of our Adjusted Pro Forma Income Per Common Share estimates for the year."
Rovi repurchased approximately 6 million shares of its common stock during the third quarter for approximately $90 million. The Company now has approximately $223 million remaining in its existing share repurchase authorization.
Rovi now anticipates fiscal year 2012 revenue of between $660 million and $670 million, and Adjusted Pro Forma Income Per Common Share of between $1.80 and $1.90. Rovi will discuss its 2012 outlook in greater detail on the conference call set to take place today, November 1, 2012, starting at 2:00 p.m. PT.
About three weeks ago I just had Rovi update my channel line up and I told them that my cable company is going to add the other 50 HD channels to my line up on the first week of December and they told me to send them the list as soon as my cable company released it so they can update the data base. It appears to me that those who work in the broadcast operations did not know this was going to happen.
It is apparent that this was just a way for corporate to quickly cut costs in order to sure up shareholders confidence. It also appears that there has not been enough of sales for the new Total Guide and also the money for advertising in the guides has fallen off. The sad thing is that there is not enough of customers who have the newer guides so they decide to jetison the established base in order to cut costs. I wonder what gets cut the next time around as this was probably the easiest cut for corporate to make. I am also wondering how many people lost their jobs.
It has been over a day now since I emailed corporate rovi about TVGOS and I have not yet received any reply.