Gemstar-TVGuide Beats Expectations

Gemstar-TV Guide International Inc. of Pasadena, the leading provider of electronic TV program guides, reported a larger net loss but still beat analysts’ expectations on revenue and cash flow. The third-quarter loss of $131 million--up from $116 million during the same period last year--stems mainly from depreciation and amortization costs associated with Gemstar’s acquisitions. Excluding those costs and nonrecurring expenses, the company’s earnings rose 20% to $110.7 million, or 32 cents a share.

Analyst John Corcoran of CIBC World Markets, a New York investment bank, said Gemstar showed healthy growth in two important areas: interactive software and licensing. In a tough economy for technology companies, Corcoran said, “they put up three very good quarters.” Gemstar shares rose $1.69, or 7.5%, to close at $24.10 on Nasdaq, but they remained far below their peak of $59.56 in late January. Media conglomerate News Corp. holds 40% of the company’s stock.