Gemstar Gets Lift From One-Time Gain
Gemstar-TV Guide International Inc. reported higher net income in the fourth quarter because of a one-time gain, but losses widened on an operating basis as the company shed unprofitable businesses.
The company, which publishes TV Guide magazine, reported net income of $12.7 million, or 3 cents a share, in the quarter ended Dec. 31, compared with $1.6 million, or break-even, in the same period in 2004.
Revenue fell to $129.4 million, compared with $164.8 million a year earlier.
Excluding one-time gains, including the sale of its SkyMall catalog business, the company said its loss from continuing operations was $16.8 million, or 4 cents a share, compared with a loss of $3.8 million, or 1 cent, a year earlier.
Analysts surveyed by Thomson Financial had been expecting a loss of 5 cents a share.
The company is in the midst of reorganizing its business. It shuttered the money-losing Inside TV magazine last year and relaunched its flagship TV Guide magazine in a larger format.
The company also is investing in new original programming for its TV Guide cable channel, which is seen alongside its scrolling program listings on many cable and satellite TV platforms.
Gemstar-TV Guide shares closed at $3.06, down 3 cents, before the earnings were released. In after-hours trading, the shares lost a penny.
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