WASHINGTON (dpa-AFX) - Shares of Rovi Corp. (ROVI) skid over 22 percent in expended trading on Tuesday after the digital entertainment technology solutions provider reported net income for the third quarter that plunged from last year, hurt by a restructuring and asset impairment charges and as the year-ago quarter was boosted by significant gains of interest rate swaps and sale of strategic investment.
However, adjusted pro forma earnings per share increased and topped analysts' expectations, while quarterly revenues missed their estimates.
'We are pleased with our progress in 2011 and the continued success across our business,' President and CEO Fred Amoroso said in a statement.
The Santa Clara, California-based company reported net income of $1.8 million or $0.02 per share for the third quarter, sharply lower than $36.4 million or $0.33 per share in the prior-year quarter.
Excluding the one-time items, adjusted pro forma net income for the quarter grew to $70.88 million or $0.63 per share from $59.91 million or $0.53 per share in the year-ago quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.61 per share for the third quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased to $196.49 million from $138.03 million in the same quarter last year, and missed thirteen Wall Street analysts' consensus estimate of $197.94 million by a whisker.
On adjusted basis, revenue grew to $196.49 million from $182.47 million in the third quarter of 2010.
Operating income for the quarter declined to $22.54 million from $31.89 million in the prior-year quarter, while total costs and expenses were $173.96 million, up from $106.14 million in the year-ago quarter.
ROVI closed Tuesday's regular trading session at $46.02, up $0.16 or 0.35 percent on a volume of 2.15 million shares. However, the stock plunged $10.22 or 22.21 percent in after-hours trading.
Copyright RTT News/dpa-AFX
© 2011 AFX News
