Shares of Rovi Corp. (ROVI) slipped more than 6 percent in expended trading on Thursday after the digital entertainment technology solutions provider reported a loss for the first quarter compared to a profit last year, hurt by a charges.
However, adjusted pro forma earnings per share matched analysts' expectations, while adjusted quarterly revenues missed their estimates. The company also provided earnings and revenue guidance for the full-year 2012, in line with Street view.
"I am pleased with the successes achieved across our business in the first quarter. We added and renewed some very important licensing agreements that we believe bode well for Rovi's future," President and CEO Tom Carson said in a statement.
The Santa Clara, California-based company reported a net loss of $4.61 million or $0.04 per share for the first quarter, compared to net income of $17.04 million or $0.15 per share in the prior-year quarter.
Income from continuing operations, excluding the results of the Roxio software business which was sold on February 1, 2012, dropped to $0.01 per share from last year's $0.16 per share.
Excluding one-time items, adjusted pro forma income from continuing operations for the quarter declined to $61.03 million or $0.56 per share from $68.39 million or $0.58 per share in the year-ago quarter.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share for the first quarter. Analysts' estimates typically exclude special items.
Revenues increased to $174.99 million from $152.74 million in the first quarter of 2011.
On adjusted basis, revenue for the quarter declined to $174.99 million from $177.63 million in the same quarter last year, and missed fifteen Wall Street analysts' consensus estimate of $177.62 million by a whisker.
Operating income from continuing operations for the quarter declined to $22.82 million from $23.80 million in the prior-year quarter, while total costs and expenses were $152.17 million, up from $128.94 million in the year-ago quarter.
Looking ahead to the full calendar year 2012, the company expects adjusted Pro Forma income in a range of $2.35 to $2.65 per share, on projected adjusted pro Forma revenues between $755 million and $785 million.
Street is currently looking for full-year 2012 earnings of $2.53 per share on annual revenues of $770.94 million.
ROVI closed Thursday's regular trading session at $28.25, down $0.21 or 0.74% on a volume of 1.61 million shares. The stock lost a further $1.75 or 6.19% in after-hours trading.
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