Rovi Corp Earnings Cheat Sheet: Revenues Climb 24% As Gross Margins Grow

Rovi Corporation (NASDAQ:ROVI) reported its results for the first quarter. Rovi Corp focuses on powering the discovery and enjoyment of digital entertainment by providing a broad set of integrated solutions.

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Rovi Earnings Cheat Sheet for the First Quarter

Results: Net income for Rovi Corporation fell to $17 million (15 cents/share) vs. $68.1 million (64 cents/share) a year earlier. A decline of 75% from the year earlier quarter.

Revenue: Rose 24.1% to $161.5 million YoY.

Actual vs. Wall St. Expectations: ROVI reported adjusted net income of of 61 cents/share. By that measure, the company beat the mean estimate of 51 cents/share. Estimates ranged from 44 cents per share to 55 cents per share.

Quoting Management: “We are pleased with our fast start to 2011 and the continued progress and success of our business,” said Fred Amoroso, President and CEO of Rovi. “We have made excellent progress on the Sonic integration and are beginning to realize the benefits and synergies that we believe exist in the combination.”

Key Stats: Gross margins grew 16.4 percentage points to 84.4%. The growth appeared to be driven by falling costs, as the figure fell 39.3% from the year earlier while revenue rose 24.1%.

Over the last five quarters, revenue has increased 15.1% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 24.1% from the year earlier quarter.

Competitors to Watch: Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), TiVo Inc. (NASDAQ:TIVO), News Corporation (NASDAQ:NWSA), HSW International, Inc. (NASDAQ:HSWI), Martha Stewart Living Omnimedia, Inc. (NYSE:MSO), Meredith Corporation (NYSE:MDP), PRIMEDIA Inc. (NYSE:PRM), and Barnes & Noble, Inc. (NYSE:BKS)

Stock Performance: Shares of ROVI are up 8.7% after hours to $54 per share following today’s close:


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