Earnings: Macrovision Solutions Q1 Revs Down 12 Percent; Sees $50 Million Merger Savings In '08
This story was written by Joseph Weisenthal.
For its last full quarter without Gemstar, Macrovision (NSDQ: MVSN) Solutions (new name) had revenue of $32.2 million, a 12 percent decline from $36.6 million in the year-ago quarter. Net income slipped to $7.3 million ($.13 per share) from $7.6 million ($.14 per share). The company attributed the decline to ongoing weakness in its "legacy" analog solutions business, but it claimed strong growth in digital solutions, and it sees $50 million in cost savings by the end of the year from the just-closed Gemstar buynote that when the deal was first announced, one of the major problems was that the deal didn't seem to be about cost savings, but rather strategic synergies. Now they're talking cost savings. Conversely to get these $50 million in cost savings, they'll need to spend $31 million in restructuring.
Had the acquisition closed on January 1, combined quarterly revenue would have been $151.7 million. For the full year, the company expects combined revenue of $650-$700 million.
Release | Webcast (5:00 PM ET)
By Joseph Weisenthal