News

Gemstar Plans Restated Earnings

1/23/2003 11:12 AM Eastern

After a review of its accounting practices, Gemstar-TV Guide International
Inc. is taking the eraser to its past financial statements, eliminating $19
million in previously reported licensing revenues and $8.2 million in
interactive-programming-guide ad revenues.

A lion's share of the canceled licensing revenues came from $18.1 million
from an agreement with AOL Time Warner Inc.

In addition, the Pasadena, Calif.-based provider of IPG software and
home-entertainment systems will reclassify $26.8 million in licensing revenues
as either a reduction of operating expenses or as other income, and another $47
million in reported revenues will instead be recognized over the remaining terms
of the company's licensing agreement. Both changes stemmed from a settlement
agreement with "a certain set-top manufacturer," according to a company
statement.

The changes affected statements for fiscal quarters that ended March 31,
2000; Dec. 31, 2000; Dec. 31, 2001; March 31, 2002; June 30, 2002; and Sept. 30,
2002.

The restatements will not impact Gemstar's cash position for any of those
fiscal periods, according to the company.

Back in November, Gemstar announced that it had hired a new independent
accounting firm to oversee its financial statements and review other financial
documents.

There may also be additional restatements as that process continues, which
"may be material," according to a company statement.

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