A sharp quarter-over-quarter revenue drop and little hope for improvement in
the second half caused OpenTV to announce 'a series of aggressive cost-cutting
measures' to the tune of $20 million in its earnings call Aug. 8.
OpenTV chief executive officer James Ackerman said those cuts would be
detailed later in the third quarter, as the company announced second quarter
revenue was $14.2 million a 38 percent drop from the year earlier period's $22.8
The company's pro forma net loss was $16.4 million in second quarter 2002,
versus a $4.1 million loss a year earlier.
Ackerman said the revenue drop, from new launches being delayed and European
customers restrucuring, is a short-term phenomenon.
Still, he said, 'In light of the current business climate, we do not expect
to see revenue growth in the second half of this year as we previously
anticipated. As a result, we believe it is unlikely the Company will achieve
pro-forma profitability in the fourth quarter of 2002.'
The company its software is now deployed in 27 million set-tops
It also said it had OpenTV had cash, cash equivalents and marketable debt
securities of $166.4 million compared to $189.5 million as of Dec. 31, 2001.
Ackerman said OpenTV continues its strategy shift to boosting recurring