OpenTV Beats Nos., But Revenue Down

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Interactive-TV-software provider OpenTV Corp. beat its own projected net
deficit for the first quarter, but it also saw a revenue decline.

Despite rising revenue from its applications business, the Mountain View,
Calif.-based company posted a pro forma net loss of $9.4 million for the period,
or 13 cents per share, narrowing its $12 million loss posted in first-quarter
2001.

Meanwhile, it generated $20.2 million in revenues compared with $22.4 million
posted for the same period in 2001.

That decrease came even though the company's applications platform pulled in
four times the revenue compared with the prior-year period, generating $4.5
million versus just $1 million a year ago.

The company said the overall revenue decline was partially due to shifts in
royalty payments via volume discounts and a slight drop in license-fee
revenue.

The results also include a $9.6 million restructuring charge as OpenTV cut
its work force, closed several offices and wrote off various fixed assets and
lease costs. But it did manage to trim pro forma operating expense for the
quarter to $31.2 million compared with the $38.1 million posted for the same
quarter in 2001.

Bright spots in the quarter included deployments to more than 2 million
customers, bringing OpenTV's total to more than 23.5 million
worldwide.

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