Gemstar-TV Guide International (GMST) swung to a third-quarter profit, thanks to improvement at its TVG Network and a significant tax gain.
The company made $51 million, or 12 cents a share, reversing the year-ago loss of $98 million, or 23 cents a share. Revenue fell to $171.6 million from $174 million during the same period the year before. Thomson-surveyed analysts had expected a loss of 5 cents a share on revenue of $172.73 million.
Substantially all of the latest-quarter earnings came from the recognition of a $51.1 million income tax benefit.
"Last month, with the launch of a more compelling and relevant TV Guide magazine, we took a crucial step towards putting that business back on a path to profitability, while further strengthening Gemstar-TV Guide's position as the leader in television guidance," said CEO Rich Battista."In an increasingly complex media environment, we believe that Gemstar-TV Guide can play an even more central role in helping consumers make the most of their television experience through our unmatched editorial access, the most trustworthy programming recommendations, and intuitive technology solutions that enable consumers' viewing choices," continued Battista. In after-market trading Gemstar shares were up 3 cents to $2.65.