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Gemstar-TV Guide


posted huge losses for its fourth quarter and year Tuesday after writing down the $14 billion acquisition of TV Guide it made three years ago. The company also disclosed a number of restatements.

For the fourth quarter ended Dec. 31, the company lost $1.3 billion, or $3.19 a share, including both the goodwill writedown related to the acquisition and charges including $25.9 million for restructuring. Revenue was $244.7 million, down 18% from last year's $298.8 million.

The company had a fourth-quarter loss before interest, taxes, depreciation and amortization of $33.6 million, compared with year-earlier EBITDA of $78.7 million.

Recently, shares were down 9% to $3.35 on the news.

The full year looks worse, with a writedown-related loss of $6.4 billion, or $15.64 a share, compared with a year-earlier loss of $750.7 million, or $1.82 a share. Revenue fell 14% to $1 billion from $1.16 billion.

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Pasadena, Calif.-based Gemstar is the subject of a

Securities and Exchange Commission

investigation regarding its financial statements; it said in a press release Monday that it is current in its filing obligations to the agency. Gemstar also received a delisting notice earlier this month from the


but said it is cooperating with Nasdaq staff.

The mess began last March, when the company's president, Peter Boylan, resigned and Gemstar said it would have to take a writedown of up to $5 billion to amortize goodwill related to the $14 billion purchase of TV Guide in July 2000.

On Monday, the company restated its financial results for the years ended Dec. 31, 2001 and March 31, 2000, and the quarters ended March 31, 2002, June 30, 2002, and September 30, 2002.

The company said: "As a result of the previously disclosed review of its accounting policies and the application of those policies to various types of transactions, and the audit and review completed by the company's new independent accounting firm, Gemstar-TV Guide has included additional restatements in certain of its historical financial statements." For example, Gemstar's earnings for fiscal year 2000 were restated to $63 million, down $18.3 million. For 2001, the loss was restated to $750.7 million, $151.1 million wider than previously reported.