Gemstar-TV Guide International
, the company that markets an onscreen programming guide for advanced-technology television systems, got tripped up by old media in its latest quarter.
The company's CEO on Wednesday also defended an accounting practice that sent Gemstar's shares spiraling in early April.
For the first quarter ended March 31, Gemstar recorded revenue of $296.6 million, down from $342.2 million one year earlier. Analysts surveyed by Thomson Financial/First Call had forecast $300 million in revenue.
Earnings before interest, taxes, depreciation and amortization -- a common bottom-line yardstick for media companies -- amounted to $102.1 million, or 23 cents a share, down from $120 million, or 26 cents a share, in the corresponding quarter of 2001.
Most of the revenue decline took place in the company's media and services sector, including
, hit by a weak advertising market, and Superstar/Netlink, which operates in the vestigial large-dish home satellite market.
On a conference call with analysts after the market's close Wednesday, Gemstar CEO Henry Yuen lashed out at Wall Street critics who suggested it was a form of gambling for the company to recognize licensing revenue from
when it wasn't paying license fees to Gemstar and the two companies were involved in litigation over relevant intellectual property.
The S-A revenue Gemstar continues to recognize -- $5.8 million in the first quarter -- passes a four-part Financial Accounting Standards Board (FASB) test for whether recognition is appropriate, Yuen said. "These accusations of our not applying the correct accounting standards are therefore totally unfounded," he said.
Gemstar, down from a 52-week high of $49.95, rose 32 cents in daytime trading to close at $9.74. Following the release of financials, the stock fell to $9 in after-hours trading.