Rovi Corp. (ROVI) Guides FY15 EPS Below Expectations

Rovi Corp. (NASDAQ: ROVI)

On January 7, 2015, at an investor presentation in Las Vegas, Nevada, Rovi Corporation (the “Company”) will present a corporate overview and financial update, which presentation includes an update to the Company's previously-disclosed financial estimates for 2014, the Company's financial estimates for 2015 and certain additional information. The presentation was announced by a widely disseminated press release and will be made available to the public via webcast, and the slides that accompany the presentation will be available to the public at the time of the webcast through the Company's website.

Rovi now estimates that fiscal year 2014 revenue will be between $538 million and $542 million, Adjusted EBITDA will be between $228 million and $232 million and Non-GAAP EPS will be between $1.69 and $1.73. Rovi estimates Q4 2014 revenue of between $130 million and $134 million and Q4 Non-GAAP EPS of between $0.39 and $0.43. Rovi is in the process of completing its customary year-end audit and expects to report its fourth fiscal quarter and full fiscal year 2014 results in February 2015.

*** The Street sees FY14 revs of $539.7 million and EPS of $1.71. Consensus estimates are also at Q4 revs of $132.1 million and EPS of $0.41.

During the presentation, the Company will present 2015 estimates of $535 million to $565 million in revenue, $205 million to $235 million in Adjusted EBITDA and $1.55 to $1.85 in Non-GAAP EPS. The Company will present the 2014 and 2015 estimates by sales vertical, segment and by strategic area of focus.

*** The Street sees FY15 revs of $555.3 million and EPS of $1.87.

During the presentation, the Company will also present information about revenue from its IP Licensing business, including that the Company had IP Licensing revenue of $293 million in 2013. The Company will also present that based on the applicable midpoints, the Company estimates it will have IP Licensing revenue of approximately $285 million in 2014 and approximately $299 million in 2015. Additionally, the Company will present that at the midpoint of the Company's estimates for 2014 and 2015, the Company estimates IP Licensing Non-GAAP Total COGS and OpEx excluding depreciation will be approximately $60 million in 2014 and $66 million in 2015.

During the presentation, the Company will also present information about revenue from its Product business, including that the Company had Product revenue of $244 million in 2013. The Company will also present that based on the applicable midpoints, the Company estimates it will have Product revenue of approximately $255 million in 2014 and approximately $251 million in 2015. Additionally, the Company will present that at the midpoint of the Company's estimates for 2014 and 2015, the Company estimates Product Non-GAAP Total COGS and OpEx excluding depreciation will be approximately $198 million in 2014 and $210 million in 2015.

During the presentation, the Company will also present estimates for cost structure (the combination of Non-GAAP cost of goods sold (“COGS”) and Non-GAAP total operating costs (“OpEx”)) for 2014 and 2015. In the presentation, based upon the Non-GAAP EPS midpoints, the Company estimates 2014 Non-GAAP COGS will be approximately $97 million and 2014 Non-GAAP OpEx will be approximately $230.5 million (for a total of approximately $327.5 million) and 2015 Non-GAAP COGS will be approximately $103 million and 2015 Non-GAAP OpEx will be approximately $246.5 million (for a total of approximately $349.5 million). During the presentation, the Company will also present information that it repurchased a total of 8.3 million shares of its common stock during 2014. The Company will also provide information on management of its capital structure, including that it estimates it will repurchase 5 million shares of its common stock in 2015

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