Rovi Corp

CIK:0001424454|SEC Filings

Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenues	$ 125,245	$ 127,820	$ 243,629	$ 261,845
Costs and expenses:
Cost of revenues, excluding amortization of intangible assets	24,965	25,669	47,502	53,799
Research and development	24,184	25,733	46,853	52,270
Selling, general and administrative	42,563	40,778	78,645	80,726
Depreciation	4,325	4,448	8,559	8,818
Amortization of intangible assets	19,030	19,236	38,162	38,600
Restructuring and asset impairment charges (benefits)	0	(178)	2,333	1,539
Total costs and expenses	115,067	115,686	222,054	235,752
Operating income	10,178	12,134	21,575	26,093
Interest expense	(10,859)	(11,715)	(21,390)	(24,073)
Interest income and other, net	(14)	(183)	(31)	503
(Loss) income on interest rate swaps	(5,507)	4,399	(18,594)	(5,319)
Loss on debt extinguishment	0	(20)	0	(120)
(Loss) income before income taxes	(6,202)	4,615	(18,440)	(2,916)
Income tax expense	3,206	1,277	8,620	9,216
Net (loss) income	$ (9,408)	$ 3,338	$ (27,060)	$ (12,132)
Basic (loss) earnings per share (in dollars per share)	$ (0.11)	$ 0.04	$ (0.33)	$ (0.14)
Weighted average shares used in computing basic (loss) earnings per share (in shares)	82,110	85,248	81,742	86,767
Diluted (loss) per share (in dollars per share)	$ (0.11)	$ 0.04	$ (0.33)	$ (0.14)
Weighted average shares used in computing diluted (loss) earnings per share (in shares)	82,110	85,487	81,742	86,767

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (27,060)	$ (12,132)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	8,559	8,818
Amortization of intangible assets	38,162	38,600
Amortization of convertible note discount and note issuance costs	6,935	6,986
Asset impairment charge	452	0
Change in fair value of interest rate swaps	13,969	3,461
Equity-based compensation	18,355	22,716
Deferred income taxes	777	3,747
Other operating, net	2,958	3,001
Changes in operating assets and liabilities:
Accounts receivable	(843)	(747)
Prepaid expenses and other current assets and other long-term assets	(10,377)	(1,544)
Accounts payable and accrued expenses and other long-term liabilities	(2,928)	(7,334)
Accrued income taxes	(2,919)	(380)
Deferred revenue	(56)	556
Net cash provided by operating activities of continuing operations	45,984	65,748
Net cash used in operating activities of discontinued operations	0	(194)
Net cash provided by operating activities	45,984	65,554
Cash flows provided by investing activities:
Payments for purchase of short- and long-term marketable securities	(59,857)	(134,396)
Proceeds from sales or maturities of short- and long-term marketable securities	79,507	182,376
Payments for purchase of property and equipment	(13,795)	(5,536)
Payments for purchase of patents	(2,500)	0
Other investing, net	(46)	(53)
Net cash provided by investing activities	3,309	42,391
Cash flows used in financing activities:
Proceeds from revolving credit facility	0	100,000
Payments on revolving credit facility	0	(100,000)
Proceeds from issuance of long-term debt, net of issuance costs	0	335,616
Principal payments on long-term debt	(3,500)	(344,490)
Proceeds from sale of warrants	0	31,326
Payments for purchase of call options	0	(64,825)
Payments for deferred holdback and contingent consideration	(750)	(5,140)
Payments for purchase of treasury stock	0	(104,519)
Payments for withholding taxes related to net settlement of restricted stock units	(4,042)	0
Proceeds from exercise of options and employee stock purchase plan	7,329	5,866
Net cash used in financing activities	(963)	(146,166)
Effect of exchange rate changes on cash and cash equivalents	1,269	(407)
Net increase (decrease) in cash and cash equivalents	49,599	(38,628)
Cash and cash equivalents at beginning of period	101,675	154,568
Cash and cash equivalents at end of period	$ 151,274	$ 115,940

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 151,274	$ 101,675
Short-term marketable securities	122,619	107,879
Accounts receivable, net	88,013	87,128
Prepaid expenses and other current assets	25,481	14,191
Total current assets	387,387	310,873
Long-term marketable securities	80,172	114,715
Property and equipment, net	35,211	34,984
Intangible assets, net	351,340	386,742
Goodwill	1,344,425	1,343,652
Other long-term assets	7,371	8,330
Total assets	2,205,906	2,199,296
Current liabilities:
Accounts payable and accrued expenses	64,081	74,113
Deferred revenue	14,997	12,106
Current portion of long-term debt	7,000	7,000
Total current liabilities	86,078	93,219
Taxes payable, less current portion	5,217	5,332
Deferred revenue, less current portion	6,467	9,414
Long-term debt, less current portion	963,829	960,156
Deferred tax liabilities, net	66,899	66,116
Other long-term liabilities	49,325	34,494
Total liabilities	1,177,815	1,168,731
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value, 250,000 shares authorized; 131,888 shares issued and 83,302 shares outstanding as of June 30, 2016; and 131,052 shares issued and 82,647 shares outstanding as of December 31, 2015	132	131
Treasury stock, 48,586 shares and 48,405 shares as of June 30, 2016 and December 31, 2015, respectively, at cost	(1,167,575)	(1,163,533)
Additional paid-in capital	2,445,589	2,419,921
Accumulated other comprehensive loss	(3,544)	(6,503)
Accumulated deficit	(246,511)	(219,451)
Total stockholders’ equity	1,028,091	1,030,565
Total liabilities and stockholders’ equity	$ 2,205,906	$ 2,199,296