Shawshank, VA 7/18/12 (StreetBeat) – Rovi Corp (Nasdaq: ROVI) has released a bleak forecast for the year ahead. The company estimates 2Q results below analyst expectations and its cut forecast comes form an anticipated weakening of sales in its consumer electronics division. Two brokerages have downgraded its stock as a result, and Rovi shares have, consequently, slumped 35% today. Rovi’s shares were down $6.10 at $11.50, making them the top percentage loser on the Nasdaq Wednesday morning.
Electronics Manufacturers such as Apple Inc and Sony Corp use Rovi’s software to play various digital media formats on home entertainment devices. Rovi has been affected by the weakening demand for devices that use its technology and a slow pace of license renewals and sales.
"Rovi has not executed effectively recently and is now, in our view, facing uncertainty surrounding the timing of new license agreements as well as weakness in its underlying market," BMO Capital Markets analyst Edward Williams wrote in a note to clients.
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