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Rovi's (ROVI) CEO Thomas Carson on Q2 2015 Results - Earnings Call Transcript


Good afternoon. My name is Trinicia, and I will be your conference operator today. At this time, I will like to welcome everyone to the Rovi Corporation 2015 second quarter conference call. [Operator Instructions] I would now like to turn today's call over to Mr. Peter Ausnit, Vice President of Investor Relations. Sir, you may begin.

Peter Ausnit - Vice President, Investor Relations

Operator, thank you. Good afternoon, everyone, and thank you for joining our call. I am Peter Ausnit, Rovi's Vice President of Investor Relation. Today I am joined by Tom Carson, our President and CEO; Peter Halt, our Chief Financial Officer; and Samir Armaly, our EVP of Intellectual Property and Licensing. Additionally, we are joined by John Burke, our COO and EVP. John will be available during Q&A.

During this conference call, we will be making forward-looking statements, including statements regarding Rovi's future and its estimates of future revenues, expenses, and earnings, as well as possible outcomes in timing of contract negotiations, litigation, business strategies, deployment plans, and product plans. These forward-looking statements are subject to risks and uncertainties that may cause actual results to vary materially from today's forward-looking statements.

Some of the factors that could cause actual results to differ materially from these forward-looking statements are described in Rovi's Form 10-Q for the quarter ended June 30, 2015, and other SEC reports and filings made from time to time. And we encourage you to review the discussion of these factors in those reports and files. All statements are made as of today, July 30, 2015, based upon information available to us as of today. And except as required by law, we see no obligation to update any such statement.

This presentation includes non-GAAP financial measures. This presentation is not intended to be a substitute for Rovi's financial results presented in conformity with generally accepted accounting principles in the United States. And investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures included in our earnings release.

The most directly comparable GAAP information and reconciliation between non-GAAP and GAAP figures are included in the Q2 2015 earnings press release, which has been furnished to the SEC on Form 8-K and is available on the investor relations section of Rovi's web page, at The live webcast of this conference call is available in the Investor Relations section of Rovi's webpage, and a replay of the audio webcast will be available on the website shortly after this webcast ends, and will remain on the website until our next quarterly earnings call.

Now, I would like to turn the call over to our CFO, Peter Halt.

Peter Halt - Chief Financial Officer

Thank you, Peter. Good afternoon, everyone, and thanks for joining our Q2 earnings call. I'll start with some context on our second quarter, and then I'll briefly cover our revised financial expectations for the rest of the year.

Tom, will then discuss our ongoing progress for the upcoming major license renewals and actions we are taking to drive revenue growth in the second half of 2015. Finally, Samir Armaly, our EVP of Intellectual Property and Licensing, will join us to address the recent Netflix ruling and speak further to the opportunity, the upcoming major license deals represent.

First, a few notes on some of the agreements we signed during the quarter. As a reminder, we signed an important agreement with Charter in Q2, which we believe fairly values our IP portfolio in today's pay-TV marketplace.

Since we announced this renewal, Charter has announced it's acquiring Time Warner Cable and Bright House Communications. If those deals are completed, Charter will become the second-largest cable operator in the United States.