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What: Shares of Rovi (NASDAQ:ROVI) jumped today by as much as 14% today after the company posted better-than-expected earnings results.
So what: Revenue in the third quarter came out to $169.6 million, which resulted in non-GAAP net income of $51.5 million, or $0.50 per share. That bottom-line profit was solidly ahead of the $0.38 per share adjusted profit that analysts were predicting, while the top line also beat.
Now what: The company continues to make progress on reducing costs, eliminating nearly $31 million in annualized costs this quarter. Rovi also dropped planned spending of $5 million, freeing up capital to invest in more pertinent strategic initiatives. Rovi also repurchased about 6 million shares during the quarter for approximately $90 million, leaving $223 million remaining in its existing repurchase authorization. Full-year revenue is predicted between $660 million and $670 million.
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Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.