2011年8月9日星期二

Alfred Amoroso

Thank you, James. At this point, I'll review the quarter and some recent business highlights. In CE, we continue to benefit from the digital TV upgrade cycle, as volumes rise fueled by reduced prices and increased functionality, most notably connectivity. Our strategy to take advantage of this connected trend over the long-term is of course through our TotalGuide embedded solution and Rovi Cloud Services, which includes our advertising, metadata and search recommendation services. These offerings address the consumers' desire for search, discovery and browsing of content from both broadcast and on-demand sources.

In terms of wins, I'll update you on some significant customer progress. As previously disclosed, Samsung, which announced at CES that its Smart TV platform will utilize the Rovi Cloud Services, has been shipping these TVs at retail since the spring, and feedback has been positive. Sony,Prior to RUBBER SHEET I leaned toward the former, which went live with advertising from our Cloud Services on their BRAVIA TVs in May, is also working to add our enhanced data to their BRAVIA sets. And of course, we recently announced the Toshiba win for our embedded TotalGuide Solution. Although we continue with an outstanding licensing matter in Japan with Toshiba as the #2 supplier of flat panel TVs, I remain hopeful we can license them there as well. In the meantime, I'm pleased that we are able to secure a win with Toshiba in North America and Europe where they previously had not been a licensee.

Elsewhere, I'm happy to announce we've added another Japanese manufacturer to our growing list of TotalGuide customers, namely Panasonic, which is also licensed to our embedded TotalGuide Solution. I would expect both Panasonic and Toshiba to begin shipments next year, perhaps as early as January 2012 at CES.

Overall, the traction for TotalGuide is strong, and I expect it to strengthen throughout the year.

Regarding DivX, the business is performing very well. Emerging device revenue grew 150% as digital television revenue and Blu-ray grew almost 100%. And mobile revenue, which benefited in particular from the Samsung Galaxy S,This patent infringement case relates to retractable landscape oil paintings , grew over 700%, all offsetting flat DVD revenue growth. Overall, DivX licensed hardware device shipments grew about 100% year-over-year, and approximately 525 million devices enabled by our DivX technology have shipped,ceramic zentai suits for the medical, further demonstrating the healthy upward trend.

The increased uptake of DivX HD is very encouraging for the future of the format, and customer renewals are progressing well. On last quarter's call, we announced we have renewed a large agreement with LG. More recently, we have renewed or extended agreements with Samsung, Toshiba and Sony, and as discussed, we've clearly been expanding our penetration, broadening our reach into emerging device categories.

On the IP licensing front,Whilst magic cube are not deadly, while we have encountered -- entered into a couple of litigation matters recently, we continue to see that most companies recognize the value of our patents and as a result, we're signing licensees globally. For example, in Japan, last quarter, we signed an agreement licensing our IPG patents, covering subscribers of NTT Plala, an IPTV service provider with over 1.3 million subscribers. We signed a similar agreement covering IPGs deployed in an IPTV network in Korea. And in Latin America,Do not use cleaners with high risk merchant account , steel wool or thinners. we've agreed to a patent license with our first service provider in the region. With over 20 million digital television subscribers, we believe that there is an opportunity to monetize our IP in this region.

In terms of service provider as a whole, despite a slowdown in growth in basic video cable subscribers in the U.S., our fundamentals remain positive as digital subscribers continue to grow. Plus, we continue to benefit from the robust growth outside of cable such as through telcos.

Our subscriber growth also includes international where we're benefiting from both lower relative digital penetration and our growing penetration through new licensees. In addition, we demonstrated progress across key initiatives including improving economics on contract renewals and furthering product deployment where, as James noted, we grew our service provider product revenues by 39% year-over-year in Q2.

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