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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)                                                                                                                                                                                          

|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2004

or

|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 0-24218

GEMSTAR-TV GUIDE INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)


         
     Delaware
  (State or other jurisdiction of
 incorporation or organization)		    95-4782077
  (I.R.S. Employer
 Identification No.)		  
                            
                       

6922 Hollywood Boulevard, 12th Floor, Los Angeles, California 90028
 (Address of principal executive offices including zip code)

 (323) 817-4600
(Registrant’s telephone number, including area code)

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  |X|    No  |_|  

        Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).  Yes  |X|    No  |_|  

        As of April 23, 2004, there were outstanding 423,294,412 shares of the registrant’s Common Stock, par value $0.01 per share.

GEMSTAR-TV GUIDE INTERNATIONAL, INC.

INDEX


    Page
PART I.  FINANCIAL INFORMATION   

Item 1.

 Condensed Consolidated Financial Statements
  Condensed Consolidated Balance Sheets as of March 31, 2004 (unaudited) and December 31, 2003

 1
  Condensed Consolidated Statements of Operations--Unaudited for the three months ended March 31, 2004 and 2003

 2
  Condensed Consolidated Statements of Stockholders' Equity--Unaudited for the three months ended March 31, 2004 and 2003

 3
  Condensed Consolidated Statements of Cash Flows--Unaudited for the three months ended March 31, 2004 and 2003

 4
  Notes to Condensed Consolidated Financial Statements--Unaudited

 5
Item 2.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 16  
Item 3.

 Quantitative and Qualitative Disclosures About Market Risk

 33  
Item 4.

 Controls and Procedures

 34  
PART II.  OTHER INFORMATION

  
Item 1.

 Legal Proceedings

 35  
Item 6.

 Exhibits and Reports on Form 8-K

 35  
Signature

 36  

Items 2, 3, 4 and 5 of PART II are not applicable and have been omitted.

GEMSTAR-TV GUIDE INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)


  March 31,
2004
(Unaudited)		 December 31,
2003

                                          ASSETS            
Current assets:    
      Cash and cash equivalents     $ 476,762   $ 257,360  
      Restricted cash       80,165     37,546  
      Marketable securities       4,574     4,897  
      Receivables, net       112,301     131,531  
      Deferred tax asset, net       15,742     21,175  
      Other current assets       33,148     26,884  
      Assets held for sale       85,539     --  
            Total current assets       808,231     479,393  
Property and equipment, net       42,711     51,115  
Indefinite-lived intangible assets       125,673     125,673  
Finite-lived intangible assets, net       135,082     180,860  
Goodwill       329,753     380,070  
Income taxes receivable       69,329     69,329  
Other assets       45,290     47,729  
      $ 1,556,069   $ 1,334,169  
                            LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:    
      Accounts payable and accrued expenses     $ 249,042   $ 275,926  
      Income taxes payable       80,860     --  
      Current portion of long-term debt and capital lease obligations       139,986     2,104  
      Current portion of deferred revenue       155,440     186,147  
      Liabilities related to assets held for sale       37,539     --  
            Total current liabilities       662,867     464,177  
Deferred tax liability, net       118,059     156,645  
Long-term debt and capital lease obligations, less current portion       288     138,736  
Deferred revenue, less current portion       357,017     137,047  
Other liabilities       54,406     61,591  
Commitments and contingencies    
Stockholders' equity:                
      Preferred stock, par value $.01 per share       --     --  
      Common stock, par value $.01 per share       4,333     4,279  
      Additional paid-in capital       8,479,800     8,452,702  
      Accumulated deficit       (8,023,015 )   (7,983,239 )
      Accumulated other comprehensive income, net of tax       633     743  
      Unearned compensation       (53 )   (246 )
      Treasury stock, at cost       (98,266 )   (98,266 )
            Total stockholders' equity       363,432     375,973  
      $ 1,556,069   $ 1,334,169  


        See accompanying Notes to Condensed Consolidated Financial Statements.



1

GEMSTAR-TV GUIDE INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS—UNAUDITED
(In thousands, except per share data)


Three Months Ended
     March 31,    
2004                                 2003
Revenues:            
      Publishing     $ 98,362   $ 108,987  
      Cable and satellite       42,128     35,594  
      Consumer electronics licensing       54,680     33,863  
        195,170     178,444  
Operating expenses:                
      Publishing       90,409     97,167  
      Cable and satellite       27,191     24,769  
      Consumer electronics licensing       22,336     22,216  
      Corporate       19,768     25,364  
      Operating expenses, exclusive of expenses shown below       159,704     169,516  
      Stock compensation       203     39,595  
      Depreciation and amortization       8,628     55,731  
        168,535     264,842  
Operating income (loss)       26,635     (86,398 )
Interest expense       (1,102 )   (1,953 )
Other income, net       560     3,208  
Income (loss) from continuing operations before income taxes       26,093     (85,143 )
Income tax expense (benefit)       39,535     (33,787 )
Loss from continuing operations       (13,442 )   (51,356 )
Discontinued operations:                
       Income from discontinued operations       14,339     9,835  
       Loss on disposal of discontinued operations       (28,882 )   --  
       Income tax expense       11,791     3,841  
 (Loss) income from discontinued operations       (26,334 )   5,994  
            Net loss     $ (39,776 ) $ (45,362 )
Basic and diluted income (loss) per share:                
      Loss from continuing operations     $ (0.03 ) $ (0.13 )
      (Loss) income from discontinued operations       (0.06 )   0.02  
            Net loss     $ (0.09 ) $ (0.11 )
Weighted average shares outstanding - basic and diluted       420,032     408,156  


         See accompanying Notes to Condensed Consolidated Financial Statements.



2

GEMSTAR-TV GUIDE INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY—UNAUDITED
(In thousands)


Three Months Ended
    March 31,     
    2004                     2003

Balance at beginning of period     $ 375,973   $ 894,470  
Net loss       (39,776 )   (45,362 )
Other comprehensive loss       (110 )   (4,934 )
Comprehensive loss       (39,886 )   (50,296 )
Other, principally shares issued pursuant to stock option plans, including tax benefit,    
   and amortization of unearned compensation       27,345     39,599  
Balance at end of period     $ 363,432   $ 883,773  


         See accompanying Notes to Condensed Consolidated Financial Statements.



3


GEMSTAR-TV GUIDE INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS—UNAUDITED
(In thousands)


Three Months Ended
    March 31,    
  2004                       2003
Cash flows from operating activities:            
      Net loss     $ (39,776 ) $ (45,362 )
      Adjustments to reconcile net loss to net cash provided by operating activities:                
            Depreciation and amortization       8,628     65,662  
            Deferred income taxes       (33,152 )   (38,900 )
            Stock compensation expense       203     39,595  
            Tax benefit associated with stock options       1,259     --  
            Loss on disposal of discontinued operations       28,882     --  
            Accretion of discount on note receivable       (618 )   (865 )
            Gain on sale of marketable securities       (51 )   (2,026 )
            Transfer to restricted cash       (42,500 )   --  
            Other       251     190  
            Changes in operating assets and liabilities:                
                    Receivables       14,672     351  
                    Other assets       (3,686 )   18,756  
                    Accounts payable, accrued expenses and other liabilities       55,572     (5,493 )
                    Deferred revenue       220,940     (15,695 )
                          Net cash provided by operating activities       210,624     16,213  
Cash flows from investing activities:                
      Investments and acquisitions       (15,000 )   --  
      Purchases of marketable securities       (4,502 )   --  
      Sales and maturities of marketable securities       4,775     10,428  
      Proceeds from sale of assets       2,322     814  
      Additions to property and equipment       (3,058 )   (2,623 )
                          Net cash (used in) provided by investing activities       (15,463 )   8,619  
Cash flows from financing activities:                
      Repayments under bank credit facility and term loan       --     (22,500 )
      Repayment of capital lease obligations       (566 )   (528 )
      Proceeds from exercise of stock options       25,883     4  
      Distributions to minority interests       (1,060 )   (3,874 )
                          Net cash provided by (used in) financing activities       24,257     (26,898 )
Effect of exchange rate changes on cash and cash equivalents       (16 )   383  
                          Net increase (decrease) in cash and cash equivalents       219,402     (1,683 )
Cash and cash equivalents at beginning of period       257,360     350,262  
Cash and cash equivalents at end of period     $ 476,762   $ 348,579  
Supplemental disclosures of cash flow information:                
      Cash paid for income taxes     $ 2,220   $ 915  
      Cash paid for interest       9