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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 June 30, 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 August 2, 2004, there were outstanding 423,463,977 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 June 30, 2004 (unaudited) and December 31, 2003

 1
  Condensed Consolidated Statements of Operations--Unaudited for the three and six months ended June 30, 2004 and 2003

 2
  Condensed Consolidated Statements of Stockholders' Equity--Unaudited for the three and six months ended June 30, 2004 and 2003

 3
  Condensed Consolidated Statements of Cash Flows--Unaudited for the six months ended June 30, 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

 34  
Item 4.

 Controls and Procedures

 35  
PART II.  OTHER INFORMATION

  
Item 1.

 Legal Proceedings

 36  
Item 4.

 Submission of Matters to a Vote of Security Holders

 36  
Item 6.

 Exhibits and Reports on Form 8-K

 36  
Signature

 37  

Items 2, 3 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)


June 30,
          2004           
(Unaudited)
December 31,
          2003           

                                           ASSETS            
Current assets:                
      Cash and cash equivalents     $ 596,325   $ 257,360  
      Restricted cash    81,198    37,546  
      Marketable securities    4,692    4,897  
      Receivables, net    119,352    131,531  
      Deferred tax asset, net    15,742    21,175  
      Other current assets    27,982    26,884  
      Assets held for sale       4,562     --  
            Total current assets     849,853     479,393  
Property and equipment, net       39,688     51,115  
Indefinite-lived intangible assets    125,673    125,673  
Finite-lived intangible assets, net    131,170    180,860  
Goodwill    329,753    380,070  
Income taxes receivable    68,472    69,329  
Other assets       41,141     47,729  
     $ 1,585,750   $ 1,334,169  
                            LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:                  
      Accounts payable and accrued expenses   $ 277,822   $ 275,926  
      Current portion of long-term debt and capital lease obligations    1,250    2,104  
      Current portion of deferred revenue    171,147    186,147  
      Liabilities related to assets held for sale    2,562    --  
            Total current liabilities    452,781    464,177  
Deferred tax liability, net    172,738    156,645  
Long-term debt and capital lease obligations, less current portion    --    138,736  
Deferred revenue, less current portion    512,343    137,047  
Other liabilities    42,042    61,591  
Commitments and contingencies  
Stockholders' equity:                
      Preferred stock, par value $0.01 per share    --    --  
      Common stock, par value $0.01 per share    4,334    4,279  
      Additional paid-in capital    8,480,441    8,452,702  
      Accumulated deficit    (7,981,011 )  (7,983,239 )
      Accumulated other comprehensive income, net of tax    368    743  
      Unearned compensation    (20 )  (246 )
      Treasury stock, at cost    (98,266 )  (98,266 )
            Total stockholders' equity    405,846    375,973  
    $ 1,585,750   $ 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
June 30,
    2004                            2003		   Six Months Ended
June 30,
    2004                            2003
Revenues:                    
      Publishing   $ 95,088   $ 107,127   $ 193,450   $ 216,114  
      Cable and satellite    63,020    42,492    105,148    78,086  
      Consumer electronics licensing    21,007    30,993    75,687    64,856  
     179,115    180,612    374,285    359,056  
Operating expenses:                              
      Publishing    93,909    99,613    184,318    196,780  
      Lease settlement    (10,088 )  --    (10,088 )  --  
      Cable and satellite    30,840    30,051    58,031    54,820  
      Consumer electronics licensing    17,008    14,523    39,344    36,739  
      Corporate    21,813    24,460    41,581    49,824  
      Operating expenses, exclusive of expenses shown below    153,482    168,647    313,186    338,163  
      Stock compensation    34    (6,732 )  237    32,863  
      Depreciation and amortization    8,857    54,895    17,485    110,626  
     162,373    216,810    330,908    481,652  
Operating income (loss)    16,742    (36,198 )  43,377    (122,596 )
Interest expense    (399 )  (1,773 )  (1,501 )  (3,726 )
Other income, net    1,559    78    2,119    3,285  
Income (loss) from continuing operations before income taxes    17,902    (37,893 )  43,995    (123,037 )
Income tax (benefit) expense    (23,294 )  (9,947 )  16,241    (43,735 )
Income (loss) from continuing operations    41,196    (27,946 )  27,754    (79,302 )
Discontinued operations:                            
      Income from discontinued operations    1,246    8,839    15,585    18,674  
      Loss on disposal of discontinued operations    --    --    (28,882 )  --  
      Income tax expense    438    3,427    12,229    7,268  
Income (loss) from discontinued operations    808    5,412    (25,526 )  11,406  
            Net income (loss)   $ 42,004   $ (22,534 ) $ 2,228   $ (67,896 )
Basic and diluted income (loss) per share:                            
      Income (loss) from continuing operations   $ 0.10   $ (0.07 ) $ 0.07   $ (0.20 )
      Income (loss) from discontinued operations    --    0.01    (0.06 )  0.03  
            Net income (loss)   $ 0.10   $ (0.06 ) $ 0.01   $ (0.17 )
Weighted average shares outstanding:                              
       Basic    423,379    408,158    421,706    408,157  
       Diluted    425,874    408,158    426,089    408,157  


        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
June 30,
2004                           2003		   Six Months Ended
June 30,
2004                           2003
                           
Balance at beginning of period     $ 363,432   $ 883,773   $ 375,973   $ 894,470  
Net income (loss)    42,004    (22,534 )  2,228    (67,896 )
Other comprehensive income (loss)    (265 )  898    (375 )  (4,036 )
Comprehensive income (loss)    41,739    (21,636 )  1,853    (71,932 )
Other, principally shares issued pursuant to stock option plans, including tax benefit,                            
    and amortization of unearned compensation    675    (6,719 )  28,020    32,880  
Balance at end of period   $ 405,846   $ 855,418   $ 405,846   $ 855,418  


        See accompanying Notes to Condensed Consolidated Financial Statements.


3

GEMSTAR-TV GUIDE INTERNATIONAL, INC.

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

  Six Months Ended
June 30,
2004                              2003 
Cash flows from operating activities:            
Net income (loss)     $ 2,228   $ (67,896 )
      Adjustments to reconcile net income (loss) to net cash provided by  
         operating activities:                
      Depreciation and amortization    17,485    130,432  
      Deferred income taxes    21,527    (35,432