06/23/2002 11:00PM

TVG parent stock takes sharp drop


Shares in Gemstar-TV Guide International, the parent company of Television Games Network, a live in-home horse racing and account wagering operation, dropped nearly 40 percent on Monday after the company lost a patent infringement case.

The stock closed at $4.99, its lowest level in nearly five years, after heavy trading volume on Monday afternoon on Nasdaq.

The sudden plummet was not unexpected after a judge from the International Trade Commission ruled late Friday that there were no infringements on three patents Gemstar claimed were being violated on imported television receivers. Before the announcement of the ruling, the company's shares closed at $8.20 on Friday, up 10 cents on the day.

After Friday's ITC ruling, Deutsche Bank Securities and Goldman Sachs downgraded the Gemstar stock.

TVG network programming, a subsidiary of Gemstar, is available nationwide on Dish Network and on select cable systems. TVG also operates an interactive account wagering network.