InterVideo, the top maker of DVD playback software used in personal computers, said yesterday it had filed a patent infringement lawsuit against Dell, the world`s number one PC maker.
Separately, InterVideo reported a quarterly loss, weighed down by a write-off of research and development costs tied to its acquisition of a controlling stake in Taiwan`s ULead.
InterVideo shares tumbled 11.9% in after- hours trading on Monday to $12 from a closing price on Nasdaq of $13.62 following news of the quarterly report and patent lawsuit. Dell shares dipped 15c in after-hours trade to $36.43.
The patent complaint, the latest case InterVideo has pursued against major PC makers, was filed in the US District Court for the Northern District of California against Dell, the company said in a statement.
InterVideo alleges Dell violated its US patent number 6 765 788 that covers the integration of certain PC and electronic device functions. The company`s software allows a DVD disk to automatically start playing a movie when a user inserts a disk into a computer running an InterVideo program.
Dell spokesman Lionel Menchaca said his Round Rock, Texas-based company had no comment on the lawsuit, citing company policy against commenting on pending litigation.
Last year, InterVideo filed two patent infringement suits against Taiwan`s Acer, one in US federal court and the other in a Taiwanese district court, for infringement of patents tied to its "InstantON" technology.
InterVideo said in a statement that it resolved these cases with Acer to its satisfaction.
A spokesman for InterVideo was not immediately available.
The Fremont, California-based company said it has asked the California court to enjoin Dell from manufacturing, selling or importing products that infringe its patent. The suit seeks damages and attorney fees and costs.
InterVideo also said it posted a net loss of $4.1 million, or 30c per diluted share, including a research write-down charge of $4.8 million, compared with the year earlier quarter`s net profit of $1.1 million, or 7c a share.
A handful of analysts surveyed by Reuters Estimates were looking for earnings of around 17c per share.
Revenue rose to $27.6 million from $16.7 million, boosted by its acquisition of a stake in ULead in April. This was shy of three analysts` views, whose forecasts ranged from $28 million to $29 million, according to Reuters Estimates.
Looking ahead, InterVideo said it expected third quarter revenue in a range from $27 million to $29 million, including some non-recurring revenue. It forecast net earnings per share in a range between 15c and 17c.
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