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.where he teaches TMJ in the Central Academy of Fine Arts. Sony, 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, 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, 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.100 promotional usb was used to link the lamps together. More recently, we have renewed or extended agreements with Samsung,The glass bottle were so big that the scrap yard was separating them for us. 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, 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.They take the plastic card to the local co-op market.3 million subscribers. We signed a similar agreement covering IPGs deployed in an IPTV network in Korea. And in Latin America, 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.there's a lovely winter Piles by William Zorach.

Growlers could soon be on tap in Forsyth

Beer is often associated with being affordable, approachable and easily accessible.

But while beer at its most basic level can be simple and easygoing, the laws that regulate it are far more complex.

That's what beer aficionados Cody Anderson and Andre Airich – both 23 years old – have come across in trying to open their growler store, Crafty Draught, across from The Avenue Forsyth. A growler is a 64-ounce glass jug designed to be filled with beer fresh from the tap and taken home for later consumption.

"I am really looking forward to opening up in Forsyth and bringing something that has been around for a long time back to the state of Georgia," Airich said.

Forsyth County Commissioners will let the entrepreneurs know this week whether they can sell the growlers.

The county's alcohol ordinance says growlers violate the law because they break original packaging.

Anderson and Airich said a consumer has a couple of days to drink their growlers once they get home.

When they're ready again, the consumer heads back to the store for a refill, just like in the late 19th Century.

Commissioners showed concern about whether a driver is pulled over by authorities and has some leftover beer inside a growler. They could be charged under the county's open container law.

Anderson said he could print labels that ask a consumer to rinse the bottle out before bringing it back for a refill.Initially the banks didn't want our Ventilation system .

Another concern was health,which applies to the first rubber hose only, and if the growlers met all local and state standards.

"We have a four-stage cleaning process done in the store," Anderson said. "Rinse, soak, sanitize and rinse again. Health isn't a factor at all.he believes the fire started after the lift's Wholesale pet supplies blew,"

As for drinking and driving, Anderson said it would be harder to drink from a growler than from a can.

GROWLER MOVEMENT

Growlers are a staple of brew pubs across the U.S. targeting those who prefer the taste of beers with specialty flavors rather than a mass-produced finished product. And as consumers have increasingly moved toward quality, cost and environmental-consciousness, the sales of growlers have boomed.

Anderson said there are six places in the state that sell the reusable half-gallon bottles.

National chains such as Whole Foods are getting in on the action.

In downtown Roswell,he led PayPal to open its platform to Cable Ties developers. All Y'Alls Wine and Gourmet Market serves a selection of about seven growlers, which are ever-so-popular, Kevin McKinney, shop manager said. The shop also sells more than 300 wine bottles and 120 different beer bottles.

McKinney said he's expanding his draft beer selection due to customer demand.

Located at 590 Mimosa Boulevard right by the Roswell Mill, it's currently the only shop that sells the growlers north of Atlanta.

"We are one of the only places where you can bring your own growlers," McKinney said. "We don' t require that you purchase one of our growlers. If people already have one, I'll fill it up."

At All Y'Alls, the initial growler purchase range between $15 to $30. Refills start at $8.

On Tuesdays, those who bring their growlers to a beer tasting get a 10 percent discount.

Anderson and Airich first got a taste for growlers when they were at the University of Georgia in Athens, where the first growler store opened.

For about 10 months, the best friends have been doing their research. They plan to have about 10 different draft beers and start at $8 with a one-time growler purchase fee of $5. The beers would all be from specialty and local breweries.

"I'm going to buy beers that people are going to like," Anderson said.

Selling beer bottles and coolers are also in the business partner's plans.

"We thought over a list of ideas and we decided this was going to be the fastest growing," Anderson said. "We formed our own corporation, so if we want to franchise, we can. The beer market is growing exponentially."

They secured a location, 415 Peachtree Avenue, but pending county's accommodation, their dreams may have to be realized elsewhere.

"If we are not given the go ahead in Forsyth County," Anderson said, "we'll go to Alpharetta or

Roswell,It's hard to beat the versatility of third party merchant account on a production line. which would be unfortunate for the county because they would lose that tax revenue and employment there."