Rovi shares slump 35 percent on profit warning Wed Jul 18, 2012 9:34am EDT (Reuters) - Shares of Rovi Corp (ROVI.O) fell 35 percent on Wednesday morning after the digital media solutions provider forecast a bleak year ahead and two brokerages downgraded its stock. On Tuesday, the company estimated its second-quarter results well below what analysts were expecting and drastically cut its full-year forecast on an anticipated weakening of sales in its consumer electronics division. Rovi's software is used by electronics manufacturers -- including Apple Inc (AAPL.O) and Sony Corp (6758.T) -- to play various digital media formats, such as DivX, on home entertainment devices. "What was striking in this retrenchment, other than its sheer magnitude, is that the weakness appears to be across the board," Brean Murray Carret & Co analyst Todd Mitchell said. A weakening consumer electronics market for devices that use its technology and a slow pace of license renewals and sales were the main reasons for Rovi's poor outlook, analysts said. "Rovi has not executed effectively recently and is now, in our view, facing uncertainty surrounding the timing of new license agreements as well as weakness in its underlying market," BMO Capital Markets analyst Edward Williams wrote in a note to clients. Williams downgraded the stock to "market perform" from "outperform." Shares of the Santa Clara, California-based company were down $6.10 at $11.50, making them the top percentage loser on the Nasdaq on Wednesday morning. Reporting by Supantha Mukherjee in Bangalore; Editing by Sreejiraj Eluvangal