Digital distribution solutions provider Macrovision (Nasdaq: MVSN) saw its Q2 profits drop 63.2 percent to $2.5 million, compared to $6.8 million last year. On a non-GAAP basis, Q2 net income fell 27.5 to $10.3 million, compared to $14.2 million.  Revenues were also down, coming in at $57.1 million for Q2, compared to $58.3 million the year before, a 2.1 percent decrease. In its preliminary earnings announcement from July 12, Macrovision offered two reasons for the company’s poor performance: a software deal that was expected to close in Q2, but is now slated for Q3, was anticipated to lead to greater profits; the second reason was pegged to an ongoing contract dispute over unpaid use of Macrovision’s technology by one of its Consumer Electronics device manufacturer customers.

-- Macrovision generated $23 million of cash from operations in Q2 and its liquid cash and investments at the end of the quarter were $523 million.

-- Its outlook for 2007 total revenue remains at a range of $280 million to $290 million. It also expects Q3 revenues to be between $68 million and $72 million. Earnings release | Webcast (5:00 p.m. EDT)