Cable Company Royalties More Likely For TiVo
Kate DuBose Tomassi, 05.25.06, 11:11 AM ET
Citing TiVo's narrower-than-expected quarterly loss and recent favorable jury verdict, Standard & Poor's Equity Research analyst Tuna Amobi reiterated a "strong buy" on shares of the digital video recorder maker.
On Wednesday, TiVo posted a fiscal first-quarter loss of 13 cents per share, narrower than the analyst's estimate of a loss of 19 cents per share, due, at least in part, to an accounting change, the analyst said in a report.
"We continue to view a recent favorable jury verdict on a DVR patent suit against EchoStar Communications as good for TiVo's growth prospects," said Amobi. He said he believes an appeal by EchoStar, which owns the Dish Network satellite TV service, could take years.
In addition, the analyst said that the jury verdict in TiVo's favor "enhances the likelihood of potential royalties from cable operators, which could help offset possible flatness elsewhere." He added that the result of the lawsuit may increase TiVo's attractiveness as a takeover candidate. |
