TiVo posts narrower 3Q loss By MAY WONG, AP Technology Writer
Thu Nov 29, 1:09 AM ET
TiVo Inc., the maker of digital video recorders, on Wednesday reported a narrower third-quarter loss than last year and beat expectations as revenue rose sharply and expenses fell.
For the quarter ended Oct. 31, TiVo posted a loss of $8.2 million, or 8 cents per share, versus a year-ago loss of $11.1 million, or 12 cents per share.
Analysts expected a loss of 13 cents per share, according to a Thomson Financial survey.
Adjusted earnings before interest, taxes, depreciation and amortization was $300,000, better than company guidance, according to TiVo. The company recorded a loss of $6 million in the year-ago period.
Revenue rose 14 percent to $75.5 million, up from $66 million. Service and technology revenue, which is tracked by Wall Street, rose to $58.3 million from $52.5 million. Analysts expected slightly less: $57 million.
Digital video recorders allow users to pause live television programs as well as easily record shows without the hassle of video tapes — and to record one program while watching another.
TiVo's total number of subscribers fell to 4.1 million from 4.4 million in the year-ago period, mainly because satellite TV provider DirecTV Group Inc. no longer sells TiVo-based boxes, opting for its own DVR.
The number of subscribers using TiVo's standalone DVRs grew to 1.7 million from 1.6 million, however.
TiVo CEO Tom Rogers said what he called "solid" financials resulted from the company subsidizing its DVRs less and issuing fewer rebates, which significantly lowered costs. Revenue growth was driven by the higher monthly fees from new subscribers, he said.
"We believe that this quarter was an important one in terms of capitalizing on the growth opportunities we have in front of us," Rogers said.
TiVo forecast fourth-quarter service and technology revenue between $58 million and $60 million and a net loss of $9 million to $12 million. Analysts expect service and technology revenue of $59.1 million.
Shares of TiVo rose 8 cents to $5.98 in regular trading and gained 37 cents, or more than 6 percent in extended trading following its financial report.
The Alviso-based company has never had a profitable quarter. Lackluster growth in sales and service subscribers has yet to offset the larger costs of acquiring them and developing products.
Though TiVo pioneered DVRs, cheaper offerings from cable and satellite TV operators are grabbing the bulk of the estimated 20 million American households that have tuned into the technology.
Investors are still waiting for a payoff from TiVo's efforts. The company has invested in a swath of new services this past year and made deals to expand its advertising revenue stream.
TiVo also has licensed its technology to cable and satellite TV operators, but a key deal with Comcast Corp., the nation's largest cable operator, has yet to generate revenue.
The TiVo service with Comcast, which will cost Comcast customers an additional $2.95 a month, "will begin shortly," TiVo said, though Rogers declined to say when.
TiVo is continuing a patent fight with EchoStar Communications Corp., though it is "moving closer to resolution," the company said. If TiVo wins, the case will establish it as the pioneer of technology that lets people record a television show while watching another live. |
