TiVo Posts Third-Quarter Profit From Settling Patent Case
TiVo Inc. (TIVO), the developer of digital- video recorders, posted a third-quarter profit after settling patent litigation with Verizon Communications Inc. (VZ), signing more subscribers and boosting pay-TV revenue.
Third-quarter net income totaled $59 million, or 44 cents a share, in the period ended Oct. 31, compared with a loss of $24.5 million, or 21 cents, a year earlier, Alviso, California- based TiVo said yesterday in a statement. Results included $78.4 million in proceeds from the litigation.
The digital-recording pioneer has widened margins by selling advanced set-top boxes with more storage and the ability to record several shows at once. Revenue grew 27 percent to $82 million from $64.8 million a year earlier. That exceeded analysts’ projections of $72.4 million, the average of 12 estimates compiled by Bloomberg. Subscribers increased 44 percent to 2.94 million, TiVo said.
“We have more and more differentiated features that are driving our growth,” Chief Executive Officer Tom Rogers said in an interview.
TiVo rose 6.4 percent to $11.54 at the close in New York, the biggest gain since January, and has advanced 29 percent this year. It was the second straight day with an increase in excess of 6 percent.
This quarter, TiVo forecasts service and technology revenue of $63 million to $65 million and a net loss of $15 million to $17 million. Excluding litigation costs, the company forecasts a profit before interest, taxes, depreciation and amortization, according to the statement.
The company has service agreements with nine of the top 21 U.S. pay-TV companies and is expanding with Comcast Corp. and operators overseas, Rogers said.
TiVo is pursuing patent infringement litigation against Google Inc. (GOOG)’s Motorola Mobility and Cisco Systems Inc. (CSCO) over use of recording technology in the set-top boxes they make. Time Warner Cable Inc. (TWC) is a defendant in both cases.
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