TiVo Third-Quarter Profit Drops on Interest Costs, TaxesChristopher Palmeri
TiVo Inc., the maker of digital video recorders, reported quarterly profit that missed analysts’ estimates after interest costs and taxes rose. The shares fell.
Third-quarter net income fell to $6.35 million, or 6 cents a share, in the period ended Oct. 31 from $12.5 million, or 10 cents, a year earlier, the San Jose, California-based company said yesterday in a statement. Analysts had projected quarterly earnings of 7 cents a share.
Profit was crimped by interest on a new convertible bond, as well as higher taxes, Chief Executive Officer Tom Rogers said in a telephone interview. TiVo subscribers increased 32 percent to 5.1 million, drawn to new features such as the ability to link to Amazon.com Inc.’s video service.
“We’re getting a lot of life from that side of the business,” Rogers said.
TiVo shares dropped 3.2 percent to $12.49 at 10 a.m. New York time and earlier fell as much as 3.7 percent for the biggest decline since Oct. 15 . Through yesterday, the stock had declined 1.6 percent so far this year.
TiVo, a pioneer in the DVR market, has been expanding in Europe, adding to its sales and marketing services in the region to gain subscribers, as well as in North America. Earlier this year, the company began offering a DVR for people who don’t subscribe to pay TV.
Third-quarter revenue rose 1 percent to $118.4 million, a record for the company, topping the $114.8 million average of 16 analysts’ estimates compiled by Bloomberg.