By John Kell
TiVo Inc.'s (TIVO) fiscal third-quarter revenue jumped as the
maker of TV set-top boxes added more subscribers, though profit for
the period slid 79% as last year's results included $78.4 million
in litigation proceeds.
The company has recently seen increased strength in its
business, following a long string of lawsuits and struggles to find
sustainable consumer adoption. The company made waves with its
first products in 1999, but quickly found competition among cable
and satellite companies that released similar products.
TiVo sued many of them, saying they inappropriately copied its
DVR technology, and has since won a series of settlements with
large companies including Dish Network Corp. (DISH).
Looking ahead, TiVo projected fiscal fourth-quarter net income
of $2 million to $5 million and service-and-technology revenue of
$83 million to $85 million. Analysts surveyed by Thomson Reuters
most recently forecast $84 million in comparable revenue.
For the period ended Oct. 31, TiVo reported a profit of $12.5
million, or 10 cents a share, down from $59 million, or 44 cents a
share, a year earlier. Net revenue climbed 43% to $117.3 million,
while service-and-technology revenue jumped 33% to $81.7
million.
TiVo in August projected third-quarter net income of $6 million
to $8 million and service-and-technology revenue of $80 million to
$82 million.
Gross margin widened to 57.5% from 50.7%.
The company has now reported subscriber increases for nine
straight quarters, following a four-year streak of declining
subscriber numbers. In the latest period, TiVo added a net 274,000
subscribers, compared with the 225,000 subscribers it gained a year
ago.
Monthly churn, or the customer cancellation rate, was 1.8% for
TiVo-owned subscriptions, compared with 1.4% a year earlier.
Shares rose 1.6% to $13.45 in after-hours trading.
Write to John Kell at john.kell@wsj.com
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