TIVO TiVo Corporation

TiVo Inc. said revenue rose 7.9% in the latest quarter, as the digital video recorder pioneer continued to add subscribers.

For the period ended Jan. 31, TiVo said net revenue increased to $123.1 million from $114.1 million. Revenue from its services and software segment and its technology business totalled $101.7 million, an increase 11%, near the lower end of company estimates for $101 million to $104 million. Hardware sales declined 4.9% to $21.4 million.

During the latest quarter, TiVo added a net 337,000 subscriptions. At quarter's end, TiVo's total subscriber base increased to 6.8 million, compared with 5.5 million a year earlier.

For the current fiscal year ending in January 2017, the company forecasted net income of $40 million to $50 million on combined revenue from its services and software segment and its technology business of $400 million to $420 million. Analysts polled by Thomson Reuters expected net income of $46.21 million and revenue of $431.79 million.

The San Jose, Calif., company has been aiming to spur growth by adding cloud-based media services and an over-the-air recording service, as well as by expanding abroad. In September, it introduced its latest recorder, called the Bolt.

In January, TiVo named its finance chief, Naveen Chopra, as its interim chief executive. He succeeded Tom Rogers, who remains on as nonexecutive chairman.

Mr. Chopra said in prepared remarks Tuesday that while TiVo believes it is a clear leader in next-generation video technology that in order to benefit the company needs "to chart a new path." The company will focus on its operator-related businesses, launch a new class of consumer products and make organizational and operational changes to drive revenue and better manage costs, Mr. Chopra stated.

Mr. Chopra said "we expect this simplified, pragmatic focus will drive $25 million to $35 million in improved adjusted [earnings before interest, taxes, depreciation and amortization] this year; and position us to capture profitable marketshare in a rapidly evolving video ecosystem."

In an interview Mr. Chopra said the growth outlook for the current fiscal year, which also includes a projected 29% growth in Ebitda, stems from expectations for stronger revenue as well as cost reduction moves TiVo is starting to put in place. He said the moves include the reorganization and the realignment of some resources, but he didn't provide specific details.

On the consumer side of its business, TiVo plans to reallocate some of its marketing spending for launches of new consumer products planned for later in the year "that will take us beyond our role as the provider of traditional DVR," Mr. Chopra said without providing specific details.

Federal regulators have proposed overhauling rules for television set-top boxes that potentially would give cable and satellite customers more choice in whether to use their service provider's set-top box and cable app, or instead choose competing devices and apps. If approved, the proposal would open more of the market to alternative set-top-box providers, such as TiVo and Alphabet Inc.'s Google unit. Most pay-TV companies are against the move, which could reduce their revenues from box-rental fees.

Mr. Chopra said he expects the conference call will include more talk about the FCC proposal. He added that the company hasn't "advocated for a particular solution" regarding the sunsetting in coming years of CableCARD plug-in cards, which allow consumers to receive digital cable channels without equipment from a pay TV provider. He added that "having a standard that can be used by large and small cable operators is important."

Over all, TiVo reported a profit of $199,000, down from earnings of $7.1 million a year earlier. On a per-share basis the company posted breakeven results, compared with earnings of seven cents a year earlier. The latest period included a net $5.1 million in executive-transition expenses. Excluding executive-transition expenses and other items, the adjusted profit fell to $7.6 million from $8.3 million. The company had projected an adjusted profit between $4 million and $6 million.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

March 01, 2016 19:45 ET (00:45 GMT)

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