TiVo Revenue Falls 6.5% Ahead of Acquisition
May 31 2016 - 5:20PM
Dow Jones News
Television set-top box maker TiVo Inc. said its revenue fell
6.5% in the latest quarter as a decline in the company's hardware
segment masked growth in its service and software business and its
technology segment.
Shares fell 2.6% to $9.69 in recent after-hours trading.
For the period ended April 30, TiVo reported revenue of $107.3
million, compared with $114.7 million a year earlier.
The San Jose, Calif., company said service-and-technology
revenue grew 16% to $99.7 million, edging past expectations of
analysts polled by Thomson Reuters for service-and-technology
revenue of $99.6 million.
Hardware revenue slumped by two-thirds to $7.5 million.
Naveen Chopra, interim chief executive and finance chief, said
in prepared remarks Tuesday that in the latest quarter, TiVo
delivered significant growth in its service provider business while
implementing previously announced restructuring efforts and new
product development initiatives.
During the latest quarter, TiVo added a net 315,000
subscriptions. At quarter's end, TiVo's total subscriber base
increased to 7.12 million, compared with 5.76 million a year
earlier.
The digital-video recorder pioneer is in the process of being
acquired by entertainment-tech firm Rovi Corp. The roughly $1.1
billion deal will combine TiVo's traditional TV content with Rovi's
guides, advertising, analytics and cloud services. Rovi makes a
significant amount of revenue from its licensing agreements with
video distributors such as Comcast Corp. The combined company will
keep the TiVo name.
TiVo said in its earning release that the Rovi deal is on track
to close in the third quarter.
Over all, TiVo reported a profit of $4.2 million, or 4 cents a
share, down from $7.9 million, or 8 cents a share, a year earlier.
Excluding restructuring-related costs, expenses related to the Rovi
deal and other items, adjusted profit rose to $12.1 million from
$9.1 million. Analysts polled expected per-share profit of 8
cents.
TiVo also affirmed is guidance for its fiscal year ending in
January.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
May 31, 2016 17:05 ET (21:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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