Tuesday, September 08, 2015 5:47:07 PM
Sep 08, 2015 17:06:00 (ET)
By Tess Stynes
TiVo Inc. said its revenue rose 6.8% as the digital video recorder pioneer continued to add subscribers and distribution agreements with cable providers during the quarter ended in July.
Revenue increased to $119.5 million from $111.9 million a year earlier. Services and technology revenue, a metric closely watched by analysts, climbed 14% to $99.1 million, above the company's estimate for $94 million to $97 million.
Shares rose 1.1% to $9.20 in recent after-hours trading as earnings, excluding certain items, also beat expectations.
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. Earlier this year, TiVo acquired Warsaw-based Cubiware in a deal to expand its international presence in emerging pay-TV markets.
TiVo, which generates "a significant amount of revenue" from patent settlement agreements due to expire starting in 2018, on Tuesday also said it filed a suit against Samsung Electronics Co. Ltd., alleging infringement of four patents related to TiVo's technology for digital video recorder and mobile devices, including two set to expire in 2018 and the other two in later years.
Chief Executive Tom Rogers, in prepared remarks on Tuesday, said that in the latest quarter TiVo "established new distribution relationships and expanded existing ones, including beginning the rollout within Vodafone Spain's IPTV footprint and new agreements with WOW!, the ninth-largest cable TV provider in the U.S."
In the quarter ended July 31, TiVo added a net 281,000 subscriptions in the latest period, amid continued growth of subscriptions generated through third-party vendors, including cable companies. At quarter's end, TiVo's total subscriber base expanded more than 6 million, compared with 4.8 million a year earlier and 5.8 million as of April 30.
Overall, TiVo reported a profit of $8.3 million, down from $9.3 million a year earlier. On a per-share basis, earnings rose to 9 cents from 8 cents on a decline in shares outstanding. Excluding expenses related to the Cubiware acquisition and convertible notes impacts, TiVo's earnings increased to $11.9 million in the latest period. The company expected net income of $7 million to $10 million.
For the current quarter, TiVo forecast net income of $5 million to $7 million and services and technology revenue of $100 million to $103 million. Analysts polled by Thomson Reuters expected net income of $10.4 million and services and technology revenue of $98.2 million.
The company's outlook includes $5 million of increased subscriber acquisition costs in its TiVo-owned segment partly related to a product launch set for the current quarter.
Write to Tess Stynes at tess.stynes@wsj.com
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(END) Dow Jones Newswires
September 08, 2015 17:06 ET (21:06 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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