TiVo Profit Falls, Yet Tops Estimates - Update

(RTTNews) - Digital video recorder company TiVo Inc. (TIVO) said Tuesday its profit for the third quarter declined from a year ago, when it benefited from a litigation settlement. Meanwhile, revenue for the quarter grew strongly as it added more subscribers, with overall results topping Wall Street estimates.

TiVo provides software and service technology that enables the distribution of video content on digital video recorders, non-DVR set-top boxes, computers and other devices.

The Alviso, California-based company posted quarterly net income was $12.5 million or $0.10 per share, compared with $59 million or $0.44 per share last year.

On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.06 per share for the quarter. Analysts' estimates typically exclude special items.

Results for the prior-year quarter included a settlement gain of $78 million in a patent litigation with Verizon Communications Inc.

Total revenue for the quarter climbed 34 percent to $117 million from $82 million a year ago.

Service and technology revenue was higher at $81.7 million, compared with $61 million last year, topping analysts' expectations of $81.33 million.

TiVo said its subscriptions currently stand at about 3.9 million, up 32 percent year-over-year, led by a strong quarter of close to 300,000 MSO additions.

The company said its TiVo Roamio digital video recorder continues to be well received by consumers.

For the fourth quarter, TiVo expects service and technology revenue of $83 million to $85 million. Analysts expect revenue of $84.49 million.

TiVo stock closed Tuesday at $3.24, up $0.02 or 0.15%, on a volume of 4.5 million shares on the Nasdaq. In after hours, the stock gained $0.10 or 0.76%.