TiVo Q2 Profit Top Estimates On Subscriber Growth - Update

(RTTNews) - Set-top box maker TiVo Inc. (TIVO), Tuesday reported a better-than-expected second-quarter profit, helped mainly by growth in subscriber base.

TiVo added 263,000 subscribers in the quarter, compared with 212,000 last year. At the end of the quarter, TiVo had 4.8 million subscribers, up 33 percent from a year ago.

The company also reported plans to buy back $350 million of its stock.

TiVo, based in San Jose, California, posted quarterly net earnings of $9.3 million or $0.08 per share. This compares with a profit of $269 million or $1.96 per share last year, when it had a gain of $276 million from the settlement of lawsuits with Cisco Systems and Motorola Mobility.

On average, 18 analysts polled by Thomson Reuters projected earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased 11.8 percent to $111.9 million from $100 million in the prior year.

Service and technology revenue totaled about $76.6 million, while analysts expected $87.7 million for the quarter.

For the third quarter, TiVo projects service and technology revenue of $86 million to $89 million, while analysts currently expect $89.45 million.

TiVo said it has robust pipeline of future distribution opportunities. TiVo had agreed with Comcast to continue support for CableCARDs, and to work together on a future non-CableCARD solution.

TIVO closed Tuesday at $3.90, up $0.30 or 2.21%, on a volume of 1.6 million shares on the Nasdaq. In after hours, the stock dropped $0.20 or 1.44%.