TiVo Turns To Profit, Top Estimates - Update

(RTTNews) - Digital video recorder company TiVo Inc (TIVO), Thursday reported a swing to first-quarter profit, as increased subscriptions drove up revenues and as well on lower operating costs. Earnings for the quarter topped Wall Street estimates.

TiVo said it expects a sequential increase in service and technology revenue for the second quarter, but below Street estimates.

Investors overall were impressed with the results, helping TiVo shares gain more than 4 percent in after-hours trade on the Nasdaq.

TiVo said its total subscribers for the first quarter exceeded 4.5 million, the highest ever in its history, and includes net additions of 341,000 in its cable and satellite television business. The company said it benefited from growth in European subscriptions.

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 company is the first to power delivery of instant access to Netflix through TiVo-enabled operator set-top boxes in both Europe and North America.

San Jose, California-based TiVo posted first-quarter net income of $8 million or $0.07 per share, compared with a net loss of $10 million or $0.09 per share last year.

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

Revenues for the first quarter were $107 million, compared with $82.6 million a year ago.

Service and technology revenues for the quarter jumped 36 percent for the quarter to $86 million. Twelve analysts expected revenues of $86.85 million for the quarter.

TiVo-owned average revenue per subscription per month slid to $7.81 from $7.95 last year.

The company also benefited from operating expenses that decreased to $53.5 million from $58.6 million a year ago.

For the second quarter, TiVo expects service and technology revenue of $86 million to $88 million, while analysts currently anticipate $89.92 million.

TiVo stock closed Thursday at $11.93, up $0.18 or 1.53%, on a volume of 1.2 million shares on the Nasdaq. In after hours, the stock gained $0.53 or 4.44%, to trade at $12.46.