TiVo (TIVO) reported first quarter GAAP loss of $0.09 per share, $0.06 better than the Capital IQ consensus of ($0.15), while service & technology revenues rose 13.4% year/year to $61.8 million versus the $62.13 mln consensus (versus guidance of $60-62 mln). Q2 Guidance: The company issues in-line guidance for the second quarter with service & tech revs of $68-70 million versus the $68.65 million consensus. TiVo anticipates net loss in the range of ($13) mln to ($16) mln, and an Adjusted EBITDA of positive $1 mln to ($2) mln, which includes $9 mln to $11 mln of litigation spend. TiVo expects to be profitable on an Adjusted EBITDA basis excluding litigation spend. FY14 Guidance: For the full year Fiscal 2014, TiVo continues to anticipate that current business trends should drive Adjusted EBITDA profitability, including litigation spend. "The solid financial results this quarter were the outcome of strong operational execution across our business. Our advanced television innovation is helping to drive the global adoption of TiVo as we increased our MSO subscription base by 277,000 subscriptions, our strongest quarter of MSO subscription additions in seven years. We delivered 13% year-over-year service and technology revenue growth and reported an Adjusted EBITDA profit, which significantly exceeded our guidance. As a result, we continue to believe that we should be Adjusted EBITDA profitable, even when including litigation spend, for Fiscal 2014."
United Online (UNTD) announced that the High Court of England and Wales issued its judgment in favor of United Online's FTD subsidiaries, Interflora, Inc. and Interflora British Unit, in their long-running lawsuit against Marks and Spencer. In December 2008, Interflora and Interflora British Unit initiated proceedings against Marks and Spencer in an attempt to stop Marks and Spencer from bidding on the "Interflora" trademark on Google (GOOG). In today's ruling, the trial judge concluded that Marks and Spencer's use of the "Interflora" trademark as a Google AdWord to advertise the Marks and Spencer's Flowers & Gifts website constituted trademark infringement.
iGATE (IGTE) announces its Board has decided to terminate the employment of President and CEO Phaneesh Murthy. Concurrently, the Board has appointed Gerhard Watzinger as President and CEO on an interim basis. All changes are effective immediately. The Board's decision was made as a result of an investigation by outside legal counsel, engaged by the Board, of the facts and circumstances surrounding a relationship Mr. Murthy had with a subordinate employee and a claim of sexual harassment. The investigation, which is ongoing, has reached the finding that Mr. Murthy's failure to report this relationship violated iGATE's policy, as well as Mr. Murthy's employment contract. The investigation has not uncovered any violation of iGATE's harassment policy. Gerhard Watzinger previously served as an executive at iGATE from 1998 to 2003 in a number of roles, including CEO of the iGATE Solutions business. A Search Committee within the Board of Directors has been created, which will oversee the process for the identification and selection of a new President and CEO.
Cantor Fitzgerald raises their Priceline (PCLN) tgt to $900 from $800 to reflect the close of Kayak's acquisition effective today. Priceline's continued strength in international hotel bookings coupled with potential for synergies from Kayak's acquisition longer-term keep us positive on the stock. Their revised estimates are for $6.66B/$2.51B/$38.75 in revenue/EBITDA/EPS (normalized) for PCLN versus the $6.45B/$2.45B/$38.71 for FY13. For 2Q, they now expect $1,668M/$601M/$9.38 versus the $1,607M/$595M/$9.43, respectively.
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