Tivo beats estimates as cable subscriptions rise

Reuters

By Sruthi Ramakrishnan

Nov 26 (Reuters) - Digital video recorder maker TiVo Inc reported better-than-expected quarterly results, helpedby strong growth in cable television subscriptions.

TiVo's shares rose 3 percent in extended trading.

The company said it added 295,000 net subscribers in thethird quarter in its cable and satellite television business,which provides digital video recording service through serviceproviders' set-top boxes.

Cable subscribers are turning to TiVo in larger numbers asthe device also allows them to access online video services suchas Netflix Inc, Hulu and Google Inc's YouTube.

"We are coming in and helping cable operators to jump overthe satellite and phone world with a more advanced televisionoffering which melds the two pieces of their business video andbroadband," Chief Executive Tom Rogers told Reuters in aninterview.

TiVo's cable customers include Comcast Corp,Virgin Media Inc, DirecTV, Ono, RCN andSuddenlink.

The company forecast fourth-quarter service and technologyrevenue of $83 million to $85 million and net profit of $2million to $5 million.

Net income fell to $12.5 million, or 10 cents per share inthe third quarter, from $59 million, or 44 cents per share, inthe year-earlier quarter, which included $78.4 million inlitigation proceeds.

Revenue increased to $117.3 million from $82 million.

Analysts on average had expected earnings of 6 cents pershare on revenue of $81.3 million, according to Thomson ReutersI/B/E/S.

The company's shares were trading at $13.34 in extendedtrading. They closed at $13.24 on the Nasdaq on Tuesday.

Rates

View Comments (1)

Recommended for You