TiVo posts 2Q profit on settlement payment
TiVo posts 2nd-quarter profit on $490M settlement, says it believes it will sustain profits
SAN JOSE, Calif. (AP) -- TiVo reported a large second-quarter profit Tuesday after Google and Cisco paid it $490 million to settle a patent dispute.
TiVo has been suing pay TV companies, saying that they are using its patented technology in DVRs. The company reported a loss if the settlement payments and other one-time items are excluded, but TiVo said it believes it has now achieved sustained profitability. It has reported losses in almost every year over the last decade.
TiVo Inc. posted net income of $268.9 million, or $1.96 per share. Excluding the settlement payments and other items, TiVo said it lost $13.1 million. Revenue increased 53 percent, to $100.1 million from $65.3 million.
Analysts were expecting a loss of 10 cents per share and $91.1 million in revenue, according to FactSet.
TiVo reported a loss of $27.7 million, or 23 cents per share, a year ago.
TiVo said its technology revenue nearly doubled to $42.1 million and hardware revenue doubled to $23.1 million in the quarter ended July 31. Its service revenue rose to $34.9 million from $32.3 million. The legal settlements added about $6.1 million to its service and technology revenue.
TiVo said it had 3.6 million total subscriptions at the end of the quarter, up 33 percent from a year ago.
The company's stock fell 18 cents to $10.97 on Tuesday. TiVo shares gained 11 cents to $11.08 in aftermarket trading following the release of the earnings report.
