SAN JOSE, Calif. (AP) — Shares of TiVo Inc. fell 5 percent as the maker of digital video recorders posted a narrower third-quarter loss on modest subscriber gains but forecast a wider loss for the current quarter. The Alviso-based company reported a quarterly loss of $11.1 million, or 12 cents per share, for the three […]
SAN JOSE, Calif. (AP) — Shares of TiVo Inc. fell 5 percent as the maker of digital video recorders posted a narrower third-quarter loss on modest subscriber gains but forecast a wider loss for the current quarter.
The Alviso-based company reported a quarterly loss of $11.1 million, or 12 cents per share, for the three months ending Oct. 31. In the same period last year, TiVo’s net loss was $14.2 million, or 17 cents per share.
Net revenues climbed to $65.6 million from $49.6 million a year ago. Excluding hardware sales, service and technology revenue rose 22 percent to $52.6 million, compared with $43.2 million for the year-ago period.
Analysts, on average, were expecting a loss of 15 cents per share on service and technology revenue of $54.7 million, according to a survey by Thomson Financial.
TiVo said the number of subscribers, including those attained through a partnership with DirecTV Group Inc., grew to 4.4 million in the quarter, up 11 percent from a year ago.
TiVo shares rose a penny to close at $6.29 on the Nasdaq Stock Market but slid to $5.97 in extended trading after the company issued its quarterly results and lower-than-expected outlook Wednesday.
Due to greater hardware rebates in the holiday shopping season, the company projected a net loss of $33 million to $38 million in its fiscal fourth quarter, compared with a loss of $21.1 million a year ago. It expects service and technology revenue of $54 million to $55 million.
Analysts, on average, were projecting a net loss of $23.4 million on service and technology revenue of $61.2 million.
TiVo officials said they are still evaluating a mix of pricing and marketing moves to achieve a balanced growth strategy. For instance, it recently raised its monthly service fee from $12.95 to $19.95 under a 1-year plan and began offering its low-end, single-tuner TiVo machine for free with a service contract.
TiVo, which has yet to become profitable, introduced a series of new features in the past year to compete against rival DVR offerings from cable and satellite TV providers.
“Given our efforts to differentiate TiVo, we are pleased that we were able to build momentum relative to last year,” said Tom Rogers, TiVo’s chief executive, citing how TiVo gained 101,000 subscribers outside of its DirecTV partnership in the quarter.
Revenues from advertising are also expected to grow, the company said.
On Tuesday, TiVo announced an expansion of its advertising services so companies could present their ads at the end of recorded programs, when viewers no longer have anything through which to fast forward but could choose to watch the commercial.
Some time next year, TiVo expects Comcast Corp. to start deploying cable set-top-boxes that offer TiVo as a premium DVR service. The success of TiVo’s deal with Comcast, the nation’s largest cable operator, is considered by many industry observers to be a key component in TiVo’s future.
TiVo announced Wednesday that Cablevision Mexico, Mexico’s largest cable operator, had agreed to distribute TiVo boxes and its subscription service to Mexico City customers. It would mark the first Spanish-language version of TiVo’s software and is a sign of more international agreements to come, Rogers said.
Meanwhile, the DVR pioneer remains locked in a patent dispute with satellite television operator EchoStar Communication Corp.
In April, a federal court jury found that EchoStar made and sold DVRs that infringed on Tivo’s patented technology for pausing live television and recording one show while watching another. The trial judge ordered EchoStar to pay $89.6 million in damages—more than the $74 million the jury had awarded, but the order was put on hold pending an appeal.
A victory for TiVo in that case could boost its licensing revenues as the market for DVRs grows.