DVR maker TiVo swings to first-ever quarterly profit

|

Digital video recorder pioneer TiVo on Wednesday posted a small net profit in its fiscal first quarter - its first quarterly profit - as revenue increased, beating Wall Street expectations.

The San Jose company has increased subscription fees and cut rebates on equipment purchases.

“They seem to be reining in costs,” Todd Mitchell, an analyst with Kaufman Bros. in New York, said in an interview. “It’s a solid quarter financially.”

Subscribers declined 1.7 percent to 4.34 million as the number of TiVo customers signed up through the DirecTV satellite service declined. But new subscribers from Comcast starting in August will begin to replace the lost DirecTV users, Chief Executive Tom Rogers said.

TiVo’s DirecTV customers fell to 2.62 million from 2.88 million a year earlier. So-called TiVo-owned customers increased 12 percent to 1.73 million from 1.54 million, the company said.

“We reduced the subsidy on the box,” Rogers said Wednesday in an interview. The drop in subscribers also reflected the absence of “concerted marketing,” he said. In addition, TiVo has raised prices, with subscribers paying an average of $13 a month compared with $10 a month early last year, he said.

For the quarter ended April 30, the company posted a profit of $835,000, or a penny a share, compared with a loss of $10.7 million, or 13 cents a share, in the same period a year ago.

Revenue rose 6 percent to $60.4 million from $56.8 million, with service revenue up 15 percent to $54.2 million.

Analysts, on average, expected a loss of 2 cents a share on sales of $58.4 million, according to a poll by Thomson Financial.

TiVo said it expects to post a second-quarter net loss in the range of $5 million to $8 million.

Shares of TiVo rose 25 cents, or 4.1 percent, to $6.36 in regular trading Wednesday before the report was released.

The Associated Press and Bloomberg News contributed to this report.  

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a comment

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>