Earnings: TiVo Q2 Loss Edges Slightly Higher; Fires Lawsuit At AT&T and Verizon


TiVo’s net income loss was slightly higher in Q2, widening to $2.93 million ($0.03 per share) from $2.91 last year. Revenues also dipped, falling to $57.3 million from $65.2 million in Q208. Not great news by any stretch, but the DVR company did beat analysts estimates who expected a loss of $0.05 per share (via MarketWatch). In a separate announcement, TiVo (NSDQ: TIVO) said it was suing AT&T (NYSE: T) and Verizon (NYSE: VZ) over the violation of patents it owns for its DVR service. The company is seeking a permanent injunction against the two telcos from operating their respective DVR offerings. TiVo specifically cited the case it won against EchoStar (NSDQ: SATS) in Texas over similar charges of patent infringement concerning EchoStar’s DVR. EchoStar said it would appeal that ruling, which ordered the Dish Network operator to pay TiVo over $203 million. The new suit was filed in the same U.S. District Court for the Eastern District of Texas that decided the EchoStar matter.

2Q 2009 2Q 2008 Analysts Estimates For 2009
EPS $0.03 $0.03 $0.05
Net Income -$2.93M -$2.91M NA
Revenue $57.3M $65.2M NA

Earnings release | Webcast (5:00 PM EDT)

Outlook for Q3: Getting back to the company’s earnings report, TiVo is projecting a loss ranging from about $8 million to $10 million. Service and technology revenues were $48.8 million in Q2, compared with $53.5 million last year and $48.5 million for Q109. For Q3, TiVo anticipates service and technology revenues to be between $46 million to $48 million.

Subscriptions: TiVo added 31,000 new subscriptions in Q2, a little less than the 36,000 gross additions for the same period last year. In total, TiVo finished Q2 with 1.6 million. Monthly churn rate was about 1.5 percent. Despite highly-touted alliances with retailer Best Buy and DirectTV, TiVo has a lot to worry about from the DVR rollouts of new rivals like AT&T and Verizon. So far, TiVo has shown that it can prevail in court. But it has been fighting EchoStar since 2004. By all indications the fight with AT&T and Verizon is happening now and TiVo doesn’t have five years or so to beat its challengers back through the legal system.

Comments are closed.