The DVR-maker benefits in the third quarter from a $105 million settlement for a suit claiming patent violations, but revenue declines nearly 15%.
NEW YORK (AP) -- TiVo Inc. recorded a profit for its latest quarter because of a $105 million settlement it received in a patent suit, but revenue declined, the maker of digital video recorders said Tuesday.
Alviso, Calif.-based TiVo earned $100.6 million, or 98 cents per share, in the fiscal third quarter, which ended Oct. 31. That compares with a loss of $8.2 million, or 8 cents per share, in the same quarter last year.
Analysts polled by Thomson Reuters had expected a loss of 6 cents per share, but generally exclude items like payouts from lawsuits. TiVo received the $105 million in October from Dish Network Corp., which it had sued in 2004, alleging that Dish's video recorders violated a patent.
TiVo's revenue declined almost 15% to $64.5 million in the quarter. Subscription and technology revenue, excluding hardware sales, fell 11% to $51.7 million.
Analysts were expecting $50.7 million in service and technology revenue.
TiVo had 3.5 million total subscriptions as of the end of October, a decline from the 3.6 million it reported in the second quarter and the 4.1 million it had in the third quarter of last year.
During the quarter, the company said it would roll out a new high-definition video recorder through an extended deal with DirecTV Group Inc. (DTV, Fortune 500) TiVo has other distribution deals with cable companies Comcast Corp. (CMCSA, Fortune 500) and Cox Communications Inc.
TiVo said Tuesday that it is still working with retailers and consumer-electronics makers to bundle digital video recorders with sales of high-definition TV sets.
In a phone interview, TiVo Chief Executive Tom Rogers said the company's sales of stand-alone TiVo boxes were "holding up pretty decently" until the second half of the quarter.
"We're not quite sure, nor is anybody, how this holiday season is going to play out," he said.
Looking ahead, TiVo predicted fourth-quarter service and technology revenue of $47 million to $49 million and a loss of $10 million to $12 million.
Analysts had been looking for $55.5 million in service and technology revenue.
TiVo (TIVO) shares rose 17 cents, or 3.8%, in after-hours trading, after finishing regular trading down 22 cents, or 4.7%, at $4.43.
0 Response to "TiVo profit up on Dish settlement"