TiVo (TIVO) Earnings Rise on Lawsuit Settlements

Shares of TiVo Inc. (TIVO) closed down -0.18 or -1.61 percent to $10.97 per share on Tuesday. The company announced better than expected second quarter earnings after the close, pushing the stock up +2.0 percent to $11.19 per share in afterhours trading. Thanks to the settlement of several lawsuits, the company posted net income of $268.9 million or $1.96 per share, versus a loss of -$27.7 million or -0.23 per share in the same period one year ago.

Excluding the settlements, TiVo posted a loss of -$13.1 million. Daily Chart
Alviso, California based TiVo Inc. was founded in 1997 as "Teleworld Inc." and primarily manufactures and distributes digital video recorders or DVRs. The company first turned a profit in the second quarter of 2005. TiVo Inc. has been posting losses since the second half of 2009, finally turning a profit in the most recent quarter thanks to settling litigation with Cisco Systems (CSCO) and Motorola (owned by Google (GOOG). TiVo stated it would receive a total of $490 million from the settlement of patent litigation with both Cisco and Google. In June, TiVo reached settlements with Dish Network Corp, (DISH), AT&T Inc. (T), Verizon Communications Inc. (VZ) and EchoStar Corp. (SATS). The total for TiVo's successful litigation comes to around $1.6 billion so far. Second quarter revenues came to $77.0 million, versus $54.1 million in the same quarter one year ago. The company's guidance was for revenue of $68 to $70 million. Adjusted EBITDA came to $115.4 million, versus a loss of -$15.8 million in 2012's second quarter. TiVo's guidance was for a profit of +$1 million to a loss of -$2 million. After the earnings release, TiVo CEO Tom Rogers stated, "TiVo has reached a brand new chapter in its financial performance that puts the Company on an entirely new trajectory." He continued, "This was a very strong quarter for our business. We recorded the highest revenue and highest profit ever, continued positive momentum in our operator business, launched the new TiVo Roamio, which includes significant product enhancements that benefit both our retail and operator businesses, and we brought our pending litigation with Cisco and Motorola to an end, significantly strengthening our financial profile." In addition to the improved earnings, the company's total subscriptions came to 3.6 million, an improvement of +33 percent over the same period one year ago. TiVo stock has been trading in the low end of a range since last October. With news of the recent turnaround, the stock could easily see higher levels. Other News About TIVO New Roamio: TiVo on the Go TiVo's latest box. TiVo Management Discusses Q2 2014 Results Transcript of conference call. Other Stocks in the News Google's All Grown Up and That's Too Bad Company has become the epitome of Big Data. 'London Whale' Penalties Put at $500 Million to $600 Million WSJ article on possible fines to be levied on JP Morgan. Copyright 2013 by InvestorGuide.com, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA InvestorGuide.com, Inc.) or its employees responsible.

Published on Aug 28, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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