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
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Published on Aug 28, 2013
By Jay Hawk