TiVo Revs Up 26%
TiVo posted a 26% revenue gain to $82 million in the third quarter, ended Oct. 31, with net income of $59 million versus a loss of $25 million last year.
The company’s performance was enhanced by a legal agreement under which Verizon agreed to pay TiVo $250 million to settle a patent infringement lawsuit.
For the first nine months, the company’s revenues totaled $215 million, up 26% with net profits of $10.5 million, down from $95 million for the first nine months of the company’s current fiscal year.
The Verizon settlement was the third major settlement achieved by TiVo in the last year, bringing total legal settlements to $1 billion, according to the company. Earlier, the company settled with both AT&T and satellite operator EchoStar. A patent lawsuit against Motorola is set to go to trial next May.
On a call with investors and analysts late Wednesday, company executives said that the Verizon settlement could increase, depending on subscriber growth of Verizon’s Fios pay TV service. A little under $80 million of that settlement was recognized in TiVo’s third quarter. The balance will be paid and attributed to future quarters.
Next year, the company said it should be profitable (before interest, taxes, amortization and depreciation) for the full year, including legal settlement fees. “We’re turning the corner," declared company CEO Tom Rodgers.
“We continue to see impressive subscription growth” for the company’s advanced TV offerings to cable and satellite customers worldwide, Rodgers said.