TiVo Reports Weaker-Than-Expected Q1 Results
Shares of TiVo slipped 3 percent in after-hours trading Wednesday when the company reported weak guidance due to mounting legal costs associated with protecting its DVR patents from alleged infringers, particularly Verizon, Time Warner Cable and Motorola.
TiVo also reported weaker-than-expected results for its fiscal first quarter, including a net loss of $21 million whereas the company recorded net income of $139 million in the same quarter last year when it received a $176 million payment from Dish Network that was also due to a patent-infringement lawsuit.
Revenue rose 48 percent to $68 million as TiVo added 524,000 subscribers to a total of 2.5 million, most of which come by way of licensing deals with Multiple Systems Operators.
While TiVo beat the expectations of analysts on the revenue front, its guidance for a second-quarter loss of up to $30 million spooked some investors who were looking for about a $16 million loss.
TiVo shares fell 28 cents to $8.96 during the regular session and another 27 cents in after-hours trading.