TiVo Posts Record Profits Due to Patent Settlement With Dish
Net earnings soar to $139 million even as subscribers shrink to 2 million.
TiVo continued to shed subscribers in its most recent quarter, but it scored record profits courtesy of a patent settlement with Dish Network.
TiVo said Tuesday its subscription ranks fell 22% from a year ago to 2 million.
Nevertheless, the company earned $139 million in its fiscal first quarter, reversing a $14.2 million loss a year ago. Revenue declined 26% to $46 million.
The company posted $175.7 million in “litigation proceeds” in the quarter, and CEO Tom Rogers said Dish will eventually pay more than $600 million “for use of our Time Warp patent.”
Rogers boasted Tuesday that Dish agreed to “one of the largest technology patent settlements of all time,” and he reminded investors and analysts that similar lawsuits are still pending against AT&T, Microsoft and Verizon.
Shares of TiVo rose fractionally Tuesday to $9.41 and were unchanged in after-hours trading when its results were released.