TiVo revenue declines in Q1
Firm says EchoStar lawsuit costs affected bottom lineDVR pioneer TiVo reported a $4.1 million net loss for the fiscal first quarter on a 10% revenue decline to $54.9 million. Net profits during the year-ago period were $3.6 million.
For the same period, which ended April 30, the company reported a 54% drop in adjusted earnings before interest, taxes, depreciation and amortization to $5.1 million.
TiVo previously indicated that its loss for the quarter could be $6 million, with adjusted EBITDA as low as break-even.
The company cited the economy, which it said has "hit the consumer-electronics industry particularly hard," as a factor in its weaker results, as well as costs related to its copyright-infringement suit against EchoStar. (TiVo said it expects a decision on that soon.)
Nonetheless, CEO Tom Rogers put a positive spin on the quarter during a call with analysts.
"We kicked off fiscal year 2010 with solid first-quarter results, recording our seventh straight quarter of adjusted EBITDA profitability," he said.
The company also cited several growth initiatives, including a deal with Blockbuster to deliver movies to TV and sell DVRs in stores and an agreement to launch its Comcast DVR With TiVo service soon in Chicago.
Rogers told analysts the company is making a major push to get consumers to understand that a TiVo DVR offers a "much broader experience" than the "generic" DVRs offered by cable operators.
The company also is preparing to provide set-top-box ratings for local TV markets in the summer. Rogers said that TiVo is speaking with numerous local broadcasters about the service, but declined to identify them.
Rogers described the company's balance sheet as "strong," with $200 million in cash and no debt.