TiVo’s first-quarter loss of $0.17 a share was wider than the analyst expectations of $0.15 cents a share. TiVo also announced that it expected a second quarter loss of $28 million to $30 million and service and technology revenue of $53 to $55 million. Previously, analysts had expected a loss of $16 million, almost doubled in current expected losses. The majority of the loss is associated with litigation expenses in TiVo’s lawsuit with Verizon Communication (VZ) over patent copyrights. The California based DVR provider has seen major losses over the past few years as rising costs and increasing competition from cable companies and on demand services continue to pressure TiVo’s bottom line.
For the period ending April 30, TiVo reported a loss of $20.8 million, or $0.17 a share. Compared to the previous year’s profits of $139 million, or $1.04 a share, TiVo has significantly increased costs against their bottom line. Net revenue rose 48% to $67.8 million, while service-and-technology revenue climbed 40% to $54.5 million. Gross margin widened to 51.1% from to 46.1%. TiVo has not issued dividends in more than two years.
Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com
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