Tivo Strategic Review Continues

That's corporate speak for seeking a sale.

May 10, 2018

4 Min Read

SAN JOSE, Calif. -- TiVo Corporation (NASDAQ: TIVO) today reported financial results for the first quarter ended March 31, 2018.

“TiVo had a solid Q1 and made progress on the strategic objectives we laid out last quarter,” said Enrique Rodriguez, President and CEO of TiVo. “We improved on our execution and drove profitable growth in our core business. In the quarter, we grew our customer base in our key market segments and made our next gen TiVo Experience 4 solution available to our MSO customers. Internationally, we expanded our presence by adding new service provider licensees in Asia and Europe. The company made meaningful progress on our goal to deliver consistent long-term growth by capitalizing on the market opportunity in front of us. This quarter, we achieved the original target of realizing $100 million in integration synergies and we will complete our extended goal of $110 million of synergies by the end of Q2.”



  • Approximately 22 million subscriber households around the world use TiVo’s advanced television experiences.

    • Cogeco, RCN and Mediacom are deploying TiVo’s new IP VOD solution.

    • RCN and Service Electric, as previously mentioned, selected TiVo’s Next-Gen Platform to power their IPTV solutions with hyper-personalization, advanced search and recommendations, voice control and seamless discovery across linear, over-the-top, on-demand and cloud-DVR platforms. RCN’s deployment will include TiVo’s first IPTV deployment on the Android TV platform.

    • Mediacom extended its TiVo product and IP agreements, including TiVo DVRs, TiVo Minis, classic guides, analytics and IP.

    • Google and YouTube selected TiVo Music Metadata to provide select artist metadata and artist images for YouTube Red, YouTube Music and the Google Play Music store.

    • 7digital, a UK-based global provider of end-to-end digital music solutions, licensed TiVo’s Music, Inform and Discover Metadata solutions to include in their customer offerings.

    • Scripps Network is the second customer to deploy TiVo’s Targeted Audience Delivery (TAD).

    • IP Licensing:

    • VIZIO renewed its patent license agreement with a multi-year renewal, to extend the leading TV manufacturer’s use of TiVo’s patent portfolios.

    • Starz signed a long-term license to the TiVo patent portfolios.

    • Alticast, a leading end-to-end media technology provider in Korea, renewed its IP license agreement.

    • Internationally, we entered into new patent license agreements with Telstra in Australia and a top European service provider. We also renewed our patent license agreements with Argos and KDDI.


      As announced in TiVo’s Q4 2017 earnings release and its related earnings call, we are continuing to explore a broad range of strategic alternatives to maximize the value of the Company and best deliver value to our shareholders. We expect to provide an update on this exploration process no later than our Q2 2018 earnings call.


      Effective January 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which superseded the previous revenue recognition requirements. As a result of adopting the new revenue standard, we recognized approximately $3.7 million more in revenue in the first quarter of 2018 than we would have under the previous requirements. However, as mentioned in our fourth quarter 2017 earnings release, we expect we will recognize approximately $30.0 million less in revenue for the full year 2018, than we would have under the previous requirements. The impact is largely related to the legacy TiVo Time Warp intellectual property licenses, which expire in mid-2018, for which we recognized approximately $8.9 million in revenue in the first quarter of 2018. We expect to recognize approximately $8.4 million and $2.8 million in revenue related to the legacy TiVo Time Warp intellectual property licenses in the second and third quarters of 2018, respectively.


      On May 9, 2018, TiVo’s Board of Directors declared a cash dividend of $0.18 per common share, to be paid on June 20, 2018 to all stockholders of record as of the close of business on June 6, 2018.


      As mentioned above, TiVo’s management and board are conducting an in-depth review of its businesses, cost structure and strategic options to maximize shareholder value. Due to the broad range of potential outcomes, the Company is not providing financial estimates for fiscal 2018 at this time.

      TiVo Inc. (Nasdaq: TIVO)

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