TiVo Reveals Comcast Tab
According to a TiVo 10-Q filed yesterday, the company recognized $10.9 million in technology revenues from Comcast. However, $7 million of that total was chewed up by the cost of those technology revenues, which hit $9.6 million in the same nine-month period a year earlier. (See TiVo Still Seeking Cable Payoff .)
In terms of individual accounts receivable concentrations for the nine-month period, only Best Buy Co. Inc. (NYSE: BBY) (22 percent) accounted for more than Comcast did, followed by DirecTV Group Inc. (NYSE: DTV) (17 percent), and Seven Network Ltd. of Australia (11 percent). About 31 percent those concentrations were derived from a more diverse "other customers" category.
Comcast has introduced the TiVo service on Motorola Inc. (NYSE: MOT)-made set-tops in its New England division, including metro Boston, Southeast Massachusetts, New Hampshire, and Connecticut. (See Comcast Expands TiVo Footprint .) Comcast's Chicago system, which also uses the Motorola platform, is expected to introduce the TiVo product early next year. (See Chi-Town Bound?)
TiVo forged the original deal in March 2005 with Comcast STB Software DVR LLC, a wholly owned subsidiary of Comcast, and it appears the two will be working together for the long-haul.
The initial term of the deal expires on June 30, 2014, but, as amended, the agreement provides for eight additional one-year renewals beyond 2014, "with certain deployment thresholds [albeit undisclosed] beginning after June 30, 2019."
TiVo's other major domestic cable partner, Cox Communications Inc. , has been testing the TiVo-Moto combo in New England, but likely won't reach commercial launch status until the first half of TiVo's next fiscal year, according to the 10-Q. (See Cox Tees Up TiVo Test Bed .)
More on TiVo job cuts
TiVo's filing also shed more light on a recently disclosed plan to lay off 7 percent of its staff, a decision that will result in pre-tax charges of roughly $1 million in the fiscal fourth quarter linked to severance benefits and out-placement costs. The company didn't release this element earlier but confirmed that headcount will be reduced by 38 employees.
— Jeff Baumgartner, Site Editor, Cable Digital News