A major legal settlement pushed TiVo Inc. earnings sky high to nearly $269 million in the second quarter, while strong cable revenues offset retail subscription losses.
In its latest earnings release, TiVo reported quarterly revenue from technology and services of nearly $77 million. Stripping out the effect of the legal settlement with Cisco Systems Inc. and Motorola (now Arris Group Inc.), that number drops to just under $71 million. The settled lawsuit will continue to deliver cash in the future, however. The total settlement amounts to $490 million, including infringement and interest fees, and future licensing payments.
Ironically, given TiVo's start in the world, cable subscriptions now make up the bulk of the DVR company's business. TiVo added 238,000 cable subs in the second quarter, a jump of 33 percent to 3.6 million. This year alone, TiVo has introduced the TiVo Mini to cable operators, partnered with Pace to deliver a TiVo-powered gateway, and demonstrated its own TV Everywhere web portal for service operators. (See Suddenlink Rolls Out TiVo Mini and GCI, Pace Boost TiVo's Software Aspirations.)
The web portal has yet to launch with any customers, but Dave Zatz of Zatz Not Funny recently uncovered a generic PDF of an operator-branded web portal on TiVo's updated company website, suggesting the product is well established.
Meanwhile, TiVo's retail business is faltering. The company lost 26,000 retail subscribers in the second quarter, dropping its total just below 1 million customers. TiVo hopes to recover from its losses with the launch of the TiVo Roamio line of DVRs. The new set-tops have been highly praised in early reviews. (See New TiVo DVRs Top Cable Efforts.)
— Mari Silbey, Special to Light Reading Cable