Television service provider TiVo Inc. (TIVO), Monday reported a wider net loss for the fourth quarter, hurt by lower subscription additions, and higher operating expenses. Looking ahead, the company provided revenue outlook for the first quarter, which is estimated to come in below current Street consensus.
The Alviso, California-based company reported a net loss of $10.2 million or $0.09 per share for the fourth quarter, compared to a loss of $3.6 million or $0.04 per share in the prior year quarter. On average, 9 analysts polled by Thomson Reuters expected the company to report a loss of $0.12 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Fourth quarter net revenues increased 16% to $68.5 million from $59.2 million in the year-ago quarter. However, service and technology revenues fell about 7% to $45.3 million from $48.5 million in the previous year quarter. Six analysts had a consensus revenue estimate of $47.45 million for the fourth quarter.
Hardware revenues for the quarter jumped to $23.2 million from $10.7 million over a year earlier.
TiVo-owned subscription gross additions were around 46,000 for the fourth quarter, down from 59,000 gross additions in the year-ago quarter.
The TiVo-owned monthly churn rate was a drop of 2.6%, compared to a 1.3% decrease last year.
TiVo-owned Average Revenue Per Subscription or ARPU per month dropped to $7.58 from $7.85 in the prior year quarter.
Overall, TiVo-owned subscriptions ended the quarter at 1.47 million. Cumulative total subscriptions were about 2.61 million.
Total cost of revenues increased to $43.3 million from $29.7 million, and research and development expenses rose to $18.2 million from $15.5 million a year ago.
Last week, the company introduced its next-generation TiVo user interface, which seamlessly converges broadband and high definition linear television.
Earlier this month, the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. fully affirmed a previous ruling that ordered permanent injunction against EchoStar related to an on-going infringement of TiVo's Time Warp patent.
The Appeals court's ruling paves way for TiVo to collect the previously awarded about $300 million in damages and contempt sanctions for EchoStar's continued infringement through July 1st, 2009, bringing the total awards related to this case to date to about $400 million.
TiVo said it would seek additional compensation for continued infringement for the period after July 1, 2009.
Further, TiVo said it will launch its advanced television solution for RCN soon in the second quarter of this year, and as a result, RCN customers will have full access to a universal cable box, a vast collection of content from broadband sources, a significant VOD library, and a diverse music jukebox.
For fiscal 2010, the company reported a net loss of $23.9 million or $0.23 per share, compared to net income of $103.6 million or $1.01 per share in the previous year.
Annual net revenues dropped to $237.6 million from $249.7 million, while service and technology revenues decreased to $189.7 million from $208.5 million over a year ago.
Analysts expected the company to report a loss of $0.25 per share on revenue of $195.63 million for the year.
For the first quarter of fiscal 2011, TiVo anticipates a net loss in the range of $19 million to $21 million, and service and technology revenues in the range of $41 million to $43 million. The Street expects a loss of $0.05 per share on revenue of $48.81 million for the first quarter.
Among TiVo's rivals, Englewood, Colorado-based Dish Network Corp. (DISH) reported a decline in fourth-quarter profit, notwithstanding an improvement in revenues and almost a quarter-million increase in net subscribers.
Another peer, Philadelphia, Pennsylvania-based Comcast Corp. (CMCSA,CMCSK) posted a fourth-quarter profit that more than doubled from last year, bolstered by higher revenues and tax benefits.
TiVo closed Monday's regular trading at $17.08, down 42 cents or 2.40%, on a volume of 11.21 million shares. In after-hours, the stock gained 8 cents. The stock has been moving in a range of $6.06- $17.98 for the past 52 weeks, with a three-month average daily volume of about 3.46 million shares in the past three months.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.