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Tivo Q3 Earnings

tivo calcPositive earnings remain elusive for TiVo (Nasdaq:TIVO) but despite turbulent markets, the "time shift" pioneer may be getting ever so slightly closer. After the close or markets Wednesday, Tivo released Q3 earnings. The numbers were somewhere between flat and positive.

For the quarter ended October 31st, Tivo posted a net loss of $8.24m (8c a share), substantially better than a loss of $11.1m (12c a share) for the same period last year. The return was also far better than last quarter which suffered due to inventory write downs. The consensus analyst expectations were for a loss of 13c a share. Tivo beat the street by a penny.

Revenue numbers also improved consecutively over last quarter and the same period last year. Net revenue came in at $75.5m, up from $66m. Service and Technology Revenue (which is revenue minus income from hardware sales) advanced modestly to $52.9m.

As has been a consistent story, important subscriber numbers were less impressive. Total subscriber count for the quarter was down to 4m. Additions to Tivo owned subscribers fell to 69 (vs 101k last year). The monthly churn rate (or rate of customer loss) increased again too, this time to 1.3%.

Tivo executives continued to put a positive on performance and expressed optimism about the rest of the year. CEO Tom Rogers characterized the 3rd quarter as "another solid quarter." He noted adjusted EBIDTA (earnings before interest, depreciation, taxes and amortization) were substantially better than guided. Mr. Rogers also spoke favorably about forward looking business lines. He said TiVo’s ongoing broadband partnerships with Amazon (Unbox video) and Rhapsody were performing well and advertising initiatives, including the just signed deal with NBC, were moving ahead. The general keynote was "progress."

Looking to the fourth quarter in forward guidance, TiVo expects to post another net loss, this time in the range of $9 million to $12 million. Service and Technology revenue is expected at $58 million to $60 million.

More detailed press coverage on Tivo’s finances can be found at:< br />

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