TiVo has hailed its latest results as “a very important milestone”, after reporting its highest-ever quarterly net income this week.
The DVR manufacturer reported net income at US$268.9 million for the second quarter of 2013, compared to a net loss of US$27.7 million in the same quarter a year earlier. It had expected to make a net loss of between US$13 million and US$16 million in the quarter.
The sharp rise follows TiVo’s recent litigation settlements with Cisco and Motorola, which contributed to net income. The Cisco and Motorola settlement – related to the unauthorised use of TiVo’s Time Warp and other patents – accounted for US$490 million, achieving around US$1.6 billion in damages and future consideration.
Net revenues were US$100 million, up from US$65 million last year. Service and technology revenues accounted for US$77.0 million of this, a year-on-year rise of 42%. TiVo said this “exceeds guidance range even before including the Cisco and Motorola settlement”.
TiVo president and CEO Tom Rogers said: “After making significant progress over the last several years, amid scrutiny for not being net income profitable, we believe TiVo has now achieved the milestone of sustained net income profitability.
“As a result of the latest litigation settlements, which will produce significantly increased licensing revenue well into the future and which have substantially increased our cash resources, along with our continued focus on innovation as demonstrated by the highly acclaimed Roamio launch, and the expected continued
growth of our MSO subscription base, TiVo has reached a brand new chapter in its financial performance that puts the company on an entirely new trajectory.”
Mr Rogers said TiVo’s operator business continued to “grow nicely” as both domestic and international cable operators facing increased competition and heightened demand for advanced television services turd to TiVo.
“We’ve added almost one million new TiVo subscriptions from our operator relationships during the last year, and we expect to continue our strong subscription growth as Atlantic Broadband, Cable One, Com Hem, GCI, Midcontinent, and Mediacom have all recently gone live or are close to launching a TiVo solution. Com Hem, the largest operator in Scandinavia, recently soft launched, and will be followed by a much more aggressive marketing push toward the end of the year.
“Beyond the subscription growth potential, this launch is a meaningful strategic milestone for TiVo as it represents our first integration with an IPTV provider,” he said.