TiVo's revenue rises, adds new subscribers

Thu Feb 23, 2012 5:55pm EST

(Reuters) - TiVo Inc added 234,000 new subscribers in the fourth quarter as the maker of digital television recorders sold more of its products through agreements with cable operators.

Chief Executive Tom Rogers said the fourth quarter marked the greatest quarterly increase in subscribers through its operating partners in six years. While TiVo still sells its own set-top boxes, it now licenses its technology to cable operators such as Virgin Media, Charter, DirecTV, Ono, RCN and Suddenlink.

The company has more deals on the horizon, Rogers said in an interview.

"We're still at a very nascent stage of the deals we've announced and we think we have a lot more deals to secure out there as cable operators know they need to make this transition," he said.

A big part of TiVo's business relies on money it generates from settlements it receives protecting its intellectual property related to technology for recording television.

In January, AT&T Inc agreed to pay TiVo a minimum of $215 million and additional monthly licensing fees to settle a patent infringement dispute.

The same patents involved in the case are a part of a lawsuit TiVo is embroiled in with AT&T's competitor, Verizon. Rogers said on Thursday that the case should go to trial in Texas by the end of the year.

For the three months ended January 31, the company reported revenue of $66.47 million, up from $55.8 million a year ago.

Revenue for service and technology was $50 million, compared with analysts' estimates of $50.89 million, according to Thomson-Reuters I/B/E/S.

It posted net income of $7.19 million, or 6 cents a share, compared with a loss of $35.39 million or a loss of 30 cents a share a year ago.

For the first quarter, TiVo forecast a net loss between $18 million and $20 million on revenue of $53 million to $55 million.

Shares were flat in after-hours trading on the Nasdaq at $12.

(Reporting by Liana B. Baker in New York; Editing by Phil Berlowitz and Matthew Lewis)

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