UPDATE 2-TiVo swings to Q3 profit on litigation award

* Q3 EPS 98 cents, includes $105 mln in litigation damages

* Q3 adjusted EPS loss 1 cent vs Wall St view loss 6 cents

* Sees Q4 net loss $10 mln-$12 mln

* Shares up nearly 4 pct (Adds CEO interview)

By Gabriel Madway

SAN FRANCISCO, Nov 25 (Reuters) - TiVo Inc (TIVO.O) said on Tuesday its quarterly revenue fell 15 percent but the digital video recording company posted a profit on a big litigation award against EchoStar.

TiVo's shares rose nearly 4 percent in extended trading, after falling 4.7 percent in the regular session on Nasdaq.

In an interview, Chief Executive Tom Rogers called the third quarter "by far" the best in the company's history, but warned that the January quarter will be a difficult one for the consumer electronics industry.

He noted that Best Buy Co (BBY.N), which is TiVo's major retail partner, has issued a grim outlook about holiday sales, and said that, along with Circuit City Stores' (CCTYQ.PK) bankruptcy filing, doesn't bode well for the end of the year.

Last week, TiVo said it would cut an unspecified number of jobs in a move to reduce expenses. Rogers said on Tuesday the job cuts amount to 7 percent of its workforce.

TiVo said net profit was $100.6 million, or 98 cents a share, in its fiscal third quarter ended Oct. 31, versus a loss of $8.3 million, or 8 cents a share, in the year-ago period.

Excluding $105 million in litigation damages from EchoStar Corp (SATS.O), the company lost a penny a share, according to Reuters Estimates, better than the average analyst estimate for a loss of 6 cents.

Total revenue dropped to $64.5 million from $75.5 million. Service and technology revenues totaled $51.7 million, down from $58.3 million a year ago.

TiVo has been struggling to find new areas of growth, boost new subscribers and fend off competition from generic DVRs offered by cable and satellite providers. The company has been locked in heated patent litigation with EchoStar, over the DVRs that satellite providers offer to customers.

Overall, TiVo-owned subscriptions ended the quarter at roughly 1.7 million. Gross subscriber additions were 44,000, compared with 69,000 last year. The churn rate was 1.4 percent, up from 1.3 percent last year.

Rogers said the company spent half of what it did a year ago on subscription acquisition costs. Subscriber additions held up fairly well in the first six weeks of the quarter, he said, before the financial crisis set in.