Nov 28 (Reuters) - Video recorder pioneer TiVo Inc forecast net loss for the current quarter even as legal costs stay high due to patent lawsuits against Google Inc’s Motorola Mobility Inc and Cisco Systems Inc.
Shares of TiVo fell 3 percent to $10.55 in extended trading on Wednesday. They closed at $10.85 on the Nasdaq.
TiVo reported its first profit in three quarters as it recorded a gain related to a patent litigation settlement with Verizon Communications Inc, which will pay the company at least $250.4 million through July 2018.
“Litigation costs are going to remain at an elevated level for a while,” Chief Executive Tom Rogers told Reuters.
Litigation spending in the current quarter will be slightly lower than the $9.5 million the company incurred in the third quarter, Chief Financial Officer Anna Brunelle said on a conference call.
TiVo forecast fourth-quarter net loss of $15 million to $17 million. Excluding litigation costs, it expects to be profitable on an adjusted EBITDA basis.
Third-quarter net income was $59 million, or 44 cents per share, compared with net loss of $24.5 million, or 21 cents per share, a year earlier.
Revenue rose about 27 percent to $82 million as subscriptions rose 44 percent.