Digital video recorder pioneer TiVo Inc. on Tuesday (5/25) reported a net loss in the first quarter — its sixth straight money-losing quarter as the company struggled with higher legal expenses and other costs that wiped out an increase in revenue.
While TiVo has a loyal following among hardcore TV fans who believe its user guide is superior to those offered by cable boxes, the company has had a history of losses typically resulting from higher hardware and research and development costs. Now, a six-year lawsuit against satellite TV company Dish Network Corp. for allegedly infringing on a DVR technology patent is taking a toll on the bottom line.
In recent years, TiVo has been lessening its dependence on DVRs sold directly to consumers as the main source of revenue by licensing its software to subscription TV operators such as cable company Comcast Corp., or letting them use its DVRs as their own, such as the case with RCN Corp., another cable provider. TiVo also has slashed prices on DVRs to consumers and marketed the units through more retailers.
On Tuesday, the company for the first time said it would incorporate its software into Internet-enabled Insignia TV sets, a brand from Best Buy Co. as it staves off competition from the likes of Google TV, a device that hooks up to a set-top box to bring the Web to the television.
“We are trying to make sure that TiVo has every possible path to framing the TV experience,” said CEO Tom Rogers in an interview with The Associated Press.
In the first quarter, TiVo lost $14.2 million, or 13 cents per share, in the quarter that ended April 30. In the same quarter last year it lost $3.9 million, or 4 cents per share.
TiVo incurred higher legal expenses as part of its lawsuit against Dish, a recurring cost that the company said will hurt the second quarter as well.
Revenue rose 11 percent to $61.4 million. Excluding hardware revenue, service and technology revenue came to $43.2 million, down from last year’s $48.5 million.
The results were better than the forecast of analysts surveyed by Thomson Reuters. They were expecting a loss of 16 cents per share and service and technology revenue of $42.8 million.
In the second quarter, TiVo is expecting a net loss of $17 million to $19 million and service and technology revenue of $40 million to $42 million. That would be worse than what analysts have been expecting, which is a loss of $14.6 million and service and technology revenue of $42.6 million.
Rogers said higher legal and R&D costs will hurt profitability in the quarter. Earlier this month, a federal appeals court gave Dish a lifeline after granting a full-court review of a decision by a three-judge panel of the same court that sided with TiVo. If Dish was denied the review, it would have had to cough up $300 million in damages and risked having to disable millions of its DVRs because they were found to have infringed on TiVo’s patent. But TiVo expects to prevail.
Beyoncé’s Halftime Show Highlighted Netflix’s NFL Debut On Xmas Day
Beyoncé provided more excitement than either game during Netflix's NFL debut on Christmas Day.
Riding into her halftime appearance on a white horse, the 32-time Grammy winner rocked her hometown Houston crowd with a nearly 13-minute performance on Wednesday.
She surprised fans by bringing along Shaboozey to perform "Sweet Honey Buckiin" and Post Malone joined her for "Levii's Jeans."
The action on the field didn't live up to expectations as the NFL showcased four of the AFC's top five teams.
Patrick Mahomes and Travis Kelce exposed a glitch in Pittsburgh's defense during Kansas City's 29-10 rout in the first game.
The broadcast itself went off just fine, quickly becoming the second-most popular live title on Netflix to date, according to NFL Media.
Lamar Jackson and the Ravens led C.J. Stroud and the Texans to 17-2 at halftime before Beyoncé stole the show.
Mariah Carey opened Wednesday's doubleheader with a taped performance of "All I Want for Christmas is You" and then the two-time defending Super Bowl champion Chiefs trounced the Steelers to clinch the No. 1 seed in the AFC.
There were no signs of any major streaming issues during the game after Netflix experienced minor blunders at the start of the pregame show. The broadcast opened with roughly 10 seconds of silence because it appeared studio host Kay Adams' microphone wasn't turned on.
Beyoncé's live performance at NRG Stadium was supposed to be the biggest test for the streaming giant and it seemed to go off without a hitch.
Mahomes threw for 320 yards and three touchdowns and Kelce had eight catches for 84 yards and one score as the Chiefs (15-1) earned a first-round bye and home-field advantage throughout the AFC playoffs. The... Read More