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Record profits courtesy of EchoStar

TiVo was one of the first names in DVR technology and introduced many to the concept of not having to learn to program a VCR. DVRs are now ubiquitous devices that are so ingrained into our daily lives that many can't live without them.

TiVo has announced its financials for Q3 2008 ending October 31. Highlights for the quarter according to TiVo include $105 million in damages resulting from litigation with EchoStar. Net income for the quarter was $100.6 million compared to a new loss of $8.3 million the same quarter a year ago.

Other important TiVo events in the quarter that helped its record setting profits was partnering with Netflix on movie streaming, Comcast rolling out TiVo service to more markets and an extended distribution agreement with DirecTV. Extending the DirecTV agreement puts TiVo in partnerships with three of the top five TV distributors in America.

TiVo president and CEO Tom Rogers said in a statement, "This was another solid quarter for TiVo, our fifth straight of Adjusted EBITDA profitability and we are well on our way to delivering our first Adjusted EBITDA positive year. Our strong balance sheet, consisting of over $200 million in cash and short term investments and no debt, along with our continued solid financial performance and the progress we have made on our strategic content and distribution relationships, positions us well for the future."

Service and technology revenues for the quarter were $51.7 million, a drop for Q3 2007 where TiVo raked in $58.3 million. EchoStar is the reason for record profits at TiVo. Had the EchoStar award not been received TiVo would have posted a loss of $0.9 million. TiVo says it added 44,000 subscriptions during the quarter compared to 69,000 gross additions a year ago.

Take away that large settlement and TiVo is losing ground not gaining, though some of that could be blamed on the economy.



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RE: Profits
By Regs on 11/26/2008 12:40:18 PM , Rating: 2
"Shares of digital-video-recorder company TiVo Inc. fell as much as 20% Friday on news that satellite provider EchoStar can continue to offer its own DVRs to subscribers until at least February 2009, despite an injunction obtained by TiVo ordering EchoStar to turn them off."

"In January 2008, the U.S. Court of Appeals for the Federal Circuit unanimously ruled that TiVo be awarded full damages, and that the injunction ordering EchoStar to stop deploying its DVRs be reinstated.

But EchoStar continued to deploy its DVRs, claiming that it had made an adjustment to its software that doesn't infringe on TiVo's patents. TiVo subsequently asked that EchoStar be held in contempt of the injunction.

However, on Wednesday, a judge in the U.S. District Court for the Eastern District of Texas said he needs a hearing to evaluate whether the satellite provider's software workaround does avoid infringement before he can decide if EchoStar is in contempt of the injunction. That hearing will be held in February. "


"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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