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Print 16 comment(s) - last by Basilisk.. on Nov 28 at 12:10 PM

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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Sounds like they're still losing money
By Solandri on 11/27/2008 6:04:26 AM , Rating: 2
quote:
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.

So basically, if you exclude the damages from EchoStar, their non-litigation operations went from an $8.3 million loss in Q3 2007 to a $4.4 million loss in Q3 2008.




By Basilisk on 11/28/2008 12:10:23 PM , Rating: 2
It's not as simple as you make it sound: they may have -spent- millions to -get- that $105M settlement, by which I mean TiVo might have even made some trivial profit w/o the suit. And, they may have shuffled other costs around for tax avoidance, etc., which always makes for a creative interpretation of "profit".

I tried reading their SEC filing, but it was beyond me:
http://investor.tivo.com/secfiling.cfm?filingID=11...
'Did look like they were cost-cutting in ways that might negatively impact growth (cutting R&D) -- if I read the vaguely worded doc' correctly.

Today's profit may be irrelevant if their customer base is eroding as fast as the SEC filing suggested -- 5% loss this year in a continuing decline.


"And boy have we patented it!" -- Steve Jobs, Macworld 2007

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