Tivo Swings to 1Q Record Profit After Dish Settlement

CK SatGuy

Formerly ckhalil18
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Feb 7, 2011
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From The Wall Street Journal:
NEW YORK (Dow Jones)--TiVo Inc. (TIVO) posted the most profitable quarter in the company's history in the fiscal first quarter thanks to its recent legal settlement with Dish Network Corp. (DISH). With the dispute with Dish behind the company, a new deal with Comcast Corp. (CMCSK, CMCSA) and a continued rollout by other cable companies, TiVo is establishing a clearer path back to profitability and subscriber growth.
But the boost to the bottom line was only a temporary one. The company continues to struggle with the transition from its more mature, and deteriorating, business to its new, more profitabile products.
TiVo expects to return to a loss in the second quarter of $25 million to $27 million on service and technology revenue of $46 million to $48 million. Analysts polled by Thomson Reuters most recently expected a loss of $17.6 million on $42.8 million in total revenue. Service and technology revenues account for the bulk of the total. Analysts' estimates exclude impacts from a recent settlement.
For the fiscal first quarter, TiVo reported a profit of $139 million, or $1.04 a share, compared with a year-earlier loss of $14.2 million, or 13 cents a share.
Revenue fell 25% to $45.8 million as service and technology revenue fell 10% to $38.8 million.

"We have substantially improved our financial picture," Chief Executive Tom Rogers said in an interview.
Earlier this month, Dish and its former unit EchoStar Corp. (SATS) agreed to pay TiVo $500 million to settle a seven-year patent dispute over digital video recorder technology. Rogers said at the time that resolving the dispute would let the company focus on strategies such as building more relationships with media companies. As part of the deal, Dish would continue to pay TiVo a licensing fee.
"Reaching a settlement of this magnitude underscores the fundemental nature of our intellectual property," Rogers said.
He added the company is exploring its options for use of the cash. One of those options include a possible share buyback.
TiVo had posted wider losses in recent quarters amid lower revenue and higher costs. It has also reported lower subscriber counts. In the latest period, it lost a net 88,000 subscribers, fewer than the 96,000 it lost a year earlier. Total subscriptions ended the quarter at 2 million, down 22% from a year earlier.
Rogers said the losses come from the company's older boxes, which TiVo no longer makes, and that its newer products continue to attract customers. In particular, the company is seeing growth in users from its cable customers.
"You have to separate the legacy stuff from the new stuff," he said.
He declined to predict when the company would return to customer growth, but said the trend was moving in the right direction.
Gross margin widened to 46.1% from 43.6%.
Subscriber acquisition costs declined 8.4%. Monthly churn, or the cancellation rate, was 2.3% for TiVo-owned subscribers, compared with 2% from a year earlier.
While TiVo expects lower legal costs down the line, the company still has a pending patent battle with AT&T Inc (T), Verizon Communications Inc. (VZ) and Microsoft Corp. (MSFT). Rogers said TiVo has done a good job of batting away earlier suits designed to scare the company away.
Shares fell 2 cents to $9.39 in recent after-hours trading. Through Tuesday's close, the stock is up 4% the past year.
-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com
--Matt Jarzemsky contributed to this report

2nd UPDATE: TiVo Swings To 1Q Profit After Dish Settlement - WSJ.com
 
So now you know why DISH was charging a DVR fee PER DVR on the account for so long. Not to mention that you still pay a reduced dvr fee of $3.00 in your additional receiver fees too. We will continue supporting Tivo for the rest of our DISH Dvr lives. Now how about using some of their software to IMPROVE our dvrs. Something substantial for our money so to speak.
 
KEY Word USUALLY. Anyway I can use a search engine too. There were only 2 other possibles I could find. 1st is Tom Tom and due to NDA we don't know for sure what agreement took place. Is TomTom testing Microsoft's patent cross licensing agreements? | ZDNet 2nd is Android and it's still in court(25 possible infringements). Android Patent Infringement: Licensing is the Solution - Microsoft on the Issues - Site Home - TechNet Blogs So it does happen but rarely. When MS goes to court they almost always have ALL their ducks in a row. So it sounds like this only happens w/ MS about once every 12 yrs since it has been around for 36 years. I admit I'm not perfect so there might be some others I missed. Right now I don't have the time, I need to get some sleep.
 
KEY Word USUALLY. Anyway I can use a search engine too. There were only 2 other possibles I could find. 1st is Tom Tom and due to NDA we don't know for sure what agreement took place. Is TomTom testing Microsoft's patent cross licensing agreements? | ZDNet 2nd is Android and it's still in court(25 possible infringements). Android Patent Infringement: Licensing is the Solution - Microsoft on the Issues - Site Home - TechNet Blogs So it does happen but rarely. When MS goes to court they almost always have ALL their ducks in a row. So it sounds like this only happens w/ MS about once every 12 yrs since it has been around for 36 years. I admit I'm not perfect so there might be some others I missed. Right now I don't have the time, I need to get some sleep.

Yeah, you've come a long way from suggesting MS doesn't cross-license ever in just two short hours to some other 'well but under threat of a lawsuit' argument just to try and make your previous posts look less ill-advised. Maybe just stick to the topic rather than try and refute every little point you object with?
 
Yeah, you've come a long way from suggesting MS doesn't cross-license ever in just two short hours to some other 'well but under threat of a lawsuit' argument just to try and make your previous posts look less ill-advised. Maybe just stick to the topic rather than try and refute every little point you object with?
I started out by saying name 1 thing. I then went to simply stating after I have been shown that they have, to pointing out that as far as I can find there have been no more than 3 that I could find. To me that means it is very rare that they have done it in the past 36 yrs. That doesn't seem that far too me. And the subject is the money that Tivo has made in 1 quarter. Well they are set to lose money again in it's next quarter. So if the suits from MS & VZ continue that go thru all the money that they got from E* in a very short time period. I'm pretty sure that was the point to start with.
 

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