TiVo losses widens in Q2

31 Aug 2006

(Associated Press via NewsEdge) TiVo reported a quarterly loss that was 7 times greater than the red ink a year ago, mainly because of hefty legal costs associated with a high-stakes intellectual property patent dispute.

In the three months ended April 30, the digital video recorder maker said it lost $6.45 million, compared with a loss of $892,000, in the year-ago period.

Revenue rose 50% to $59.2 million, from $39.3 million a year ago.

Despite the widening loss for its fiscal second quarter, the company easily beat Wall Street's expectations.

Analysts, on average, were expecting a loss of $10.54 million, on sales of $51.32 million, according to a survey by Thomson Financial.

TiVo said it had 4.4 million subscribers on July 31, up slightly from last quarter and up 24% from the same time in 2005.

In its current quarter, TiVo expects to lose $12 million to $17 million on revenue of $54 million to $56 million. Analysts are projecting on average a loss of $14.8 million on revenue of $54.6 million.

TiVo CEO Tom Rogers wouldn't predict when the company would become profitable, but he emphasized that it would continue to spend significant amounts of money on getting new customers through advertising and other marketing efforts.

The company meanwhile reported that 'general and administrative' expenses, a category that includes payments to some accountants, lawyers, consultants and technologists, swelled to $11.09 million last quarter, up from $8.41 million in the same period of 2005.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

Related content

No Comments Yet! Be the first to share what you think!