TiVo Earnings: Margins Expand, Revenues Surge By Double Digits

TiVo Inc. (NASDAQ:TIVO) reported a drop to a loss in the first quarter driven by higher costs. Tivo is a provider of technology and services for digital video recorders.

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TiVo Inc. Earnings Cheat Sheet

Results: Reported a loss of $20.8 million (17 cents per diluted share) in the quarter. TiVo Inc. had a net income of $139 million or $1.04 per share in the year-earlier quarter.

Revenue: Rose 48.1% to $67.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: TiVo Inc. fell short of the mean analyst estimate of a loss of 15 cents per share. It beat the average revenue estimate of $54.9 million.

Quoting Management: Tom Rogers, President and CEO of TiVo, said, “Our first quarter represented a solid start to the year for TiVo with our results in line with our financial outlook and as we continued to execute on our key objectives. Global adoption of TiVo progressed as we grew our subscription base 27% year-over-year, or by 524,000 subscriptions. Further, we delivered 40% year-over-year service and technology revenue growth, made considerable progress in our efforts to protect our intellectual property and continued to innovate announcing a number of products related to the TV Everywhere experience.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding, as the company’s gross margin expanded five percentage points from the year-earlier quarter to 51.1%. In this period, margins have grown an average of 7.7 percentage points per quarter on a year-over-year basis.

Revenue has increased for four quarters in a row. Revenue increased 19.1% to $66.5 million in the fourth quarter of the last fiscal year. The figure rose 27.4% in the third quarter of the last fiscal year from the year earlier and climbed 18.7% in the second quarter of the last fiscal year from the year-ago quarter.

The company reported a net loss last quarter, after reporting a profit in the quarter prior. In the third quarter of the last fiscal year, the company booked a profit of $24.5 million, or 21 cents per share.

Looking Forward: Expectations for the second quarter have not changed from 13 cents. The average estimate for the fiscal year is a loss of 53 cents per share, down from 52 cents thirty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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