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TiVo scrapes into profit, for now |
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| Chris Forrester, on 28-08-2008 |
 PVR supplier TiVo moved into positive territory for its latest quarter (to July 31) of $2.9m in net income, compared with a loss of $17.7m for this same period last year. But the company is still very much in the woods.
This is emphasised by the company’s own guidance for the upcoming third
quarter which is for a return to net losses, of about $7m-$9m, down to
hardware and marketing expenses. Subs are also flat at 1.7m. TiVo’s own
gross new subscriptions were up 36,000 (41,000 last year), but third
party subs were off, partly because they are no longer deploying
DirecTV boxes with TiVo. Total (TiVo and 3rd party) subs stood at 3.6m.
However, CEO Tom Rogers reminded analysts that its deal with Comcast is
about to start kicking in, with a Comcast-wide marketing campaign
starting this September. Rogers said: “Additionally, the TiVo service
on Cox, which is currently in trials, is on track for a launch in Cox's
New England market later this year.” TiVo also has a distribution deal
in place with the Seven Network in Australia.
TiVo is also locked into a long-running litigation with Echostar, where
the Courts have awarded TiVo judgement. “In terms of our litigation
with EchoStar and defending our intellectual property, we are now in
the enforcement phase of the process. On September 4, 2008, there is a
contempt hearing scheduled to determine whether EchoStar is in contempt
of the injunction that has already been upheld by the U.S. Court of
Appeals for the Federal Circuit, enjoining them from selling and
operating infringing units as well as to determine further damages from
EchoStar’s continued infringement after September 2006. We remain
confident in the outcome and look forward to final resolution in the
near-future and to realizing the value of our intellectual property,”
said the company.
Victory or not, some commentators suggest that EchoStar’s lawyers will
keep this litigation alive for years to come, thus depriving TiVo with
its revenues and occupying management time.
© Rapid TV News 2008
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