TiVo Posts Profit On Litigation Gains - Update

(RTTNews) - Video service provider TiVo Inc.(TIVO), Tuesday posted a healthy profit for the second-quarter when compared to a loss last year, due mainly to a patent litigation settlement.

Tivo reported second-quarter net income of $269 million or $1.96 per share, compared with a net loss of $27.7 million or $0.23 per share last year.

On average, 11 analysts polled by Thomson Reuters expected a loss of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.

Results for the recent quarter reflect a $490 million patent-litigation settlement with Google Inc.'s Motorola Mobility and Cisco Systems Inc. TiVo had accused the companies of infringing patents for digital video recorders.

Total revenue for the quarter surged 53 percent to $100 million from $65 million a year ago.

Service and technology revenue climbed 42 percent to $77 million from $54 million last year. Analysts expected revenue of $71.48 million for the quarter.

Total cumulative subscriptions at the quarter-end was 3.6 million, up 33 percent from last year.

For the third quarter, TiVo expects net income of $6 million to $8 million and service and technology revenue of $80 million to $82 million. Analysts currently expect revenue of $73.29 million for the quarter.

TiVo said the latest litigation settlements will produce significantly increased licensing revenue in the future.

TiVo shares closed Tuesday at $10.97, down $0.18 or 1.61%, on a volume of about 5 million shares on the Nasdaq. In after hours, the stock gained $0.18 or 1.64%.