TiVo Narrows Losses

SAN FRANCISCO -- Digital video recorder maker TiVo(TIVO) cut its losses in the fourth quarter on robust sales of its digital video recorders. Revenues, though, fell short of Street estimates because of a change in accounting.

The company posted a net loss for the fourth quarter of $6.4 million, or 6 cents a share, compared with a loss of $19.5 million, or 20 cents a share, a year ago.

Service and technology revenue was $58.1 million vs. $57 million a year ago. Net revenue for the quarter fell to $74.1 million from $76.85 million the year before.

Analysts were expecting a loss of 11 cents a share on service and technology revenue of $59.3 million.

For the first quarter of fiscal 2009, TiVo said it anticipates service and technology revenue in the range of $53 million to $55 million and a net loss in the range of $1 million to $3 million. Analysts were expecting a loss of 11 cents a share and $59.3 million in service and technology revenue in the first quarter.

Shares of TiVo were down 7 cents, or 0.8%, to $8.07 in recent extended trading.

TiVo said during the fourth quarter it increased the revenue recognition period of lifetime subscriptions to its product sold before Nov. 1 to 54 months from 48 months. The change reduced service and technology revenue by approximately $2.5 million in the fourth quarter

TiVo added 109,000 subscriptions for the fourth quarter, compared with 163,000 in the year-ago period. Overall, TiVo-owned subscriptions increased slightly from the earlier quarter to 1.75 million.

As expected, TiVo reported a net decline in its broadcaster subscriptions during the period as DirecTV(DTV) is no longer deploying new TiVo boxes. Cumulative total subscriptions as of Jan. 31 were 3.95 million.

The monthly churn rate in the fourth quarter rose to 1.5% from 1.2% a year ago and 1.3% in the earlier quarter. The increase was the result of factors including inactive lifetime subscriptions that reached the end of their amortization period and satellite standard definition subscribers migrating to HD offerings from satellite providers.

TiVo also said its service on Comcast(CMCSA) is now operational in New England, Comcast's largest market with almost 2 million subscribers. The company is also in tech trials with cable service provider Cox.

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