TiVo ( TIVO) shot up in the late session Thursday as traders ignored an accounting glitch and focused on a narrower-than-expected loss and raised revenue guidance. San Jose, Calif.-based TiVo lost $3 million, or 6 cents a share, in its second quarter, compared with a loss of $34.5 million, or 82 cents a share, last year. The loss was far narrower than analysts' 18-cent prediction. Revenue was $23.9 million, compared with $4.1 million last year. The accounting error, which was discovered by KPMG in a re-audit of books originally reviewed by Arthur Andersen, involved balance-sheet treatment of convertible notes the company sold in August 2001. The adjustment will improve stockholder equity by about $2 million but won't affect revenue or operating losses. The company will amend its financial filings for last year and the first quarter of this year when the KPMG audit is complete. The company also said it was raising its revenue guidance for the current fiscal year to a range of $57 million to $62 million, up from its previous $50 million to $60 million. It said its full-year operating loss should be smaller, estimating it at $64 million to $72 million from a previous range of $65 million to $80 million. TiVo expects third-quarter revenue of $12.5 million to $14 million and an operating loss of $13 million to $16 million. The company said it added 42,000 subscribers in the quarter, bringing it to 464,000. For the year, the company said it now expects net subscriber additions of 250,000 to 275,000, bringing it to a total of 630,000 to 655,000 subscribers by year's end. The shares were rising 8% to $4.50 in the Instinet late session. The company also said it was expanding distribution of its Series2 digital video recorder and said Sony ( SNE) will sell a recorder that licenses the TiVo technology in the U.S. starting this holiday season.