TiVo Corporation Reports Third Quarter 2016 Financial Results

TiVo Corporation (NASDAQ:TIVO) today reported financial results for the third quarter ended September 30, 2016.

The Company reported third quarter revenue of $153.1 million, an increase of 33% compared to $114.9 million in the third quarter of 2015. As expected, revenues were higher than in the comparable period of the prior year due to the completion of the TiVo acquisition and the DISH Network license agreement renewal. Third quarter 2016 Net income was $49.9 million, compared to a Net loss of $18.5 million for the third quarter of 2015. Third quarter 2016 Loss from continuing operations before income taxes was $29.0 million, compared to a $14.8 million loss from continuing operations before income taxes in the third quarter of 2015. Third quarter 2016 included an $88.1 million income tax benefit due to a change in the deferred tax asset valuation allowance resulting from the TiVo acquisition.

On a Non-GAAP basis, third quarter 2016 Non-GAAP Pre-tax Income was $45.6 million, compared to $28.9 million in the third quarter of 2015.

Non-GAAP Pre-tax Income is defined below in the section entitled "Non-GAAP Information." Reconciliations between GAAP and Non-GAAP amounts are provided in the tables below.

"Q3 was a transformative quarter," said Tom Carson, president and CEO of TiVo. "Rovi acquired TiVo to form the new TiVo, an entertainment technology leader with a global customer base, robust intellectual property portfolios, best-in-class product development capabilities and financial strength. Our combined product offering saw continued momentum, including Q3 launches of new advanced search and recommendations services and the TiVo BOLT+ device. We also renewed our license agreement with DISH Network, further validating the long-term value and relevance of our intellectual property portfolios for both traditional and next-generation pay-TV service providers."

Mr. Carson continued, "Q4 is off to an excellent start too. I am also pleased to announce we have agreed to terms for an IP license arrangement with Samsung. This deal demonstrates that the merger of Rovi and TiVo offers tremendous synergies and will result in a stronger combined company that is well positioned to create value for our stockholders. This agreement with Samsung not only validates the relevance and longevity of the acquired TiVo intellectual property, but also highlights our preference for commercially reasonable deals over on-going litigation. This deal demonstrates the value that can be created with our IP portfolios and is a good proof point of revenue synergies resulting from the combination of Rovi and TiVo. Additionally, we entered into an early renewal of our Product and Intellectual Property licenses with Panasonic Corporation. Just as important, the Company is already operating as one team and our product portfolio integration efforts are well underway. As a result, we are making significant progress against our goal of at least $100 million in total cost synergies. We have already taken actions that will result in over $40 million in run-rate cost synergies, nearly 50% of our target. As a result, we are confident we are on track to achieve our targeted 65% of the total cost synergies in the first twelve months."

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