Updated from Nov. 20
shares dropped 10% Friday morning after the TV recorder technology outfit posted a disappointing sales outlook.
The setback came even after TiVo posted solid fiscal third-quarter subscriber and sales growth in a Thursday afternoon earnings release.
The San Jose, Calif., tech outfit reported a latest-quarter loss of $7.4 million, or 11 cents per share, on $22.7 million in services and technology sales. That compares to a year-ago loss of $11.5 million, or 23 cents per share, on sales of $12.7 million. In the sequentially prior second quarter, TiVo lost 7 cents a share on $23.8 million in revenue.
The performance beat analysts' expectations of a loss of 16 cents per share on sales of $17.7 million. On Friday, the stock dropped 91 cents to $8.47.
For the fourth quarter, TiVo expects to post service and technology sales of $20 million. Analysts had been looking for $21 million during the holiday gift-buying season, according to a Multex tally.
TiVo added 209,000 new subscribers in the quarter, doubling the previous quarter's growth and surpassing the million-user mark well ahead of expectations. The company raised its total subscriber target to 1.37 million from 1.27 million previously.
Driven by greater awareness of the product, wider distribution thanks to a sales pact with
a unit of
, and $50 rebates, "The pace of sub growth moving into the holiday season is at an all-time high," CEO Mike Ramsay said.
The TV tech shop boasts an ardent cult following for its video recording kits, and has been struggling to break into a mass market. But that progress faces challenges as cable gear makers like
offer new-generation set-top boxes with TiVo-like recording capability.