Updated from Aug. 21
shares surged Friday after the TV recorder company reported stronger-than-expected second-quarter numbers.
The Alviso, Calif., tech shop boasts an ardent cult following for its video recording kits. The intensity of that affection became apparent Thursday afternoon, when the company posted a narrower second-quarter loss and promised a strong second-half performance. The company's comments drove a 13% jump in early Friday trading, adding to an 8% advance during Thursday's regular trading.
For the quarter ended July 31, the company posted a loss of $4.4 million, or 7 cents per share. That's an improvement from the prior quarter's 12-cent loss. Sales jumped 6% sequentially to $17.4 million, as the company added 90,000 new subscribers in the period.
Analysts polled by Multex had expected the second-quarter loss to be 13 cents a share on sales of $16.4 million. Some analysts had expected net subscriber gains to be around 80,000.
"Compared to last year, we just doubled sub growth in the first half, we'll triple in the second half, and we expect to roll past 1 million subs during the holiday season," CEO Mike Ramsay said.
For the fiscal third quarter, TiVo predicts revenue of about $17 million, with the addition of 600,000 new subscribers by the end of January. The company trimmed the top end of its operating-loss guidance for fiscal 2004 to $35 million from $38 million, with the bottom half of the range staying put at $27 million.
On Friday, Tivo rallied $1.25 to $10.95.