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TiVo Swings to a Profit

The digital video recorder company raises revenue and guides a tad lower than consensus for the coming quarter.


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swung to a modest profit for the first quarter Wednesday but issued next-quarter guidance that was just shy of consensus expectations.

TiVo on Wednesday reported net income of $835,000, or a penny a share for the quarter, compared with a loss of $10.7 million, or 13 cents a share the year before. Analysts polled by Thomson Financial were expecting a loss of 2 cents a share.

Service and technology revenue for the maker of digital video recorders was $58.1 million, bracketing Street expectations of $58.4 million. That compares to $55 million for the same period last year.

Shares of TiVo recently rose 8 cents, or 1.3%, to $6.44 in extended after-hours trading.

Service revenue was $54.2 million, compared with the year-ago quarter revenue of $47 million. Technology revenue, at $3.9 million from $8.1 million the year before, included $4.6 million of recognized technology revenue in connection with TiVo's


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development work done during fiscal year 2006.

TiVo-owned subscription gross additions for the first quarter were 57,000, compared with 91,000 for the year-ago period. Overall, TiVo-owned subscriptions to its digital video recorders increased slightly to 1.7 million from 1.5 million from the year before.

For the second quarter of fiscal 2008, TiVo forecasts service and technology revenue in the range of $57 million to $59 million and net loss in the range of $5 million to $8 million.

Analysts estimated revenue of $60 million and a loss of 2 cents a share.

TiVo reported a net decline in



TiVo subscriptions during the period as DirecTV stopped deploying new TiVo boxes.

Cumulative total subscriptions as of Jan. 31, 2007 for TiVo was 4.3 million. The monthly churn rate was 1.1% compared with 0.9% in the year-ago period and down from 1.2% in the prior quarter.