IE 11 is not supported. For an optimal experience visit our site on another browser.

TiVo loss narrows, matches expectations

As it struggled to gain new subscribers, TiVo Inc., the maker of the popular set-top digital video recorder, on Wednesday reported narrower fourth-quarter losses in line with Wall Street expectations.
/ Source: The Associated Press

As it struggled to gain new subscribers, TiVo Inc., the maker of the popular set-top digital video recorder, on Wednesday reported narrower fourth-quarter losses in line with Wall Street expectations.

For the three months ended Jan. 31, the DVR pioneer said it lost $19.5 million, or 23 cents per share, compared to the year-ago loss of $33.7 million, or 42 cents a share.

Revenue rose slightly to $60.1 million from $59.4 million in the quarter last year.

Analysts were expecting the Alviso, Calif.-based company to post revenue of $46.4 million, according to Thomson Financial.

TiVo said it acquired 356,000 new subscribers in the fourth quarter, compared to 698,000 in the year-ago period. About 173,000 of those new accounts were from DirecTV satellite TV subscribers, instead of consumers who purchased TiVo’s standalone DVRs.

But that long-running relationship with DirecTV is set to end next year as the satellite TV company switches to a different DVR platform. And the competition continues to heat up from other cable and satellite TV operators now offering their own DVR services — usually at lower prices.

DVRs record shows onto a hard disk while allowing users to pause TV broadcasts and fast-forward past commercials.

TiVo, which now has more than 4.4 million subscribers, has been adding new features and is expanding its service beyond set-top-boxes to cell phones and portable digital players to help differentiate itself.

It also has a deal with Comcast Corp., though details of how the cable TV titan will incorporate TiVo’s technology into its services remains to be seen. A TiVo-based Comcast set-top-box is expected to released in the second half of 2006.

For the fiscal year, TiVo said it had a net loss of $34.4 million, or 41 cents a share, compared to a net loss of $79.8 million, or 99 cents a share in fiscal 2005.

The company has pegged losses throughout most of its eight-year history, though it did break even on a per-share basis in its last fiscal second quarter.