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TiVo Reports Higher Q2 Loss, Revenue

8/30/2007 11:32:00 AM Eastern

Alviso, Calif. — TiVo reported a net loss of $17.7 million for the fiscal second quarter, ended July 31, almost triple the loss compared to last year’s second-quarter loss of $6.45 million.

This year’s second quarter loss included a combined inventory write-down and inventory purchase commitment charge of $11.2 million, as compared with TiVo's net loss guidance of $5 million to $8 million that didn't contemplate the inventory related write-down. The inventory-related charge primarily relates to long-lead time dual-tuner Series2(TM) standard-definition DVR inventory, the company said.

Net revenues were $62.7 million for the quarter, up from $59.3 million from last year’s second quarter.

TiVo-owned subscription gross additions for the second quarter were 41,000, compared to 74,000 gross additions for the year-ago period. As has been the case in recent quarters, gross subscription additions were impacted by the pace at which retailers moved to a high-definition sales focus, the company said.

Overall, TiVo-owned subscriptions totaled 1.71 million, up 136,000 on an annual basis compared to the year ago-period. As expected, TiVo reported a net decline in DirecTV TiVo subscriptions during the period as DirecTV is no longer deploying new TiVo boxes. Cumulative total subscriptions as of July 31 were 4.2 million. Additionally, the monthly churn rate was 1.2 percent compared to 1..1 percent in the prior quarter. This increase was in part due to subscribers seeking HD DVR alternatives.

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