By Lisa Johnston
New products on display at the American International Toy Fair, held in N
TiVo, creator of television services for digital video recorders, increased its net revenue for its fiscal third quarter 73 percent, hitting $43.3 million, up from $25 million in the year-ago period.
Gross profit for the third quarter reached $9 million, more than double the $4.1 million gross profit registered in the same three months last year. TiVo reduced its operating loss in the third quarter, to $6.1 million, compared with a loss of $8.8 million year over year, and reduced its net loss to $7.4 million, down from a net loss of $11.5 million in the same quarter a year ago.
TiVo added a record 209,000 subscriptions in the third quarter, ended Oct. 31, compared with 46,000 in the third quarter of the previous year. Its subscription base topped 1 million at the end of the third quarter.
The company added about 59,000 net new TiVo service subscriptions in the three months ending Oct. 31, nearly double the growth in the same period last year, when it recorded 30,000 service subscriptions net additions. Consumer demand for TiVo Series2 DVR and DVD products was driven by a combination of strong retail support, broad availability, a $50 rebate and increased awareness, the company said.
TiVo added about 150,000 net new subscriptions through DirecTV in the third quarter, compared with 16,000 year over year. DirecTV has increased its focus on driving demand for DirecTV with TiVo, including increased marketing directed at existing DirecTV customers, said TiVo.
For the nine months, TiVo net revenue hit $98.4 million, up from $73 million in the same period a year ago. The company reduced its net loss for the nine months, to $19.7 million, down from a loss of $49.7 million in the same period the prior year.
TiVo expects to add 325,000 to 375,000 net new subscriptions in its fourth fiscal quarter, ending Jan. 31, 2004. It anticipates about two-thirds of the fourth quarter growth in subscriptions, and about 15 percent of fourth quarter service revenue, will come from its partnership with DirecTV.
In its next fiscal year, ending in January of 2005, TiVo expects to add 1 million to 1.2 million subscriptions, ending the period with about 2.5 million subs. Service and technology revenue for the next fiscal year is expected to be $90 million to $100 million.
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