Alviso, Calif. — TiVo reported a profit and higher sales for its first quarter ended April 30.
TiVo reported net income of $835,000 compared to a net loss of $10.7 million for the first quarter of last year. Adjusted EBITDA was $6.7 million compared to an adjusted EBITDA loss of $6.9 million in the year-ago period.
Service revenues were $54.2 million, compared to the year ago quarter when service revenues were $47 million. Service and technology revenues were $58.1 million, compared with $55 million for the same period last year. Technology revenues were $3.9 million. In the year-ago period technology revenues were $8.1 million, which included $4.6 million of recognized technology revenues in connection with TiVo’s Comcast development work done during fiscal year 2006.
Tom Rogers, CEO of TiVo said, “This quarter was all about steady progress across many areas of our business. What is very exciting to note is that this was a period where we continued to develop and bring to market additional key features that further position and differentiate TiVo from generic DVR alternatives. We improved our financial profile by posting both positive adjusted EBITDA and net income. We solidified our standing as the only DVR platform with a comprehensive advertising solution.”
Rogers added, “We made significant progress in our mass distribution strategy with our Comcast related efforts and we are very excited that Comcast indicated the Boston area as the first market for the product. Our advertising sales business had a solid quarter with revenues up nicely on a year-over-year basis.”
TiVo-owned subscription gross additions for the first quarter were 57,000, compared to 91,000 gross additions for the year-ago period. Overall, TiVo-owned subscriptions increased slightly to 1.7 million from 1.5 million in 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 January 31, 2007 were 4.3 million. Additionally, the monthly churn rate was 1.1 percent compared to 0.9 percent in the year-ago period and down from 1.2 percent in the prior quarter.
On the litigation front, our case against EchoStar “is progressing and we are moving closer to resolution at the Federal Circuit of Appeals. We remain confident in our position and look for the Federal Circuit to rule soon,” TiVo said.
