TiVo Beats Q1 Expectations, Shares Surge

Shares of

jumped over 4 percent in after-hours trading after the company reported upbeat results for the first quarter. The San Jose, California-based company posted quarterly net income of $7.88 million, or $0.08 per share, compared to $8.12 million, or $0.07 per share, in the year-ago quarter. Its net revenue surged to $114.7 million versus $107.1 million, while service and technology revenue climbed 7 percent to $92.4 million. However, analysts were expecting earnings of $0.07 per share on revenue of $111.8 million. The average estimate among 8 Estimize users was for a loss of $0.09 per share and revenue of $118.09 million. Its adjusted EBITDA rose to $29.0 million, versus adjusted EBITDA of $26.9 million in the year-ago quarter. MSO service revenue climbed 41 percent year-over-year in the quarter. Tom Rogers, President and CEO of TiVo, said, "Our operational and financial performance this quarter represented a strong start to Fiscal 2016. Service & Technology Revenue exceeded guidance and Adjusted EBITDA and Net Income came in at the top-end of our guidance. Service Revenue was up 11% year-over-year, driven by a 41% increase in MSO service revenue and almost doubling Digitalsmiths' service revenue. Our innovative products continue to gain global reach across both the retail and operator communities with total subscriptions now at approximately 5.8 million, a 27% improvement over last year and a 132% increase over where we stood at the end of the first quarter of Fiscal 2013." For the second quarter, TiVo now projects service and technology revenue of $94 million to $97 million. It expects net income of $7 million to $10 million and adjusted earnings before interest, taxes, depreciation and amortization of $29 million to $32 million. The company also reported that is has acquired Cubiware. TiVo shares gained 4.72 percent to $10.85 in the after-hours trading session.