News for TiVo (NASDAQ:TIVO) continues to get worse as third quarter losses were below analysts' expectations, falling to $20.6 million in the third quarter, as costs rose and revenue declined.
Last year in the same quarter losses came to $6.4 million, or 6 cents a share. This quarter losses were 18 cents a share. Analysts had been looking for a loss of 17 cents a share.
Expenses soared in the quarter, increasing by 32 percent to $44.2 million, up from $33.5 million last year. Revenue in the quarter plummeted from $57.1 million to $50.9 million, a 10.9 percent decline.
Revenue in all three segments TiVo operates in fell in the quarter.
The important subscription business experienced a drop of 17 percent to 2.3 million, down from 2.7 million last year.
Technology revenue was down 24.9 percent to $7 million, dropping from $9.4 million. Hardware revenue declined 5 percent to $9.5 million, down from $10 million last year. Service revenue fell 9 percent to $34.3 million, down from $37.7 million.
With the domestic market in shambles, president and CEO Tom Rogers focused on international deals with Virgin and Canal Digital as their growth vehicles of the future.Rogers said as many as $7 million households in Europe could use TiVo.
Guidance for the fourth quarter was expectations of a loss of between $32 million and $34 million.
The ongoing legal struggle with EchoStar (Nasdaq:SATS) and Dish (Nasdaq:DISH) continues to weigh on the company, although Rogers says he's confident they'll end up winning the lawsuit.
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