TiVo’s net income loss was slightly higher in Q2, widening to $2.93 million ($0.03 per share) from $2.91 last year. Revenues also dipped, falling to $57.3 million from $65.2 million in Q208. Not great news by any stretch, but the DVR company did beat analysts estimates who expected a loss of $0.05 per share (via MarketWatch). In a separate announcement, TiVo (NSDQ: TIVO) said it was suing AT&T (NYSE: T) and Verizon (NYSE: VZ) over the violation of patents it owns for its DVR service. The company is seeking a permanent injunction against the two telcos from operating their respective DVR offerings. TiVo specifically cited the case it won against EchoStar (NSDQ: SATS) in Texas over similar charges of patent infringement concerning EchoStar’s DVR. EchoStar said it would appeal that ruling, which ordered the Dish Network operator to pay TiVo over $203 million. The new suit was filed in the same U.S. District Court for the Eastern District of Texas that decided the EchoStar matter.
|2Q 2009||2Q 2008||Analysts Estimates For 2009|
– Outlook for Q3: Getting back to the company’s earnings report, TiVo is projecting a loss ranging from about $8 million to $10 million. Service and technology revenues were $48.8 million in Q2, compared with $53.5 million last year and $48.5 million for Q109. For Q3, TiVo anticipates service and technology revenues to be between $46 million to $48 million.
– Subscriptions: TiVo added 31,000 new subscriptions in Q2, a little less than the 36,000 gross additions for the same period last year. In total, TiVo finished Q2 with 1.6 million. Monthly churn rate was about 1.5 percent. Despite highly-touted alliances with retailer Best Buy and DirectTV, TiVo has a lot to worry about from the DVR rollouts of new rivals like AT&T and Verizon. So far, TiVo has shown that it can prevail in court. But it has been fighting EchoStar since 2004. By all indications the fight with AT&T and Verizon is happening now and TiVo doesn’t have five years or so to beat its challengers back through the legal system.