TiVo Revenue Falls 6.5% Ahead of Acquisition

Television set-top box maker TiVo Inc. said its revenue fell 6.5% in the latest quarter as a decline in the company's hardware segment masked growth in its service and software business and its technology segment.

Shares fell 2.6% to $9.69 in recent after-hours trading.

For the period ended April 30, TiVo reported revenue of $107.3 million, compared with $114.7 million a year earlier.

The San Jose, Calif., company said service-and-technology revenue grew 16% to $99.7 million, edging past expectations of analysts polled by Thomson Reuters for service-and-technology revenue of $99.6 million.

Hardware revenue slumped by two-thirds to $7.5 million.

Naveen Chopra, interim chief executive and finance chief, said in prepared remarks Tuesday that in the latest quarter, TiVo delivered significant growth in its service provider business while implementing previously announced restructuring efforts and new product development initiatives.

During the latest quarter, TiVo added a net 315,000 subscriptions. At quarter's end, TiVo's total subscriber base increased to 7.12 million, compared with 5.76 million a year earlier.

The digital-video recorder pioneer is in the process of being acquired by entertainment-tech firm Rovi Corp. The roughly $1.1 billion deal will combine TiVo's traditional TV content with Rovi's guides, advertising, analytics and cloud services. Rovi makes a significant amount of revenue from its licensing agreements with video distributors such as Comcast Corp. The combined company will keep the TiVo name.

TiVo said in its earning release that the Rovi deal is on track to close in the third quarter.

Over all, TiVo reported a profit of $4.2 million, or 4 cents a share, down from $7.9 million, or 8 cents a share, a year earlier. Excluding restructuring-related costs, expenses related to the Rovi deal and other items, adjusted profit rose to $12.1 million from $9.1 million. Analysts polled expected per-share profit of 8 cents.

TiVo also affirmed is guidance for its fiscal year ending in January.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

May 31, 2016 17:05 ET (21:05 GMT)

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