TiVo posts significant Q2 loss, adds new offerings
TiVo Inc. reported a net loss of $17.7 million in Q2, ended July 31, an increase of 172 percent year-on-year.
Service and technology revenues increased 7 percent to $56.5 million in the quarter. Service revenues were $53.4 million, an increase of 8 percent compared with $49.4 million a year ago; technology revenues were $3.1 million, down 9 percent from $3.4 million in the year-ago quarter.
TiVo-owned subscription gross additions for the second quarter were 41,000 - compared with 74,000 a year ago. The company said its additions continue to be “impacted by the pace at which retailers moved to a high definition sales focus.”
Overall, TiVo-owned subscriptions totaled 1.71 million, up 136,000 on an annual basis compared to the year-ago period. Cumulative total subscriptions totaled 4.2 million.
During the quarter, DirecTV and TiVo announced a deal to develop a software upgrade for DirecTV DVR users with TiVo service. TiVo also launched a lower-priced HD DVR, which hit retail stores last week. And during Q2, the “Buy on Box” capability for the Amazon Unbox service was released.
“We made significant progress over the past six months on several areas of our business that we believe will positively impact the growth prospects of TiVo,” said TiVo CEO Tom Rogers.
TiVo’s net loss included a combined inventory write-down and inventory purchase commitment charge of $11.2 million, the company said, relating primarily to long-lead time dual-tuner Series2 SD DVR inventory. The $11.2 million loss was not anticipated when the company stated its fiscal 2008 adjusted EBITDA goal, but TiVo said “the goal remains in place.”
During the quarter, TiVo added Clent Richardson as CMO and Karen Bressner as the head of advertising sales.