Stocks/Earnings

TiVo Has ‘Moved Well Beyond a Hardware Company,’ CEO says

Expects final determination from ITC in Comcast case to come down on Nov. 9 11/03/2017 10:21 AM Eastern

TiVo’s business has been rapidly shifting from hardware to software, and that business shift was clear as day in the company’s third-quarter results.

“TiVo has moved well beyond a hardware company and is now an innovative entertainment technology company,” Thomas Carson, TiVo’s president and CEO, said on the company's earnings call Thursday (Nov. 2). “To that point, 95% of our revenues this quarter came from software, services, advertising and licensing.”

Though it’s not a core focus, TiVo is still keeping its hand in the retail hardware business amid the launch of a new lineup of Vox-branded products that add voice navigation and a new user interface.

RELATED: TiVo Refreshes Retail Lineup With Voice-Powered 'Vox' Devices

TiVo said Q3 revenue rose 29%, to $197.9 million, driven by the merger between TiVo and Rovi that closed last fall. That was paired with a net loss of $17 million, versus net income of $49.9 million a year ago that factored in a $83.4 million tax benefit. TiVo expects full-year revenue in the range of $810 million to $830 million, with about $35 million coming from hardware sales.

Carson, who plans to retire from the company (a search for a successor is ongoing), reiterated that TiVo’s business now covers three categories: Platform Solutions (user experience software for pay TV operators in developed and emerging markets); Software and Services (metadata, advanced search and recommendations, voice search and advertising); and Licensing.

Though TiVo has made progress on that last category, having signed recent deals with AT&T and Liberty Global, the overhang continues due to the lack of a deal and a protracted legal battle with Comcast.

RELATED: TiVo Shares Soar on Prelim ITC Ruling Against Comcast

Getting Comcast under license “remains one of our top priorities,” Carson said. 

Regarding the pending action at the International Trade Commission, Carson said TiVo expects a final determination to be issued on Nov. 9.

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