TiVo Subs Jump; So Does Net Loss3/10/2005 8:53 AM Eastern
TiVo Inc. saw both subscriber additions and net loss more than double in its fiscal fourth quarter ended Jan. 31 compared with the same period last year.
The digital-video-recorder vendor added some 698,000 net subscriptions during the period, more than double its previous-year-quarter total.
But the company posted a net loss of $33.7 million, or 42 cents per share, compared with $12.4 million (18 cents) in the year-ago period. Service revenue rose 73% to $33 million from $19.1 million in the year-earlier quarter.
TiVo attributed the higher net loss to an increase in rebate expenses during in the quarter as part of its previously announced subscription-acquisition activities. The current-year quarter's results also included $3.2 million in noncash charges related to TiVo's recently completed redemption of its 7% convertible senior notes, the company said.
“This was yet another year of continued growth for TiVo, and we met our objective of doubling our total subscription base in the year," chairman and CEO Mike Ramsay said in a prepared statement.
“Now, with total subs over 3 million strong and growing, we are focused on reaching profitability,” he added. “We have a growing base of recurring revenues that, combined with planned reductions in total acquisition spending in the year, will put us in a position to achieve this goal by [the fourth quarter]."