A boost in service and technology revenues helped to bring TiVo Inc. out of the red in its fiscal second quarter ended July 31.
The digital-video-recorder vendor said service and technology revenues jumped 46% to $40.7 million from $27.8 million in the year-ago period. As a result, TiVo posted net income of $240,000, or $0.00 per share, compared with a net loss of $10.8 million ($0.13) in the prior-year quarter.
TiVo added 254,000 net new subscriptions during the quarter, bringing its total to nearly 3.6 million. The company said its installed base of DirecTV Inc. direct-broadcast satellite subscriptions rose by 214,000 during the quarter to reach approximately 2.3 million.
“While it is encouraging that we hit breakeven this quarter, it is clear that TiVo faces a number of significant challenges,” CEO Tom Rogers said in a prepared statement.
“Driving growth in the number of subscriptions at TiVo is the biggest critical challenge we face,” he added. “Given the increasingly competitive environment, approaching this area more aggressively than we have in the past requires additional investment in subscription acquisition. We will be announcing a number of new promotional initiatives in the fall, one of which combines a hardware and service offer that we believe will be well-received in the upcoming holiday season.”