TiVo-Rovi Integration ‘On Track,' CEO Says

Says company exceeded ‘synergy targets’ in Q4, still trying to work a deal with Comcast  
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A plan underway to achieve at least $100 million in annual cost synergies following last year’s Rovi-TiVo merger are “on track,” and the company “exceeded our synergy targets” in the fourth quarter, Tom Carson, TiVo’s president and CEO, said on Wednesday’s earnings call.

Rovi and TiVo closed their deal last September, and the company has carried the TiVo brand forward.

Following recent deals with Verizon Communications and Dish Network, TiVo now has licensing deals in place with nine of the ten top U.S. MVPDs.

The exception is Comcast, which is not included in TiVo’s current revenue expectations for 2017.

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“We continue to work on getting Comcast under license even if it requires seeing the pending litigation through the conclusion,” Carson said, noting that the hearing in the ITC case was completed in December, and that he expects an initial determination in late April of this year.

“While we would prefer a commercial agreement and remain open to discussions on that front, we are prepared to continue enforcing our rights through litigation,” Carson added.

TiVo posted Q4 revenues of $252.3 million, up 69% from a year ago and boosted by the Rovi-TiVo merger. That deal contributed $125.8 million in revenues in the period, which included a new deal and catch-up payments from Samsung. Q4 net income was $9.8 million, narrowed from $26.3 million.

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TiVo is also starting to break out product revenues based on three business models: platform solutions (IPG products, including Cubiware middleware and TiVo DVR and non-DVR products, including hardware revenues), software and services (licensing of metadata , advanced search and recommendations, advertising and data analytics), and "other" (analog content protection and other analog offerings).

Among that group, IP licensing revenues were $104 million, up from $32 million; while product revenues reached $112 million, up $52 million, boosted by TiVo contributions that offset a drop in ad revenues due to the absence of a Comcast deal.

TiVo expects fiscal year 2017 revenues of $800 million to $835 million, including hardware, and a GAAP loss before taxes of $55 million to $70 million.

Among other stats, TiVo said about 23 million subscriber homes worldwide now use TiVo’s “advanced television experiences.