Total revenue declines 17%, but investors laud overall cost-cutting moves

Technology licensing company TiVo said Wednesday that its cost to litigate patent disputes increased by $5.6 million in the second quarter, as it continues to lock horns with Comcast.

TiVo rendered its Q2 report a day after it suffered a defeat in its fight to get Comcast to pay licensing fees used for technologies in the cable company’s X1 video system. Comcast remains an important holdout in TiVo’s quest to put the pay TV ecosystem under patent license, and TiVo has been spending accordingly in court to put the cable operator under heel.

Related: Comcast Wins Battle in Patent War with TiVo

On Wednesday, TiVo reported a 13% slide in platform solutions revenue to $72.2 million, as the company continues to steer away from selling hardware. TiVo did, however, tout new licensing business in the cable industry for its next-generation platform, with RCN, TDS, Atlantic Broadband and Service Electric all signing on in the second quarter.

TiVo also said part of the revenue slide stemmed from a notable consumer electronics company being “out of license”—a condition TiVo said it expects to resolve soon.

In total, TiVo saw overall revenue decline by 17% to $172.8 million in the second quarter.

TiVo did report a significant drop in operating expenses, which included a $6.8 million reduction tied directly to exiting the hardware business.

“We delivered a solid second quarter and we continue to stay ahead of our internal plan, including optimizing our costs,” said interim president and CEO Raghu Rau, who said he’d stay on indefinitely. For TiVo, it was the first earnings report since the abrupt departure of former CEO Enrique Rodriguez, who left in June to become CTO of Liberty Global. 

Related: TiVo Shares Dip After CEO Departure

“I am committed to remain as CEO as long as it takes to drive the strategic process to a logical, successful conclusion that maximizes stockholder value,” Rau added.

TiVo shares were up 5.35% in after-hours trading. 

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