TiVo, a maker of digital video recorders, posted second-quarter earnings that beat analysts' estimates, helped by gains in subscribers. It also announced a new plan to buy back $350 million of stock.
Earnings were 8 cents a share for the period ending July 31, the San Jose-based company said in a statement Tuesday. That compares with the 7 cent-a-share average estimate of analysts, according to data compiled by Bloomberg. Sales rose 12 percent $111.9 million, topping the average estimate of $108.4 million.
In an effort to gain more subscribers, TiVo said yesterday it's offering a new DVR for people who don't subscribe to cable or satellite TV. The device, which lets users record over-the- air content from broadcast networks as well as stream Internet video from Netflix and YouTube, is a quarter of the upfront cost of its $200 Roamio device which is coupled with a cable-TV subscription.
The company added 263,000 subscribers in the quarter, compared with 212,000 a year earlier.
Net income was $9.31 million, compared with $268.9 million, or $1.96 a share, a year earlier. Last year's results were boosted by legal settlements.
In the buyback program, TiVo intends to repurchase the first $100 million of stock during current fiscal year with the remainder in the next two fiscal years
The TiVo Roamio OTA DVR, equipped with an antenna, may grab users departing from halted video-streaming startup Aereo Inc., after the U.S. Supreme Court said in June that the company violated broadcasters' copyrights.
Tivo, a pioneer in the DVR market, has traditionally sold its own set-top boxes and licensed its technology to pay-TV operators such as DirecTV and Comcast Corp. that rent units to subscribers. As pay-TV services offer more streaming and on- demand video options, Tivo has sought to retain customers with set-top boxes that can better access streaming services and deliver recorded programs to mobile devices.
Shares in Tivo rose 2.2 percent to $13.90 at the close in New York. The stock has gained 5.9 percent this year.