(By Balaseshan) TiVo Inc. (NASDAQ:TIVO), whose brand is synonymous with digital video recorders, reported a wider quarterly loss due to higher costs. Loss, however, was narrower than Street's forecast, sending its shares up 4.27% in aftermarket.
Loss for the second quarter widened to $27.74 million or $0.23 per share from $19.55 million or $0.17 per share last year..
Service and technology revenue increased 10% to $54.1 million. Net revenue rose to $65.26 million from $61.18 million.
Analysts, on average, polled by Thomson Reuters had expected a loss of $0.24 per share on revenue of $54.32 million for the second quarter.
Service revenue declined 5% to $32.30 million, while technology revenue jumped 40% to $21.83 million. Hardware revenue marginally declined to $11.13 million from $11.58 million.
Total subscriptions grew by 230,000 or 41% year-over-year. TiVo-owned churn rate per month narrowed to negative 1.6% from negative 1.9%.
TiVo-owned average revenue per unit (ARPU) per month increased to $8.42 from $8.31, while MSOs' ARPU per month fell to $1.15 from $1.94.
Looking ahead into the third quarter, the company expects service and technology revenue of $57 million to $59 million, while Street predicts $56.48 million. TiVo anticipates net loss of $27 million to $29 million and adjusted EBITDA loss of $14 million to $16 million.
Litigation costs due to the upcoming Verizon trial scheduled for October 2012 are expected to remain high and to significantly impact net loss and Adjusted EBITDA loss in the third quarter of fiscal 2013.
TIVO closed Wednesday's regular session down 1.89% at $9.36. The stock has been trading between $7.75 and $12.37 for the past 52 weeks.