TiVo Inc. (NASDAQ:TIVO) reported healthy quarterly sales, mostly attributed by the higher subscriptions. The firm also conquered analysts’ estimates in revenue. The firm’s total subscriptions eclipsed roughly 26 percent to as much as 6 million in the latest quarter ended July 31.
Overall, the firm’s revenue boosted to $119.5 million from $111.9 million. Revenue generated from company’s services and software and technology businesses amounted $99.1 million, surged about 14 percent, while analysts’ had projected sales growth of $96 million.
TiVo has many clients which include cable companies like DirecTV and firm is muscling up its efforts to partner with more TV operators to expand its business. TiVo’s set-top boxes are specifically in-focus of the cable users’ as in addition to allowing digital video recording of the TV programs the device also enables the users’ to use online video services such as Netflix Inc, Hulu and Google Inc’s YouTube.
TiVo retails its products through cable TV partners such as Virgin Media in the UK, ONO in Spain and Com Hem AB in Sweden.
Looking forward the firm is optimistic about the revenue progress in the current quarter. Strong cable and retail business growth would drive the firm’s revenue in the current quarter, according to Chief Executive Officer of TiVo, Tom Rogers. The firm forecasts revenue of $100-$103 million for its service and software and technology businesses in the third quarter, up from the $88.1 million the firm gained in the same period of the earlier year. On average analysts’ polled by Thomson Reuter’s expects revenue of $98.2 million.
TiVo’s net income dropped to $8.3 million year over year to $9.3 million in the second quarter of 2015. TiVo posted earnings of 9 cents a share for the fiscal second quarter, similar to what analysts’ expected.
On Tuesday, the San Jose, California-based company has sued Samsung over patent violation. In a Lawsuit filed yesterday the company claims that Samsung has breached several of its DVR patents.
