TiVo rises on deal announcements, analyst upgrade and narrower Q3 loss
TiVo Inc. (Nasdaq: TIVO) shares are rising after the maker of digital video recorders announced after Wednesday’s close that it signed a deal with media agency Carat to provide second-by-second ratings data. Also before the opening, J.P. Morgan upgraded TiVo to “overweight” from “underweight.” TiVo has a 70% chance of winning its patent case versus EchoStar Communications (Nasdaq: DISH) over digital video recording functionality, the investment bank said.
“TiVo data adds a critical element to understanding what is really going on in DVR homes. Having recently integrated our traditional and digital marketing capabilities, we were impressed with the depth and breadth of TiVo’s audience research services,” Carat CEO Sarah Fay said in a statement. “This model for aggregating television audience viewing patterns complemented our vision for the future of marketing communications.”
On Wednesday, TiVo reported that it is partnering with software company Nero AG to bring TiVo’s video service to personal computers.
“The partnership with TiVo extends the TV experience for the connected digital home, enabling easy access anytime, anywhere to the most extensive TV content,” Nero CEO Richard Lesser said in a statement. “Our core technology enables the creation of new categories in consumer electronics, changing the way that users interact with both hardware and software. Our proven technology adds media functionality to the world’s leading consumer electronics, personal computing and software products.”
On Tuesday, TiVo signed a deal with NBC Universal Inc. to provide ratings data.
After Wednesday’s close, TiVo reported a narrower third-quarter loss of $8.2 million, or $0.08 per share, compared with a loss of $11.1 million, or $0.12 per share, a year earlier. Analysts expected the company to lose $0.13 per share.
Third-quarter service and technology revenue rose to $58.3 million, from $52.5 million during 2006. Wall Street projected $56.67 million.
Going forward, TiVo said it expects a loss of between $9 million and $12 million during the fourth quarter. Also during the fourth quarter, TiVo projects service and technology revenue in the range of $58 million to $60 million. Analysts expect $59.11 million in service and technology revenue and a loss of $0.17 per share.
On Wednesday, Comcast Corp. (Nasdaq: CMCSA) announced it will charge $2.95 extra per month for TiVo’s video recording service.
“We are very excited by the emphasis that Comcast has placed on this product within its organization and their plans to aggressively market it at a $2.95 up-charge as well as through packaged bundles and win-back offers,” TiVo CEO Tom Rogers said in a statement. “Further, we are pleased with Comcast’s plans to promote and market the value of the TiVo experience, which will leverage many of their marketing assets including cross-channel TV.”
TiVo’s recorders allow TV viewers to pause, rewind, play back or replay video broadcasts by recording video onto a computer hard drive.
In morning trading, TIVO shares are up 12.21%, or $0.73, at $6.71. Over the last 52 weeks, shares have ranged from $5.05 to $7.90.
