SAN JOSE, CA--(Marketwired - May 26, 2015) - TiVo Inc. (NASDAQ: TIVO)Diluted EPS of $0.08, up 17% relative to the year-ago quarter
Total TiVo subscriptions now approximately 5.8 million, up 27% year-over-year
Record Service and technology revenues of $92.4 million in the first quarter, an increase of 7% year-over-year, exceeding guidance; driven by strong year-over-year growth in MSO and Digitalsmiths service revenue
MSO service revenue grew 41% year-over-year; Significant progress with existing distribution relationships; extended partnership with Virgin Media; Vodafone Spain bundling ONO television service powered by the cloud-based TiVo platform to its mobile customers
Adjusted EBITDA of $29.0 million, in line with the high-end of guidance
Net Income of $7.9 million, in line with the high-end of guidance; included $1.8 million of interest expense, net of tax, that related to the convertible notes issued in September 2014, without which, current quarter net income would have increased by $1.6 million relative to year-ago quarter
Positive TiVo-Owned net additions resulted in the best first quarter net addition performance in eight years; while gross additions of 39,000 were up 22% year-over-year
Announced the acquisition of Cubiware, to expand to emerging Pay TV markets as well as expanding services for international operators in other markets
TiVo software to be integrated into ARRIS set-top boxes; TiVo now working with all major global set-top box providers
TiVo Inc. (NASDAQ: TIVO), a leader in the advanced television entertainment market, today reported financial results for the first quarter ended April 30, 2015.
Tom Rogers, President and CEO of TiVo, said, Our operational and financial performance this quarter represented a strong start to Fiscal 2016. Service & Technology Revenue exceeded guidance and Adjusted EBITDA and Net Income came in at the top-end of our guidance. Service Revenue was up 11% year-over-year, driven by a 41% increase in MSO service revenue and almost doubling Digitalsmiths service revenue. Our innovative products continue to gain global reach across both the retail and operator communities with total subscriptions now at approximately 5.8 million, a 27% improvement over last year and a 132% increase over where we stood at the end of the first quarter of Fiscal 2013. During the quarter, we continued to add MSO subscriptions at a rapid pace and delivered the best first quarter of TiVo-Owned net subscription additions in eight years, driving positive net subscription additions.
As we look to the remainder of the year and beyond, the successful completion of critical initiatives including the extension of our agreement with Virgin Media, the broadening of our international opportunity through the acquisition of Cubiware, and numerous others, has positioned us at the forefront of the evolving media landscape. As a result, we believe we are well placed to drive strong long-term operating and financial results, to invest in innovation to build on our solid competitive position, and to drive shareholder value through our buyback authorization.
For the first quarter, service and technology revenues were $92.4 million. This compared to guidance of $90 million to $92 million and $86 million for the same quarter last year. TiVo reported Adjusted EBITDA of $29.0 million, compared to Adjusted EBITDA guidance of $26 million to $29 million, and compared to Adjusted EBITDA of $26.9 million in the same quarter last year. Net income was $7.9 million, compared to guidance of $5 million to $8 million and net income of $8.1 million in the same quarter last year. This quarter included $1.8 million of tax affected interest expense for the convertible notes issued in September 2014, which was not included in the year-ago quarter. Excluding the additional interest expense, net income would have been up almost 20% year over year. Diluted EPS was $0.08, compared to $0.07 in the first quarter last year. Additionally, the Company has now repurchased $266 million since it instituted its $550 million share repurchase program, including $20 million during the first quarter. $284 million or approximately 27 million shares (based on the current stock price) remains on the share repurchase authorization.
Rogers continued, Our operator efforts are producing solid results. We have 4.8 million operator subscriptions, having added more than 1.2 million since the first quarter of last year, and 285,000 this past quarter. The 34% year-over-year increase in MSO subscriptions translated into 41% year-over-year MSO service revenue growth, which is an acceleration over last quarters year-over-year growth rate of 30%.
Further, in April, we extended our deal with Virgin Media, and as part of the new agreement, Virgin Media has committed to the development of next-generation solutions from TiVo. In Spain, the ONO television offering powered by TiVo is now being marketed by Vodafone as a bundled package to mobile customers, highlighting the valuable role that we play in helping Vodafone with its quad-play strategy, and ultimately, in growing its business.
Additionally, we are seeing increasing momentum and contribution from our North America operator partners, which represented 48% of our total new MSO subscription additions in the first quarter, the highest it has ever been. Cogeco launched the TiVo product in its Quebec market and early results are promising. This launch was important as it was the first time the TiVo software has included bilingual capabilities, which is something we believe can help as we look to expand distribution in Canada as well as other regions where this is a necessary capability.
Turning back to our international efforts for a moment: we made an important announcement today regarding the acquisition of Cubiware -- a provider of cost-effective middleware so
