TiVo Reports Results for the Second Quarter Ended July , 05

SAN JOSE, CA--(Marketwired - Sep 8, 2015) - TiVo Inc. (NASDAQ: TIVO)

Record Service and Software & Technology revenue of $99.1 million, an increase of 14% year-over-year, exceeding guidance

MSO service revenue growth accelerated, up approximately 48% year-over-year; driven by a 32% year-over-year increase in MSO subscriptions

Adjusted EBITDA of $32.4 million, exceeding guidance

GAAP Net Income was $8.3 million; Non-GAAP Net Income grew 28% year-over-year to $11.9 million

Total TiVo subscriptions now over six million

TiVo-Owned gross additions of 37,000 were up 37% year-over-year; 8th straight quarter of double-digit growth

Signed new distribution deals with the National Cable Television Cooperative (NCTC) and recently announced Wide Open West (WOW!)

TiVos recently acquired emerging market offering, Cubiware, performing ahead of expectations and recently announced deals with Global Satellite (Philippines) and SuperCanal (Argentina)

Announced software for a non-CableCARD hybrid set-top box for cable operators that will enable quicker and broader deployments of the TiVo service

TiVo Research, TiVos audience research and data analytics company, announced several new deals, including with Viacom, Quantcast, Ninth Decimal, and Simulmedia

TiVo files patent infringement action against Samsung

TiVo Inc. (NASDAQ: TIVO), a leader in the advanced television entertainment market, today reported financial results for the second quarter ended July 31, 2015.

Tom Rogers, President and CEO of TiVo, said, We executed well in the second quarter, delivering revenue and Adjusted EBITDA ahead of guidance, including a 48% year-over-year growth in MSO service revenue. Additionally, we continued to see progress in our retail business with a 37% year-over-year increase in TiVo-Owned gross additions. We also established new distribution relationships and expanded existing ones, including beginning the rollout within Vodafone Spains (ONO) IPTV footprint and new agreements with WOW!, the ninth largest cable TV provider in the U.S., and the NCTC. We believe our success in the first half of the year positions us nicely to drive strong operating and financial results for the remainder of the year.

For the second quarter, service and software & technology revenues were $99.1 million. This compared to guidance in the range of $94 million to $97 million, and $86.6 million for the same quarter last year. TiVo reported Adjusted EBITDA of $32.4 million, compared to Adjusted EBITDA guidance of $29 million to $32 million, and compared to Adjusted EBITDA of $29.9 million in the same quarter last year. Net Income was $8.3 million, compared to guidance of $7 million to $10 million, and $9.3 million in the same quarter last year, which did not include $3.5 million consisting of $1.7 million of non-cash amortization and transfer tax expenses from the Cubiware acquisition and tax adjusted interest of $1.8 million from our 2% convertible notes issued in September 2014. Excluding these items, Non-GAAP Net Income grew 28% to $11.9 million compared to the year ago quarter.

Rogers continued, Our relationships with operator partners continue to strengthen and contribute to our strong financial results. We posted accelerating year-over-year MSO service revenue growth and MSO subscriptions now stand at more than five million, an increase of 32% over last year.

In terms of existing relationships, our international distribution partners contributed nicely to the 284,000 MSO subscription additions we posted in the quarter. More specifically, we benefited from Vodafone Spains efforts to significantly market its television offering including TiVo as a bundled package to mobile customers and believe our recently completed project with Vodafone to provide full IPTV capability, enabling Vodafone to expand its TiVo solution to its FTTH (fiber to the home) footprint in addition to the ONO cable network will continue our momentum in Spain. In the UK, there are now close to three million TiVo subscriptions and we continue to see opportunities in the UK as Liberty Global/Virgin Media executes on Project Lightning, its effort to expand its network to an additional four million homes and businesses.

Also on the international front, our recent acquisition of Cubiware, a software and user interface provider to mid-size and smaller operators, including those in developing and emerging markets, is exceeding our expectations and recently announced new deals with Global Satellite in the Philippines and SuperCanal in Argentina, growing TiVos relationships to over 40 operators in 25 countries. We continue to be excited about the opportunity that Cubiware presents for TiVo, which significantly expands our international presence and enables us to address a larger portion of the global Pay TV market, which is expected to grow to over one billion subscribers by 2020 per ABI Research.

In North America, we had another strong quarter with MSO cable subscription additions growing 56% year-over-year and representing approximately half of our 284,000 MSO cable subscription additions in the quarter. Importantly, subscriptions in the U.S. typically have higher associated ARPUs compared to those associated with our international distribution partners.

We also announced a new next generation non-DVR software initiative this quarter to specifically meet operators demands for low-cost replacement of outdated set-top boxes that provides access to traditional linear channels, video-on-demand and streaming content all in one experience and with the flexibility to operate as a standalone HD set-top, a thin client, an IPTV box or in conjunction with a network DVR. This new software will enable quicker and broader deployments of the TiVo service for both existing and potential new operator partners.

This kind of innovation is why WOW!, a top 10 cable opera

LINK:	http://pr.tivo.com/press-releases/tivo-reports-results-for-the-second-...
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