TiVo Stock Drops Slightly, to Year Low, as It Will Outsource DVRs, Focus on IP Licensing
TiVo, whose stock reached a 52-week low Friday, is exiting the box-building business, said CEO Enrique Rodriguez on the company’s Q1 earnings call Thursday. Shares closed 1.2 percent lower Friday at $13.85. TiVo inked a deal with a “major device…
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manufacturer as our direct-to-consumer box partner” that will take over retail sales, outside of TiVo.com, through Amazon and Best Buy, Rodriguez said. TiVo will continue to sell direct through its own website, fulfilling products through the box manufacturer, he said. Due to the “broad range of potential outcomes for the company,” Chief Financial Officer Peter Halt didn’t provide financial estimates for fiscal 2018. Overall Q1 revenue dropped 7.9 percent to $189.9 million over the year-ago quarter, said the company, driven by declines in legacy TiVo IP licenses, hardware and other products. The operating loss widened to $9 million from $5.3 million. TiVo’s Experience 4 upgrade app, delivered to the retail market in Q4, will become broadly available for MVPDs this quarter, said Rodriguez. The company believes Experience 4’s video discovery capability will be a catalyst for conversions from legacy Rovi guides to the TiVo platform, he said. On consumer electronics, the chief said the company is now focused on IP licensing.