TIVO's FQ2 service & technology revenue totaled $86.6M (+13% Y/Y), in-line with guidance of $86M-$88M but slightly below an $87.7M consensus. FQ3 service/tech revenue is expected to be in a range of $86M-$89M, below an $89.5M consensus.
Net income guidance is at $6M-$9M, which compares with FQ2 net income of $9.3M ($0.08/share).
Along with its FQ2 results, TiVo has announced a $350M buyback, good for repurchasing over 1/5 of shares at current levels. TiVo plans to use $100M of the buyback during FY15 (ends Jan. '15), and the remainder during the next two fiscal years. TiVo had $782M in cash/short-term investments at the end of July.
263K subscribers were added in FQ2, up from 255K in FQ1 and raising the total to 4.8M (+33% Y/Y). 283K MSO subs were added, and 20K TiVo-owned subs lost.
MSO-related service revenue rose 36% to $10.3M, and TiVo-owned service revenue fell 7% to $22.4M. Other services revenue rose 29% to $4.2M.
GAAP R&D spend fell 5% Y/Y to $25.1M, and sales/marketing spend rose 13% to $10.3M.
FQ2 results, PR