TiVo 2Q Earnings Down, But 6% Rev Rise

ALL THAT TIVO GAINED IN the first quarter of this year--reporting its
first profits--was lost in the second quarter.

TiVo took a hit, losing $17.7 million in its second-quarter earnings
period. Back in April, the decade-old company eked out its first-time
profit of $835,000 for the first quarter.

Worse still, the second-quarter drop was lower than the same period of
a year ago, when the digital video marketer suffered a $6.4 million
drop.

Much of TiVo's problem this quarter was due to an inventory write-off
charge of $11.2 million from its supply of standard-definition DVRs.
TiVo has now made a big move to manufacturing and selling HD DVR
boxes.

On a positive note, revenues rose 6% to $62.7 million. The
7-cents-a-share loss was a bit more than Wall Street analysts were
expecting at 5-cents-a-share decline.

For the future, TiVo has struck a deal with big cable operator Comcast
to bring TiVo service to some of its platforms, including Scientific
Atlanta set-top boxes. It is also in agreement with DirecTV to give
users who have DirecTV DVRs the ability to add on TiVo software to
those units.

Overall, TiVo-owned subscriptions totaled 1.71 million--up 136,000 on
an annual basis compared to the year ago-period. TiVo had additions in
the second quarter of 41,000, compared to 74,000 a year ago.

Subscriptions were impacted as retailers switched from the
standard-definition DVR TiVo product to the HD DVR TiVo product.

All subscriptions--those owned by TiVo or distributed by providers
such as DirecTV--were at 4.2 million as of second-quarter 2007, down
5% from a year ago. Much of that loss came at the expense of DirecTV,
which is now selling DVRs under its own brand name to users.