Innovation is expensive. So are legal fees. Those are the hard lessons TiVo (TIVO) learned last year.
TiVo beat expectations, coming out of 2009 with $68.4 million in revenue, up from $59.2 million. Services and tech revenue brought in $45.3 million of that total, while their hardware sales gave them the rest.
Thomson Reuters gave them a $44.3 million estimate.
Although stock holders must have been happy with the news that the DVR manufacturer received a positive ruling in its patent infringement case against DISH Networks and EchoStar, and stood to collect about $300 million in damages and contempt sanctions.
But legal fees and research and development for TiVo Premiere are costing the company: In the fourth quarter, TiVo lost $10.2 million, or 9 cents per share, compared to a loss of $3.6 million, or 4 cents per share, in 2008’s same quarter.
They also continue to hemorrhage subscribers, reporting that they lost 730,000 consumers during the past year, a 22% decline. They have 2.605 million subscribers as of Jan. 31, 2010.
Here’s more from the Associated Press:
Looking ahead, TiVo said it expects to book service and technology revenue of $41 million to $43 million in the first quarter of its fiscal year 2011, far below the $48.8 million expected by analysts. The company forecast a loss of $19 million to $21 million. Analysts were expecting a loss of $5.5 million.
For fiscal 2010, TiVo lost $23.9 million, or 23 cents per share, compared with a profit of $103.6 million, or $1.01 per share, in fiscal 2009. The prior year included about $100 million in damages and interest it received from Dish Network Corp. on a patent-rights case. TiVo had sued Dish in 2004 for infringing on a DVR patent that allows viewers to pause, rewind and replay live TV.
Last week, TiVo also prevailed in a contempt hearing stemming from the patent-rights case and stands to collect about $300 million more in damages and contempt sanctions it has been awarded. Dish had redesigned its technology while the case was going on, but a federal court said even the workaround violated TiVo’s patent. Dish had appealed and lost. Now, the satellite TV operator is asking for a review by the full bench of U.S. Court of Appeals for the Federal Circuit in Washington.
Shares of TiVo, based in Alviso, were up 22 cents to $17.28 in after-hours trading.
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