TiVo Inc. (Nasdaq: TIVO) said Tuesday its losses increased for the first quarter, as revenue for the company�s service and technology decreased, while expenses related to subscriber acquisitions increased.
For the first quarter, the digital video recorder maker posted a net less of $14.2 million, or a loss of 13 cents per share, compared with a loss of $3.9 million, or a loss of 4 cents per share, for the equivalent quarter last year.
Analysts polled by Thomson Reuters expected a loss of 16 cents per share.
Revenue totaled $61.4 million, an increase from $55.1 million a year earlier. Excluding hardware, revenue decreased 11% to $43.2 million. Analysts expected $42.84 million for the quarter.
TiVo reported 20%� higher expenses for the quarter, while costs associated with subscriber acquisitions jumped to $3.2 million, from $982,000 for the equivalent quarter of fiscal 2009.
�This quarter we continued to aggressively drive our long-term growth initiatives in the U.S. and internationally through strategic partnerships that further distinguish TiVo as a leader in advanced television solutions and bring the TiVo experience into more homes though new distribution partners,� said president and CEO Tom Rogers.
Legal costs plagued the Alviso, Calif.-based company during the quarter, as it pursues a patent infringement suit against DISH Network Corp. (Nasdaq: DISH) and EchoStar Corp. (Nasdaq: SATS).
Following a favorable decision by the U.S. Court of Appeals of March 4, the ruling against DISH was suspended in May, and an en banc hearing for reconsideration was granted to DISH. The initial dispute of whether DISH and EchoStar violated TiVo�s DVR patent extends back to 2004.
If Tivo is ultimately granted damages and fines in the case, estimates of more than $300 million could be awarded to the DVR pioneer.
�We remain confident in our position as we believe the facts continue to support the well-reasoned and carefully applied decision from the Texas court, just as the facts supported our case the two prior times we argued an appeal in front of Federal Circuit judges,� TiVo CEO Rogers said.
Guidance from the company for the second quarter include revenue from its service and technology business to reach between $40 million and $42 million, and a net loss range of ($17) million and ($19) million.
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