TiVo (TIVO) Misses Q3 EPS by 2c

TiVo (NASDAQ: TIVO) reported Q3 EPS of $0.06, $0.02 worse than the analyst estimate of $0.08. Revenue for the quarter came in at $132.3 million versus the consensus estimate of $101.18 million.

For the fourth quarter of Fiscal Year 2016, TiVo anticipates service and software & technology revenues in the range of $101 million to $104 million.

TiVo expects Adjusted EBITDA excluding litigation expense and costs related to its CEO's transition to be in the range of $25 million to $28 million. As previously disclosed, we estimate these excluded transition costs to be in the range of $11 million to $12 million based on TiVo's stock price on November 17, 2015. Net income (loss), which includes these transition costs, to be in the range of $(8) million to $(5) million with net income (loss) before these transition costs expected to be $4 million to $6 million.

Included in the fourth quarter financial guidance is continued service revenue growth driven by our operator focused efforts. This will be slightly offset by anticipated lower technology revenue. Additionally, included is approximately $2 to $3 million of increased TiVo-Owned subscription acquisition spend versus the third quarter from our expanded marketing campaign around TiVo Bolt, and $2 million of lower MSO hardware margin as we anticipate selling fewer hardware units to MSOs during the fourth quarter as compared to the third quarter.

Management's guidance includes Adjusted EBITDA, a non-GAAP financial measure as defined in Regulation G. TiVo has provided a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) in the attached schedules solely for the purpose of complying with Regulation G and not as an indication that EBITDA or Adjusted EBITDA is a substitute measure for net income (loss).

For earnings history and earnings-related data on TiVo (TIVO) click here.

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