While Q3 Profits Slide at DISH Network (DISH), Investors Treated With Subscribers Gains and Special Dividend

November 9, 2009 10:52 AM EST

DISH Network Corporation (Nasdaq: DISH) reported a 13 percent decline in net profit in the third quarter but gained subscribers.

The company showed third-quarter earnings of 41 cents per share, excluding special items, missing the market consensus of 44 cents. Revenue for the quarter was $2.89 billion, which compares to the estimate of $2.93 billion.

The nation's second-largest satellite television provider reported a net profit of $80.5 million, or 18 cents per share, falling 1.5 percent from the year-ago quarter results of $92 million, or 20 cents per share.

The company gained 241,000 new subscribers, driving the company's total users to 13.9 million.

Dish Network stated that it will award a special dividend of $2 per hare. the company did not give a reason for the special dividend.

Hampering Dish Network in the third quarter was the ongoing legal dispute between the Company and TiVo Inc (Nasdaq: TIVO). The lawsuit filed by TiVo, dealing with patent infringement regarding DVR technology, cost Dish Network $132 million in legal expenses in the third quarter.

TiVo has been awarded a total of $400 million so far in damages from the technology patent dispute.

Shares for Dish Network in current market movement are up 5.33 percent, to $20.16. TiVo shares are up 1.19 percent to $11.08.


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DISH 20.70

+0.33 +1.62%
Volume: 3,047,226
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TIVO 10.87

+0.14 +1.30%
Volume: 1,865,386
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