Tivo Inc. (TIVO) has reported a 16.78 percent fall in profit for the quarter ended Oct. 31, 2015. The company has earned $5.28 million, or $0.06 a share in the quarter, compared with $6.34 million, or $0.06 a share for the same period last year. On an adjusted basis, net profit for the quarter was $9.88 million, when compared with $7.12 million in the last year period. Revenue during the quarter grew 11.72 percent to $132.32 million from $118.43 million in the previous year period. Gross margin for the quarter contracted 262 basis points over the previous year period to 55.40 percent. Total expenses were 87.88 percent of quarterly revenues, up from 86.83 percent for the same period last year. That has resulted in a contraction of 105 basis points in operating margin to 12.12 percent.
Operating income for the quarter was $16.04 million, compared with $15.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $29.29 million compared with $27.67 million in the prior year period. At the same time, adjusted EBITDA margin contracted 122 basis points in the quarter to 22.14 percent from 23.36 percent in the last year period.
Tom Rogers, president and chief executive officer of TiVo, said, "This was a strong quarter of execution and growth. We posted record Service and Software & Technology revenue. Our continued innovation is leading to new distribution deals as well as a strengthening in our existing operator relationships. This drove an acceleration in the growth of MSO service revenue in the third quarter, which was up 60% year-over-year. In addition, the turnaround in the TiVo-Owned business continues as we launched the innovative TiVo BOLT and gross additions were up 44% year-over-year, our ninth straight quarter of double-digit growth. Our business trends are improving, and as we move forward, we believe we are well positioned to deliver strong results for the full fiscal year and beyond."
For the fourth-quarter 2016, Tivo expects net loss to be in the range of $5 million to $8 million.
Operating cash flow improves significantly
Tivo Inc. has generated cash of $23.15 million from operating activities during the nine month period, up 36.21 percent or $6.15 million, when compared with the last year period. The company has spent $0.02 million cash to meet investing activities during the nine month period as against cash outgo of $101.47 million in the last year period.
The company has spent $60.01 million cash to carry out financing activities during the nine month period as against cash outgo of $21.03 million in the last year period.
Cash and cash equivalents stood at $140.90 million as on Oct. 31, 2015, down 4.93 percent or $7.31 million from $148.21 million on Oct. 31, 2014.
Working capital drops significantly
Tivo Inc. has witnessed a decline in the working capital over the last year. It stood at $415.23 million as at Oct. 31, 2015, down 48.64 percent or $393.24 million from $808.47 million on Oct. 31, 2014. Current ratio was at 2.08 as on Oct. 31, 2015, down from 4.25 on Oct. 31, 2014.
Cash conversion cycle (CCC) has increased to 21 days for the quarter from 17 days for the last year period. Days sales outstanding went up to 35 days for the quarter compared with 30 days for the same period last year.
Days inventory outstanding has decreased to 30 days for the quarter compared with 31 days for the previous year period. At the same time, days payable outstanding was almost stable at 44 days for the quarter, when compared with the previous year period.
Debt comes down
Tivo Inc. has recorded a decline in total debt over the last one year. It stood at $317.25 million as on Oct. 31, 2015, down 9.62 percent or $33.79 million from $351.04 million on Oct. 31, 2014. Short-term debt stood at $132.50 million as on Oct. 31, 2015. Total debt was 28.31 percent of total assets as on Oct. 31, 2015, compared with 27.14 percent on Oct. 31, 2014. Debt to equity ratio was at 0.96 as on Oct. 31, 2015, up from 0.86 as on Oct. 31, 2014. Interest coverage ratio deteriorated to 2.65 for the quarter from 4.88 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
