TiVo (TIVO) has reported a 49.19 percent plunge in profit for the quarter ended Oct. 31, 2014. The company has earned $6.34 million, or $0.06 a share in the quarter, compared with $12.49 million, or $0.10 a share for the same period last year.

Revenue during the quarter went up marginally by 1 percent to $118.43 million from $117.26 million in the previous year period. Gross margin for the quarter expanded 55 basis points over the previous year period to 58.02 percent. Total expenses were 86.83 percent of quarterly revenues, down from 90.20 percent for the same period last year. This has led to an improvement of 337 basis points in operating margin to 13.17 percent.

Operating income for the quarter was $15.60 million, compared with $11.50 million in the previous year period.

Tom Rogers, President and CEO of TiVo, said, "This was a strong quarter for TiVo, highlighted by continued organic growth as well as significant progress establishing a more efficient capital structure. Adjusted EBITDA increased 16% over last year, and our growing relationships with operator partners led to the net addition of 328,000 total TiVo subscriptions, bringing total subscriptions to over 5.1 million, and 37% year-over-year growth in MSO revenue.

Further, we repurchased $128 million or 9.9 million shares in the quarter and issued a new convertible debt offering with the intention to use the proceeds to repurchase the shares underlying our existing convertible security in order to reduce the dilution related to our existing convertible debt. We believe that our operational progress and our improving capital structure should translate into increased shareholder value."

For the fourth quarter of fiscal 2015, TiVo anticipates service and technology revenues in the range of $87 million to $90 million. TiVo expects Adjusted EBITDA to be in the range of $21 million to $24 million and net income to be in the range of $2 million to $5 million.

Cash Flow

Tivo has generated cash of $17 million from operating activities during the nine month period, down 96.59 percent or $481.08 million, when compared with the last year period.

The company has spent $101.47 million cash to meet investing activities during the nine month period as against cash outgo of $374.72 million in the last year period.

The company has spent $21.03 million cash to carry out financing activities during the nine month period as against cash outgo of $84.21 million in the last year period. It has borrowed net of $224.54 million through debt. It has spent net of $203.84 million on repurchase of common stocks.

Cash and cash equivalents stood at $148.21 million as on Oct. 31, 2014, down 24.48 percent or $48.05 million from $196.26 million on Oct. 31, 2013.

Cash conversion cycle (CCC) has increased to 17 days for the quarter from 3 days for the last year period. Days sales outstanding were almost stable at 30 days for the quarter, when compared with the last year period.

Days inventory outstanding has increased to 31 days for the quarter compared with 29 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 56 for the same period last year.