TiVo Inc. (NASDAQ: TIVO), the pioneering digital video recorder company, saw its Q4 period loss decline (after three profitable quarters) after the comp, and saw beefier margins but a 20% drop in revenue. TiVo's reason behind the revenue decline was that the retail market -- including its biggest retailer partner, Best Buy, Inc. (NYSE: BBY) -- was suffering badly and sales were down as a result. In other words, TiVo is suffering with just about every other manufacturer with a product in retail.The company's CEO, Tom Rogers, did indicate that the company would experience a profitable year ahead. Rogers also cautioned about future guidance, indicating a lot of cloudiness on the horizon this year, even as it sees profitability returning in future quarters. With TiVo's $200 million cash/cash equivalents hoard, the company's cautious outlook hopefully will be quashed when sales of HDTVs return to retail and all those new TiVo HD recorders fly off the shelves along with them.
TiVo's newer products software that allow in-couch pizza ordering and DVD rentals and the company has been very innovative with its partnerships to keep customers hooked on the ultimate convenience: ordering food, movies and more while vegging in front of the television. With a Q4 loss of $3.6 million and revenue just shy of $60 million, but with expenses dropping 28% and gross margins rising, TiVo is hurting but not nearly as bad as other companies in the current recession. For any company to predict profitable quarters ahead -- especially one in consumer electronics -- is amazing.
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