By The Associated Press, Associated Press
TiVo climbed more than 3 percent before markets opened Wednesday after the pioneer in digital video recording technology reported better-than-expected revenue in its most recent quarter and issued an optimistic outlook.
The company has been embroiled in legal suits with pay TV companies, saying that they are using its patented technology in DVRs. But the company said late Tuesday that it believes it has now achieved sustained profitability as it posted solid revenue increases from its technology and hardware.
That is a significant milestone, according to Jefferies & Co.
Analyst Brian Fitzgerald sees plenty of opportunity for TiVo's core business, and company management recognizes growth potential in Europe and Latin America, among other markets. He raised his price target on the shares to $15 from $14.
The revenue outlook for the third quarter was also surprisingly strong, Fitzgerald said.
Overall revenue in the most recent quarter grew 53 percent to $100.1 million, which topped Wall Street expectations for $91.1 million, according to FactSet.
Shares of TiVo Inc., based in San Jose, Calif., climbed more than 3 percent, or 37 cents, to $11.34 in pre-market trading. The stock price has ranged from $8.73 to $14.10 over the past year.