Digital video recording company TiVo reported a net loss of $34.5 million for the second quarter, an improvement over last year’s net loss of $50.2 million. Execs attributed the growth to signing up 40,000 new subscribers and belt tightening put into effect earlier this year.
Revenue for the quarter increased 28% to $4.1 million, compared to $3.2 million last year.
Announcement comes only a day after TiVo said that it has raised nearly $52 million in an additional round of financing from investors.
“This is a major quarter for TiVo that ensures the company’s continued growth and financial future,” said CEO Mike Ramsay. “Subscriber growth momentum seems to be very strong, thanks to price cuts by Sony and Phillips. We now have 229,000 subscribers.”
For the third quarter, the company anticipated adding 40,000 to 45,000 new subscribers, as well as a 20% to 30% increase in revenue to $4.9 million to $5.3 million.
Additionally, the company unveiled a service upgrade for consumers who have a DirecTV receiver for their TiVo: All existing customers with that combination will get access to a dual tuner, which will allow them to record one show while watching another.
Ramsay said that the hardware has been in the DirecTV recorder from the get-go, and the company is now activating it via a software upgrade that will be sent to TiVo users in the next few weeks. Stand-alone TiVo units will not receive the upgrade.
This technology upgrade puts the TiVo in direct competition with Microsoft’s UltimateTV, which offered the dual tuner out of the box.
“We are really attacking our competitive position with Microsoft’s UltimateTV,” Ramsay said. “Their only outlet is the DirecTV system. It’s really the heart of where we want to compete with them.”