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Shares of TiVo (NASDAQ: TIVO) jumped as much as 15.4% higher on Friday morning, following the release of a strong third-quarter report.
During the third quarter, the entertainment information tools specialist formerly known as Rovi completed the acquisition of digital video recorder veteran TiVo, and then adopted the TiVo name for the whole business. So this report compares TiVo's third quarter of 2016 to Rovi's year-ago period.
On that note, TiVo's third-quarter sales landed at $153.1 million, a 33% year-over-year increase thanks to the merger-powered revenue boost. On the bottom line, GAAP earnings stopped at $0.54 per diluted share, up from a $0.22 loss per share in the third quarter of 2015.
Looking ahead, TiVo now expects full-year revenue of approximately $625 million. That's up from the $505 million target the company guided for three months ago, again mostly due to the closing of the TiVo buyout.
The two-headed entertainment management business is indeed building a head of steam even as Rovi and TiVo work to fully complete the integration.
In the third quarter, just before putting the final John Hancock on the TiVo merger, Rovi signed a fresh 10-year license agreement with satellite TV broadcaster DISH Network. About a month into the currently ongoing fourth quarter, the recently combined company signed long-term contract renewals with some of the largest consumer electronics providers on the market.
TiVo's revenue streams are getting both stronger and more predictable these days. This is true whether you're comparing this new business to the old TiVo or to the Rovi parent.
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