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TiVo shares rise on upbeat Barron's report

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The Associated Press 2:41 PM Monday, February 6, 2012

LOS ANGELES — Shares of digital video recorder maker TiVo Inc. rose Monday, following an upbeat story on the company by Barron's magazine, despite the company disclaiming that its chief executive had predicted a "break even or better" year ahead.

THE SPARK: Barron's magazine said in a story published Saturday that TiVo CEO Tom Rogers predicted the company would have a "break even or better" fiscal 2013 in terms of earnings before interest, taxes, depreciation and amortization. That compared with analysts' expectation that the company will lose an adjusted 43 cents per share in the year through January 2013.

TiVo issued a securities filing Monday saying that Rogers did not make such a projection nor did it affirm the figure.

Still, the story noted that the company is sitting on $7 per share in cash. It added that with several patent litigation wins in court, the company would be an attractive takeover target for technology giants Microsoft Corp. or Google Inc. at double its current share price.

THE BIG PICTURE: TiVo, which is based in Alviso, Calif., is a pioneer in making digital video recorders. After years of litigation, Dish Network Corp. and its sister company, EchoStar Communications, agreed last April to settle the case with TiVo for $500 million. AT&T Inc. also settled with TiVo in early January for $215 million, an amount that could grow if AT&T's DVR subscriber base exceeds certain thresholds.

THE ANALYSIS: With key setllements behind it, TiVo looks to grow through business deals and licensing revenue. It still has a pending suit against Verizon Communications Inc. on grounds similar to previous cases it settled.

Since the AT&T settlement was announced, the stock is up about 32 percent. Barron's said analysts put a target price on the shares at $17 to $18.

SHARE ACTION: TiVo shares were up 52 cents, or 4.6 percent, at $11.75 in afternoon trading Monday. They are up 32 percent since closing at $8.92 on Jan. 3, the day it announced a settlement with AT&T.

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February 06, 2012 07:37 PM EST

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