TiVo fourth-quarter loss narrows (Reuters)

NEW YORK (Reuters) - Digital video recorder maker TiVo Inc reported a narrower fourth-quarter loss on Wednesday, beating expectations as it cut marketing costs and pushed its high-definition product.

TiVo shares rose nearly 5 percent to 8.53 in after-hours trading following the quarterly report.

Its net loss decreased to 6.4 million, or 6 cents per share, from a year-earlier 19.5 million, or 20 cents per share. Analysts expected TiVo to post a loss of 11 cents a share, according to Reuters Estimates.

Net revenue for the fourth quarter fell to 74.1 million from 76.9 million, even as service and technology revenues rose to 58.1 million from 57 million.

The monthly churn rate, measuring customer attrition, rose to 1.5 percent from 1.2 percent in the year-ago period. TiVo-owned subscriptions increased slightly from the prior quarter to 1.75 million.

TiVo, whose product allows consumers to record television programs and watch them later, is trying to drive sales of its 299 TiVo HD box rather than the free, standard-definition offer from a year ago. It has also cut its marketing spending.

The result, it said, is that subscription acquisition costs are the lowest they have been in almost two years.

The company is also pressing ahead on deals with cable network operators to sell its service. An agreement with Comcast Corp, for instance, is up and running, with the cable company marketing TiVo to its customers.

TiVo also said it has a deal in place with Cox, although the service is still in a trial stage.

The quarters earnings come several weeks after TiVo won a key court ruling that found EchoStar Communications Corp infringed a TiVo patent. Once an appeal is final, EchoStar will be barred from selling the infringing device.

On January 1 EchoStar Communications split into two companies: Dish Network Corp and EchoStar Corp.

The ruling is expected to help TiVo increase its share of the market, as more cable and satellite TV operators sign deals with it.

At the same time, TiVo has been selling viewing data to the broadcast networks and advertising agencies, creating another stream of revenue with figures that show audience viewing patterns.

For the first quarter, TiVo said it would likely post a net loss in the range of 1 million to 3 million, service and technology revenues in the range of 53 million to 55 million, and adjusted EBITDA in the range of 5 million to 7 million.

Analysts are forecasting a net loss of 2.1 million, revenue of 60.35 million, and EBITDA of 3.68 million.

(Reporting by Paul Thomasch; editing by Jeffrey Benkoe, Gary Hill)