There's more to TiVo
The company proved it last night in a terrific second-quarter report. Sales jumped 19% year over year, and the $0.17 net loss per share was smaller than anticipated. The centerpiece of the report was $15.6 million in technology-license revenue, more than double the year-ago figure, and now a solid one-fourth of TiVo's total sales.
These software and technology licenses are very important to TiVo's future. Sure, the company is still selling set-top boxes, but the subscriber numbers are dwindling in that segment, and management clearly has its sights set elsewhere.
As an example of TiVo's softer strategy, Virgin Media
That said, hardware isn't entirely a thing of the past. TiVo is currently manufacturing satellite TV boxes for DIRECTV
All of this adds up to the biggest one-day jump TiVo has seen since April, when shares moved 51% overnight on a legal settlement. Its long-running intellectual property battle with DISH Network
Fellow Fool Rick Munarriz keeps wondering when TiVo might get its mojo back. I think the mojo is already there in spades, if you know what to look for. Our watchlist feature can help you spy the signs: Just click here to add TiVo to your own watchlist, and then marvel at the wealth of news and Foolish analysis you'll have flowing your way.
Fool contributor Anders Bylund owns shares of TiVo but holds no other position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio, follow him on Twitter or Google+, or peruse our Foolish disclosure policy.