TiVo (NASDAQ:TIVO) interrupted a multiyear string of losses yesterday by posting a profit for its second quarter. A recent settlement with technology heavyweights Google and Cisco Systems helped boost the company's quarterly results.

Google and Cisco agreed to pay TiVo $490 million in June to settle claims they had copied TiVo's digital video recording technology. While this amount won't have a material impact on either Google or Cisco, it means the difference between a profit and a loss for TiVo. As part of the deal, TiVo gets to collect licensing fees from both companies. Moreover, TiVo CEO Tom Rogers was quoted as saying he believes this significant increase in licensing revenue from its latest litigation settlement will translate into long-term profitability for the company.

For its second quarter, TiVo reported its highest net income in the company's history, with a profit of $268.9 million, or $1.96 per share. Service and Technology revenues rose 42% year over year to $77 million in the quarter, of which the Cisco-Google settlement contributed $6.1 million. Meanwhile, net revenue increased to $100 million in the period. Additionally, TiVo grew its subscriber base to 3.6 million, which is a 33% increase from a year ago.

TiVo has a strong cash position thanks to past litigation wins with companies such as AT&T, DISH Network, and Verizon Communications. However, TiVo's latest victory over Google and Cisco brings its total winnings to around $1.6 billion. Looking ahead, TiVo forecasts third-quarter net income of between $6 million and $8 million, helped by increased licensing revenues and significantly lower litigation expenses.