TiVo's failure to anticipate how quickly consumers and retailers would fall in love with HDTV products added static to a fuzzy financial picture.
The digital video recorder pioneer said late Wednesday that it took an $11.2 million write-down in the quarter ended in July for leftover standard DVRs. That drove results far below its guidance and analyst forecasts.
"We're at a turning point in the retail environment," CEO Tom Rogers told analysts. HDTV growth "progressed at a pace that surprised many in the industry, including us."
That contributed to a 145,000 drop in TiVo subscriptions, to 4.2 million. The quarter saw the first decline in its most profitable subscriptions: people who buy TiVo (TIVO) service directly from the company.
About 2.5 million customers still get TiVo through DirecTV, (DTV) which now is promoting its own DVR.
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