James Delahunty
25 May 2011 2:26
TiVo Inc. has posted a quarterly profit following a legal settlement over patent infringement that provided the DVR maker with a windfall of cash.
The company agreed a settlement with Dish Network Corp and Echostar Corp in a patent dispute that stretches back several years related to DVR technology. It posted a profit of $139 million for the quarter, compared to a $14.2 million loss in the same period a year before.
A $175.7 million gain pushed the company's books into the black for now even as revenue fell by 25 percent to $45.8 million during the quarter.
The settlement agreement called for an initial payment of $300 million and a following $200 million to be paid in six installments before 2017. Both Dish and Echostar are controlled by Charlie Ergen.