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Tivo Customer addition subtracts from loss

Posted on: Wednesday, 30 November 2005, 12:00 CST

TIVO

Customer addition subtracts from loss

SAN JOSE -- A jump in new subscribers helped TiVo Inc. achieve a narrower-than-expected loss for the third quarter but it cautioned Tuesday that its fourth-quarter loss will range from $17 million to $22 million.

Company shares plummeted nearly 10 percent on TiVo's projection that fourth-quarter revenues will fall short of the $47 million analysts were expecting. Sales will be about $43.5 million to $45.5 million.

For the three months ended Oct. 31, the pioneer of digital video recorders lost $14.2 million, or 17 cents per share. That was a 46 percent improvement over a loss of $26.4 million, or 33 cents a share, in the year-ago period. Revenue rose by nearly 30 percent to $49.6 million from $38.3 million in the quarter last year.

NORTHWEST

Wells Fargo lease rejections upheld

NEW YORK -- A U.S. bankruptcy judge Tuesday allowed Northwest Airlines Corp. to reject the leases on 15 commuter jets held by Wells Fargo & Co., turning aside a claim by the lender that Northwest favored other lessors at Wells Fargo's expense.

As part of its Chapter 11 restructuring, Northwest is rejecting leases on up to 200 aircraft of all sizes, and was in court to defend the rejection of 15 CRJ-200s, 50-seat jets under sublet to Pinnacle Airlines, which provides regional links to Northwest.

Wells Fargo contends that Northwest was singling out its leases to preserve more beneficial relationships with other banks. Wells Fargo argues that the airline has older aircraft in worse condition, and it carried more expensive leases more suitable to reject.

DELTA

Bankruptcy judge backs plane sales

NEW YORK -- A U.S. bankruptcy court judge Tuesday approved Delta Air Lines' request to sell some of its airplanes and to reject an Atlanta office lease.

Judge Prudence Carter Beatty said she would allow Delta to sell an undisclosed number of aircraft including Boeing 737, Embraer 120 and Boeing 767 models. No details were available on possible buyers or prices of the planes, nor on the office lease.

The ruling came as Delta and its pilots union prepared to present their cases in a fourth day of hearings devoted to Delta's motion to reject their bargaining agreement, a move the airline says it needs to emerge from bankruptcy.

Delta, which filed for Chapter 11 on Sept. 14, has about 50,000 employees, of which some 6,000 are pilots. It is looking for $3 billion in annual cost savings.

NORTHROP

$532 million deal won from Air Force

Northrop Grumman Corp. said Tuesday it won a $532 million U.S. government contract for design and improvements to a fleet of aircraft used for long-range air-to-ground surveillance.

The five-year contract, awarded by the U.S. Air Force in Melbourne, Fla., covers engineering, design, development, integration, test and delivery of enhancements and upgrades to the Joint Surveillance Target Attack Radar System (Joint STARS), Los Angeles-based Northrop Grumman said.

--From news services

Source: Daily Breeze

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