(MENAFN- ProactiveInvestors) () jumped in morning trades after the digital video recorder maker upbeat results for its fiscal first quarter aided by higher subscriptions.
Shares rose 4.7 percent to $10.85 at 9:47 a.m. in New York paring this year’s slump to 7.9 percent.
Hurt by higher costs net income fell to $7.9 million in the three months ended April 30 from $8.1 million a year earlier the San Jose California-based company said in a statement late yesterday.
On a per-share basis however profit rose by a cent to 8 cents on lower share count.
Revenue rose about 7.2 percent to $114.7 million.
Analysts on average had expected a profit of 7 cents per share and revenue of $91.5 million according to .
Services and technology revenue a closely watched metric that excludes hardware sales increased another 7 percent to $92.4 surpassing the company’s guidance.
added about 121600 subscriptions in the latest period ending the quarter with more than 5.8 million up 27 percent from the year-earlier period.
The churn rate or the percentage of subscribers who terminated service was 1.4 percent unchanged from the year-ago period.
's set-top boxes are in high demand from cable users as they also allow access to online video services such as Inc Hulu and Inc's YouTube.
sells subscriptions directly to consumers with its video recorders and also licenses its technology to cable TV operators that rent recorders to subscribers.
In a separate statement said it bought Poland-based Cubiware to expand into 25 countries.
Cubiware which provides software for pay-TV operators has customers across Latin America Europe the Middle East and Asia.
expects the deal to add to adjusted EBITDA in the year ending in January.
Looking ahead projected net income of $7 million to $10 million and $94 million to $97 million in service and technology revenue compared with the consensus of $11 million in net income and $93.6 million in revenue according to .
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