As part of the settlement, Tivo and Motorola, Cisco, and Time Warner Cable agreed to dismiss all pending litigation between the companies. Tivo will recognise a portion of the payment as past damages during the second quarter and the remainder over time.
The company intends to provide additional details regarding the timing of revenue recognition in its second quarter fiscal year 2014 earnings report. Further, as a result of this settlement, Tivo expects net income and Adjusted EBITDA to benefit from lower litigation spend in the remainder of its fiscal year ending 31 January 2014 and beyond.
In conjunction with the settlement, Tivo's board of directors approved a major expansion of Tivo's stock repurchase authorisation. The board's action doubles the size of the authorisation from USD 100 million to 200 million and extends the stock repurchase plan for an additional two years, until 29 August 2015.
