Digital video recorder maker TiVo reported better-than-expected quarterly revenue and profit, helped by higher subscriptions.
Shares of the company, which also said it bought Poland-based Cubiware, rose 6.2% in extended trading yesterday.
TiVo's set-top boxes are in high demand from cable users as they also allow access to online video services such as Netflix, Hulu and Google's YouTube.
The company's total subscriptions rose about 27% to 5.8 million in the first quarter ended 30 April.
TiVo, whose clients include DirecTV, is trying to partner with more cable TV operators to grow its business.
TiVo sells subscriptions directly to consumers with its video recorders and also licenses its technology to cable TV operators that rent recorders to subscribers.
The company sells its products through cable TV partners such as Virgin Media in the UK, ONO in Spain and Com Hem AB in Sweden.
TiVo said the acquisition of Poland-based Cubiware would allow it to expand into 25 countries.
Cubiware, which provides software for pay-TV operators, has customers across Latin America, Europe, the Middle East and Asia.
"We will continue to look at acquisitions that we think make strategic sense," TiVo chief executive Tom Rogers said in an interview, adding the company is looking at "a lot of things".
TiVo expects the deal to add to adjusted EBITDA in the year ending 31 January.
TiVo's net income fell to $7.9 million in the first quarter, from $8.1 million a year earlier, hurt by higher costs. On a per-share basis, however, profit rose by a cent to eight cents on lower share count.
Total revenue costs rose about 16% to $44.1 million. Net revenue rose about 7.2% to $114.7 million.
Analysts on average had expected a profit of seven cents per share and revenue of $91.5 million, according to Thomson Reuters I/B/E/S.
The San Jose, California-based company's shares, which closed at $10.36 on the Nasdaq, were at $10.84 after the bell.
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