"Additionally in another indication of our innovation, the National Academy of Television Arts & Sciences awarded us our 4th Emmy Award; this time for Technical and Engineering Achievement for Personalized Recommendation Engines for Video Discovery.
"Our operator business continues to grow nicely as both domestic and international cable operators that are facing increased competition and heightened demand for advanced television services continue turning to TiVo to help drive improved performance through higher customer satisfaction, lower churn, and improved customer acquisitions. We've added almost one million new TiVo subscriptions from our operator relationships during the last year, and we expect to continue our strong subscription growth as Atlantic Broadband, Cable One, Com Hem, GCI, Midcontinent, and Mediacom have all recently gone live or are close to launching a TiVo solution. Com Hem, the largest operator in Scandinavia, recently soft launched, and will be followed by a much more aggressive marketing push toward the end of the year. Beyond the subscription growth potential, this launch is a meaningful strategic milestone for TiVo as it represents our first integration with an IPTV provider.
"Additionally, further underpinning the value of the TiVo experience, we are finding that the more embedded we are with operators, the more products and functionality they want from TiVo. As a result, we've been successful at driving broader engagement with many of our distribution partners. With the launch of TiVo Mini, our multi-room client, we've seen strong subscription growth from several of our operators, such as Suddenlink. We are now focused on adding to our multi-screen offering and will be launching our TV Everywhere portal, starting with Atlantic Broadband and RCN in the U.S. and Com Hem internationally, which we believe will allow us to quickly gain meaningful deployment ahead of the set-top box replacement cycle. Additionally, several of our U.S. distribution partners recently began deploying TiVo software onto the Pace XG1 gateway, providing operators with yet another way to deploy TiVo to their customers, and highlighting our ability to port onto multiple hardware configurations.
"On the intellectual property front, we settled our ongoing litigation with Cisco and Motorola for $490 million, bringing the total from awards and settlements related to the unauthorized use of our Time Warp and certain other patents to approximately $1.6 billion in damages and future consideration. This outcome is significant and it materially strengthens TiVo's balance sheet. To that end, at the end of second quarter, TiVo had more than $1 billion of cash and short-term investments. This included the impact of $60 million or 5.4 million shares' worth of stock repurchases in the second quarter, representing approximately 15% of beginning second quarter net cash. Going forward, we will continue to focus on optimizing our use of capital to drive incremental shareholder value."
Rogers concluded, "The combination of a new financial trajectory for the business, very substantial cash resources, great new innovation in our product and feature offering as evidenced by the launch of Roamio, and leadership in the provision of advanced television to the cable industry, creates a very strong foundation for TiVo's continued growth."
Management Provides Financial Guidance
For the third quarter of Fiscal Year 2014, TiVo anticipates service and technology revenues in the range of $80 million to $82 million. Driving the increase is a full quarter of Cisco/Motorola revenue recognition and continued growth in MSO revenue. This will be partially offset by lower NRE revenue as the second quarter included significant revenue recognition relating to a development milestone on one of TiVo's deployments, which will not occur in the third quarter.
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