TiVo Inc , which makes digital video recorders, reported a quarterly profit, reversing a year ago loss, thanks to the blockbuster patent settlement it reached with Dish Network Corp and EchoStar Corp .

TiVo posted a profit of $139 million, or $1.04 a share, compared with a loss of $14.2 million, or 13 cents a share, in the same period a year ago, it said on Tuesday.

The stronger results came as revenue fell 25 percent to $45.8 million in its fiscal first quarter and are largely a reflection of a $175.7 million gain from the settlement.

The agreement with Dish and EchoStar, both controlled by Charlie Ergen, called for an initial payment to TiVo of $300 million, with another $200 million to be paid in six equal annual installments between 2012 and 2017.

(Reporting by Paul Thomasch; editing by Andre Grenon)

Settlement