Digital video recorder company Tivo reported better than expected earnings for its first quarter on Wednesday on its mass distribution strategy and management of subscription acquisition costs.

Net income for the first fiscal quarter was $3.64 million, or 4 cents per share, compared to $835,000, or 1 cent per share, in the year-earlier period. Revenue was $54.9 million, compared with $58.1 million a year ago. Analysts were expecting a 1 cent per share loss on revenue of $55.6 million, according to a poll by Thomson Reuters.

This quarter was about improving our financial profile by managing our subscription acquisition costs, making progress on our key growth initiatives such as our mass distribution strategy, and protecting our intellectual property, said Tom Rogers, President and CEO of TiVo.

The company said it expects a second quarter loss between $2 million and $4 million with sales between $53 million and $55 million

The number of Tivo-Owned subscription gross additions for the quarter was 48,000 compared to 57,000 a year ago.