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TiVo Reports Results for the Fourth Quarter and Fiscal Year Ended January 31, 2013

TiVo Reports Results for the Fourth Quarter and Fiscal Year Ended January 31, 
2013 
SAN JOSE, CA -- (Marketwire) -- 02/26/13 --  TiVo Inc. (NASDAQ: TIVO) 


 
--  Achieved Adjusted EBITDA profitability, excluding litigation, in the
    fourth quarter
--  Highest ever quarterly Service & Technology revenue of $65.7
    million in the fourth quarter, an increase of 31% year-over-year,
    exceeding guidance
--  Highest ever annual Service & Technology revenue in Fiscal Year
    2013; grew 24% over Fiscal Year 2012
--  Net Loss of ($15.8) million in the fourth quarter
--  MSO revenue grew 83% year-over-year in the fourth quarter
--  Total subscriptions topped three million; grew 38% over Fiscal Year
    2012
--  Significant progress on U.S. and international operator deals; GCI
    launched next-gen TiVo service
--  Launched TRA Crossmedia Measurement offering bringing television,
    Internet, and purchase data together in a single-source offering
--  Current business trends should drive Adjusted EBITDA profitability,
    including litigation expense, for Fiscal Year 2014

  
TiVo Inc. (NASDAQ: TIVO), a leader in the advanced television
entertainment market, today reported financial results for the fourth
quarter and fiscal year ended January 31, 2013. 
Tom Rogers, President and CEO of TiVo, said, "We made significant
progress in our business during Fiscal Year 2013, culminating with
Adjusted EBITDA profitability, excluding litigation expense for the
fourth quarter.  We achieved success in five key areas during the
last year.  First, we drove expanded deployment in our current
distribution deals, increasing the total number of TiVo subscriptions
by almost one million over the course of Fiscal Year 2013.  Second,
we continued to increase our footprint both internationally and
domestically, forging important new operator deals with Com Hem,
Cable ONE, Midcontinent, Mediacom, and GCI. Third, we saw significant
additional upside from litigation as we reached a favorable
settlement with Verizon, bringing total damages and consideration
from our intellectual property actions to more than $1 billion to
date.  Fourth, we reduced our R&D in the second half of the year from
its peak in the first quarter of Fiscal Year 2013.  Lastly, we
continued to
 define the future of television through the launch of
new whole-home and multi-screen TiVo offerings." 
For the fourth quarter, service and technology revenues were $65.7
million, which was the highest in TiVo's history.  This compared to
guidance of $63 million to $65 million and $50 million for the same
quarter last year.  TiVo reported a net loss of $(15.8) million,
compared to guidance of a net loss of $(15) million to $(17) million.
This compared favorably to net income of $7.2 million in the same
quarter last year when excluding the $54.4 million in litigation
proceeds from the AT&T settlement.  Adjusted EBITDA was $(2.6)
million, compared to Adjusted EBITDA guidance of a loss of $(2)
million to $(4) million including litigation expense, and compared
favorably to Adjusted EBITDA of $21 million in the same quarter last
year when excluding the $54.4 million in litigation proceeds from the
AT&T settlement. Both net income and Adjusted EBITDA in the fourth
quarter would have exceeded their respective guidance ranges had
litigation spend not been $10.4 million, above previously anticipated
levels of $7 million to $9 million. Excluding, litigation spend,
Adjusted EBITDA was $7.8 million, compared to guidance of $5 million
to $7 million.  
Rogers continued, "We are very excited about the growing distribution
of TiVo and about the deepening relationships we have with operators
around the globe.  This is underscored by the 83% increase in MSO
revenue over last year and the 38% increase in total TiVo
subscriptions.  With upcoming launches of our deals we signed last
year and the run rate on our current deals, we're on pace to drive a
significant number of incremental subscriptions even without
factoring in future deals.    
"More specifically, in the U.K., our offering is helping drive
significantly improved pay-TV growth and market share gains for
Virgin Media.  This past year Virgin Media added almost 900,000 TiVo
subscriptions to reach a total of more than 1.3 million, or 35% of
their base. As the Virgin Media offering evolves we believe even more
fans of TV in the U.K. will seek out our unique offering.  In Spain,
our deployment with ONO continues to gain momentum and the fourth
quarter was ONO's strongest quarter to date in terms of subscription
additions. 
"Our work with Com Hem in Scandinavia is progressing as our offering
there is in the early testing stages with a full roll-out expected
later this year.  Com Hem is a perfect example of how operators are
beginning to embrace new IPTV video delivery options across their
networks and how TiVo can take them beyond the set-top box to provide
a best-in-class experience through virtually any type of video
delivery and on any type of device. The full IPTV multi-screen
experience we are developing for Com Hem is one we expect more
operators will be extremely interested in deploying as their
infrastructures are upgraded and enhanced.  
"Turning to our U.S. operator efforts, the strategic benefit of
getting TiVo in front of subscribers has motivated many of our
operator partners to look for ways to distribute TiVo beyond a single
advanced-DVR experience.  For example, Suddenlink, which also had its
strongest quarter to date in terms of subscription additions, is now
distributing our TiVo Premiere DVR, our TiVo Mini thin client, and
TiVo Stream.  We believe TiVo Stream is one of the most exciting
television products in years as it allows customers to stream their
favorite shows, the ones they recorded, from a TiVo Premiere series
DVR simultaneously to multiple mobile devices.  
"Additionally, GCI, one of the top 20 largest cable companies in the
country, recently began its initial deployment of TiVo, approximately
four months after the deal was announced. We anticipate several other
U.S. operators will follow GCI as the year progresses.  
"On the TiVo-Owned front, we were pleased with our progress this
quarter as gross subscription additions were up roughly 10% year over
year while churn remained relatively low.  Additionally, our
marketing efforts, which included some modest TV advertising, have
been successful in driving increased brand awareness of TiVo,
something we hope will drive even better results going forward. We
also saw the lowest level of subscription losses in a little more
than four years. 
"The enhancements we continue to make to our product and service
offerings and the progress that we continue to make toward our vision
of a seamless in-home / out-of-home video experience have played key
roles in our ability to engage in new relationships with cable
operators, as well as to provide our existing customers with the best
possible television experience.  In the last year, we've made
important strides in bolstering TiVo's multi-room and multi-device
offerings, making our software scalable across deployments, and
improving our search & discovery functions.  At the same time, we
reduced our overall research and development spend in the second half
of the year from its peak in the first quarter of Fiscal Year 2013. 
"As a result of these investments, we are on track to launch a TV
Everywhere web portal powered by TiVo with our first MSO customer,
which will allow subscribers the opportunity to enjoy video content
on a varie
ty of devices including tablets.  In addition, we will be
releasing our thin-client IP set-top box, TiVo Mini, in retail in the
very near-future, which follows the successful launch of this product
in our operator channel.  Finally, the very popular music service
Spotify, which is now available on the TiVo user interface, is yet
another example of our efforts to deliver a complete entertainment
experience, from television to movies to music, and we'll also be
launching MLB.com on our platform soon to go along with the millions
of content choices on TiVo. 
"On the audience measurement front, our data analytics business
continues to gain traction. We recently announced the launch of the
TRA Crossmedia measurement solution, which combines Internet data,
including display, online video, and social media with our television
viewing and purchase behavior data to create a single cross-media
data measurement source. Advertisers are increasingly demanding
cross-platform measurement, and given the immense benefit a total
view of household activities can bring, we believe this product will
be a valuable addition to our unique insight capabilities.  We
continue to be excited about the potential of this business and are
positioning it to be one of the elements that drives TiVo growth in
the coming years.  
"On the litigation front, we are continuing our efforts to protect
our innovation beyond the successful actions we have had to date,
which have yielded more than $1 billion in damages and consideration.
 Our Motorola litigation is nearing trial and we believe our prior
successes position us well.  Additionally, our pending case against
Cisco and Time Warner Cable continues to move forward as well." 
Rogers concluded, "This was an important year for TiVo as we were
able to execute in five key areas.   Looking ahead to the next fiscal
year, we expect to continue to grow our revenues related to our
current deployment deals, continue our subscription growth, and
continue to efficiently manage our overall research and development
spend.  In addition, we continue to be highly focused on smart
capital allocation to drive increased shareholder value. We also
anticipate that our research analytics business will become a larger
contributor to our growth. We believe that all of this, without even
factoring in the potential upside from pending litigation, will help
us to achieve Adjusted EBITDA profitability in Fiscal Year 2014 and
sustained growth in the years beyond." 
Management Provides Financial Guidance 
For the first quarter of Fiscal Year 2014, TiVo anticipates service
and technology revenues in the range of $60 million to $62 million. 
We expect lower technology revenue in the first quarter as revenue
recognition from key MSO projects is expected to occur in the second
quarter as opposed to first quarter. This will impact the first
quarter negatively but is expected to benefit second quarter
technology revenue significantly, making up for first quarter's
technology revenue shortfall. 
TiVo anticipates net loss in the range of ($16) million to ($19)
million, and an Adjusted EBITDA of ($5) million to ($8) million,
which includes $11 million to $12 million of litigation spend. TiVo
expects to be profitable on an Adjusted EBITDA basis excluding
litigation spend. 
For the full year Fiscal 2014, TiVo continues to anticipat
e that
current business trends should drive Adjusted EBITDA profitability,
including litigation spend.  
This financial guidance is based on information available to
management as of February 26, 2013.  TiVo expressly disclaims any
duty to update this guidance. 
Management's guidance includes Adjusted EBITDA, a non-GAAP financial
measure as defined in Regulation G. TiVo has provided a
reconciliation of EBITDA and Adjusted EBITDA to net income (loss) in
the attached schedules solely for the purpose of complying with
Regulation G and not as an indication that EBITDA or Adjusted EBITDA
is a substitute measure for net income (loss). 
Conference Call and Webcast  
TiVo will host a conference call and Webcast to discuss the fourth
quarter and fiscal year ended January 31, 2013 financial and
operating results and guidance outlook at 2:00 pm PT (5:00 pm ET),
today, February 26, 2013.  To listen to the discussion, please visit
http://www.tivo.com/ir and click on the link provided for the Webcast
or dial (877) 618-4505 (conference ID number is 97400961). The
Webcast will be archived and available through March 5, 2013 at
http://www.tivo.com/ir or by calling (404) 537-3406; and entering the
conference ID number 97400961. 
About TiVo Inc. 
Founded in 1997, TiVo Inc. (NASDAQ: TIVO) developed the first
commercially available digital video recorder (DVR).  TiVo offers the
TiVo service and TiVo DVRs directly to consumers online at
www.tivo.com and through third-party retailers.  TiVo also
distributes its technology and services through solutions tailored
for cable, satellite, and broadcasting companies. Since its founding,
TiVo has evolved into the ultimate single solution media center by
combining its patented DVR technologies and universal cable box
capabilities with the ability to aggregate, search, and deliver
millions of pieces of broadband, cable, and broadcast content
directly to the television. An economical, one-stop-shop for in-home
entertainment, TiVo's intuitive functionality and ease of use puts
viewers in control by enabling them to effortlessly navigate the best
digital entertainment content available through one box, with one
remote, and one user interface, delivering the most dynamic user
experience on the market today.  TiVo also continues to weave itself
into the fabric of the media industry by providing interactive
advertising solutions and audience research and measurement ratings
services to the television industry.  
TiVo and the TiVo Logo are trademarks or registered trademarks of
TiVo Inc. or its subsidiaries worldwide. Copyright 2013 TiVo Inc. All
rights reserved. All other trademarks are the property of their
respective owners. 
This release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements relate to, among other things, TiVo's future business and
growth strategies including future distribution agreements as well as
revenue and subscription growth from MSO customers (both domestically
and internationally), future growth in TiVo's overall subscription
base, TiVo's upcoming launch of TiVo Mini device in retail and launch
of the MLB.com on TiVo's retail platform, future launch of TV
Everywhere web portal powered by TiVo, TiVo's future marketing plans
and spend, the future availability of TiVo offering with Com Hem,
Cable ONE, Midcontinent, Mediacom, and GCI next year, future growth
in TiVo's audience research and measurement business, future
decreases in TiVo R&D spending, and the future strength and value of
TiVo's intellectual property portfolio. Forward-looking statements
generally can be identified by the use of forward-looking terminology
such as, "believe," "expect," "may," "will," "intend," "estimate,"
"continue," or similar expressions or the negative of those terms or
expressions. Such statements involve risks and uncertainties, which
could cause actual results to vary materially from those expressed in
or indicated by the forward-looking statements. Fact
ors that may
cause actual results to differ materially include delays in
development, competitive service offerings and lack of market
acceptance, as well as the other potential factors described under
"Risk Factors" in the Company's public reports filed with the
Securities and Exchange, including the Company's Annual Report on
Form 10-K for the fiscal year ended January 31, 2012, our Quarterly
Reports on Form 10-Q for the periods ended April 30, 2012, July 31,
2012, and October 31, 2012, and Current Reports on Form 8-K. The
Company cautions you not to place undue reliance on forward-looking
statements, which reflect an analysis only and speak only as of the
date hereof. TiVo disclaims any obligation to update these
forward-looking statements. 


 
                                                                            
                                  TIVO INC.                                 
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS              
             (In thousands, except per share and share amounts)             
                                 (unaudited)                                
                                                                            
                                                                            
                          Three Months Ended         Twelve Months Ended    
                              January 31                  January 31        
                     -------------------------------------------------------
                          2013          2012          2013          2012    
                     -------------------------------------------------------
Revenues                                                                    
    Service revenues $     35,574  $     31,578  $    133,725  $    131,341 
    Technology                                                              
     revenues              30,153        18,465       101,592        58,945 
    Hardware                                                                
     revenues              23,129        16,428        68,591        47,893 
                     ------------  ------------  ------------  ------------ 
Net revenues               88,856        66,471       303,908       238,179 
Cost of revenues                                                            
    Cost of service                                                         
     revenues              11,619         8,711        40,107        35,865 
    Cost of                                                                 
     technology                                                             
     revenues               7,318         4,502        23,175        23,056 
    Cost of hardware                                                        
     revenues              21,847        20,368        78,183        59,439 
                     ------------  ------------  ------------  ------------ 
  Total cost of                                                             
   revenues                40,784        33,581       141,465       118,360 
                     ------------  ------------  ------------  ------------ 
      Gross margin         48,072        32,890       162,443       119,819 
                     ------------  ------------  ------------  ------------ 
    Research and                                                            
     development           26,614        29,825       115,103       110,367 
    Sales and                                                               
     marketing              8,928         6,393        30,353        26,388 
    Sales and                                                               
     marketing,                                                             
     subscription                                                           
     acquisition                                                            
     costs                  3,471         1,320         8,660         7,392 
    General and                                                             
     administrative        23,708        38,192        87,075        96,502 
    Litigation                                                              
     Proceeds                   -       (54,444)      (78,441)     (230,160)
                     ------------  ------------  ------------  ------------ 
      Total                                                                 
       operating                                                            
       expenses            62,721        21,286       162,750        10,489 
                     ------------  ------------  ------------  ------------ 
      Income (loss)                                                         
       from                                                                 
       operations         (14,649)       11,604          (307)      109,330 
    Interest income           808         1,072         3,951         5,672 
    Interest expense                                                        
     and other                                                              
     income                                                                 
     (expense)             (1,966)       (5,430)       (7,872)      (12,034)
                     ------------  ------------  ------------  ------------ 
      Income (loss)                                                         
       before income                                                        
       taxes              (15,807)        7,246        (4,228)      102,968 
      Benefit from                                                          
       (provision                                                           
       for) income                                                          
       taxes                   31           (61)       (1,036)         (807)
                     ------------  ------------  ------------  ------------ 
    Net income                                                              
     (loss)          $    (15,776) $      7,185  $     (5,264) $    102,161 
                     ============  ============  ============  ============ 
                                                                            
    Net income                                                              
     (loss) per                                                             
     common share                                                           
      Basic          $      (0.13) $       0.06  $      (0.04) $       0.88 
      Diluted        $      (0.13) $       0.06  $      (0.04) $       0.80 
                                                                            
    Income (loss)                                                           
     for purposes of                                                        
     computing net                                                          
     income (loss)                                                          
     per share:                                                             
      Basic               (15,776)        7,185        (5,264)      102,161 
      Diluted             (15,776)        7,185        (5,264)      109,140 
                                                                            
    Weighted average                                                        
     common and                                                             
     common                                                                 
     equivalent                                                             
     shares:                                                                
      Basic           120,199,937   117,747,442   119,411,727   116,592,943 
      Diluted         120,199,937   122,042,180   119,411,727   136,255,424 
                                                                            
                                                                            
                                                                            
                                  TIVO INC.                                 
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
             (In thousands, except per share and share amounts)             
                                 (unaudited)                                
                                                                            
                                                                            
                                                       As of January 31,    
                                                   -------------------------
                                                       2013         2012    
                                                   -------------------------
                       ASSETS                                               
CURRENT ASSETS   
                                                           
  Cash and cash equivalents                        $   157,104  $   169,555 
  Short-term investments                               470,136      449,244 
  Accounts receivable, net of allowance for                                 
   doubtful accounts of $362 and $370, respectively     40,102       24,665 
  Inventories                                           14,500       18,925 
  Deferred cost of technology revenues, current         14,713        4,400 
  Prepaid expenses and other, current                    9,168       12,106 
                                                   -----------  ----------- 
    Total current assets                               705,723      678,895 
LONG-TERM ASSETS                                                            
  Property and equipment, net of accumulated                                
   depreciation of $51,012 and $47,170,                                     
   respectively                                         10,300        9,191 
  Developed technology, and intangible assets, net                          
   of accumulated amortization of $21,323 and                               
   $17,797, respectively                                16,086        4,677 
  Deferred cost of technology revenues, long-term       16,011       23,546 
  Goodwill                                              12,266            - 
  Prepaid expenses and other, long-term                  3,267        3,501 
    Total long-term assets                              57,930       40,915 
                                                   -----------  ----------- 
      Total assets                                 $   763,653  $   719,810 
                                                   ===========  =========== 
        LIABILITIES AND STOCKHOLDERS' EQUITY                                
LIABILITIES                                                                 
  CURRENT LIABILITIES                                                       
  Accounts payable                                 $    24,492  $    32,102 
  Accrued liabilities                                   50,043       45,341 
  Deferred revenue, current                            103,505       74,986 
                                                   -----------  ----------- 
    Total current liabilities                          178,040      152,429 
  LONG-TERM LIABILITIES                                                     
  Deferred revenue, long-term                           71,823       81,336 
  Convertible senior notes                             172,500      172,500 
  Deferred rent and other long-term liabilities            526          518 
                                                   -----------  ----------- 
    Total long-term liabilities                        244,849      254,354 
                                                   -----------  ----------- 
      Total liabilities                                422,889      406,783 
  COMMITMENTS AND CONTINGENCIES                                             
STOCKHOLDERS' EQUITY                                                        
  Preferred stock, par value $0.001: Authorized                             
   shares are 10,000,000; Issued and outstanding                            
   shares - none                                             -            - 
  Common stock, par value $0.001: Authorized shares                         
   are 275,000,000; Issued shares are 129,545,267                           
   and 123,073,486, respectively, and outstanding                           
   shares are 125,622,357 and 121,616,908,                                  
   respectively                                            129          123 
  Treasury stock, at cost - 3,922,910 shares and                            
   1,456,578 shares, respectively                      (37,791)     (13,788)
  Additional paid-in capital                         1,060,532    1,003,696 
  Accumulated deficit                                 (682,328)    (677,064)
  Accumulated other comprehensive income                   222           60 
                                                   -----------  ----------- 
      Total stockholders' equity                       340,764      313,027 
                                                   -----------  ----------- 
      Total liabilities and stockholders' equity   $   763,653  $   719,810 
                                                   ===========  =========== 
                                                                            
                                                                            
                                                                            
                                  TIVO INC.                                 
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS              
                               (In thousands)                      
         
                                 (unaudited)                                
                                                                            
                                                                            
                                                       Fiscal Year Ended    
                                                          January 31,       
                                                   -------------------------
                                                       2013         2012    
                                                   -------------------------
CASH FLOWS FROM OPERATING ACTIVITIES                                        
  Net income (loss)                                $    (5,264) $   102,161 
  Adjustments to reconcile net income (loss) to net                         
   cash provided by (used in) operating activities:                         
    Depreciation and amortization of property and                           
     equipment and intangibles                           9,332        8,805 
    Stock-based compensation expense                    34,455       29,287 
    Amortization of discounts and premiums on                               
     investments                                         4,852        4,068 
    Non-cash loss on overallotment option and                               
     amortization of deferred debt issuance costs          961        2,432 
    Impairment of a long-term cost method                                   
     investment                                              -        3,400 
    Utilization and write-down of trade credits              -          619 
    Allowance for doubtful accounts                        219          476 
  Changes in assets and liabilities:                                        
    Accounts receivable                                (14,861)      (9,130)
    Inventories                                          4,425       (5,697)
    Deferred cost of technology revenues                (2,476)     (11,527)
    Prepaid expenses and other                           4,161       (2,752)
    Accounts payable                                   (10,280)      13,888 
    Accrued liabilities                                  3,832       15,226 
    Deferred revenue                                    17,925       87,673 
    Deferred rent and other long-term liabilities            8          272 
                                                   -----------  ----------- 
      Net cash provided by operating activities    $    47,289  $   239,201 
                                                   -----------  ----------- 
CASH FLOWS FROM INVESTING ACTIVITIES                                        
                                                                            
  Purchases of short-term investments                 (579,633)    (750,161)
  Sales or maturities of long-term and short-term                           
   investments     
                                    553,073      436,730 
  Purchase of long-term investment                        (250)           - 
  Acquisition of business, net of cash and cash                             
   equivalents acquired                                (24,466)           - 
  Acquisition of property and equipment                 (6,451)      (4,918)
  Acquisition of capitalized software and                                   
   intangibles                                             (95)        (408)
                                                   -----------  ----------- 
    Net cash used in investing activities          $   (57,822) $  (318,757)
                                                   -----------  ----------- 
CASH FLOWS FROM FINANCING ACTIVITIES                                        
  Proceeds from issuance of convertible senior                              
   notes, net of issuance costs of $6,391                    -      166,109 
  Proceeds from issuance of common stock related to                         
   exercise of common stock options                     16,268       11,297 
  Proceeds from issuance of common stock related to                         
   employee stock purchase plan                          5,817        5,612 
  Treasury stock - repurchase of stock                 (24,003)      (5,128)
                                                   -----------  ----------- 
    Net cash provided by (used in) financing                                
     activities                                    $    (1,918) $   177,890 
                                                   -----------  ----------- 
NET INCREASE (DECREASE) IN CASH AND CASH                                    
 EQUIVALENTS                                       $   (12,451) $    98,334 
CASH AND CASH EQUIVALENTS:                                                  
  Balance at beginning of period                       169,555       71,221 
                                                   -----------  ----------- 
  Balance at end of period                         $   157,104  $   169,555 
                                                   ===========  =========== 
                                                                            
                                                                            
                                                                            
                                  TIVO INC.                                 
                                 OTHER DATA                                 
                                                                            
                                                                            
                                                                 Guidance   
                      Three Months Ended  Twelve Months Ended Reconciliation
                                                              --------------
                                                                            
                                                               Three Months 
                         January 31,          January 31,         Ending    
                     ----------------------------------------               
                                                                            
                        2013      2012      2013      2012    April 30, 2013
                     ---------------------------------------- --------------
                                   (In thousands)              (In millions)
                                                                            
Net income (loss)    $(15,776) $  7,185  $ (5,264) $ 102,161   $(16) - $(19)
Add back:                                                                   
  Depreciation &                                                            
   amortization         2,710     2,123     9,332      8,804        $3      
  Interest income &                                                         
   expense              1,158       956     3,919      2,958        $1      
  Provision for                                                             
   income tax             (31)       61     1,035        807        $0      
                     --------  --------  --------  ---------  --------------
  EBITDA              (11,939)   10,325     9,022    114,730   $(12) - $(15)
  Stock-based                                                               
   compensation         9,292     7,308    34,455     29,287      $7 - $8   
  Impairment of a                                                           
   long-term cost                                                           
   method investment        -     3,400         -      3,400                
                     --------  --------  --------  ---------  --------------
  Adjusted EBITDA    $ (2,647) $ 21,033  $ 43,477  $ 147,417    $(5) - $(8) 
                     --------  --------  --------  ---------  --------------
Litigation expenses  $ 10,409  $ 26,708  $ 38,055  $  50,503     $11 - $12  
Litigation proceeds                                                         
 (past damage                                                               
 awards)             $      -  $(54,444) $(78,441) $(230,160)        -      
Adjusted EBITDA                                                             
 excluding                                                                  
 litigation expense                                                         
 and litigation                                                             
 proceeds (past                                                             
 damage awards)      $  7,762  $ (6,703) $  3,091  $ (32,240)     $4 - $7   
                     ========  ========  ========  =========  ==============
                                                                            
                                                                            
*
T
 
EBITDA and Adjusted EBITDA Results. TiVo's "EBITDA" means income
before interest income and expense, provision for income taxes and
depreciation and amortization. TiVo's "Adjusted EBITDA" is EBITDA
less expense for stock-based compensation. EBITDA and Adjusted EBITDA
are not measures of financial performance under generally accepted
accounting principles, which we refer to as GAAP. We have presented
EBITDA and Adjusted EBITDA solely as supplemental disclosure because
we believe they allow for a more complete analysis of our results of
operations and we believe that EBITDA and Adjusted EBITDA are useful
to investors because EBITDA and Adjusted EBITDA are commonly used to
analyze companies on the basis of operating performance. In addition,
because of the variety of equity awards used by companies, the
varying methodologies for determining stock-based compensation
expense, and the subjective assumptions involved in those
determinations, we believe excluding stock-based compensation
enhances the ability of management and investors evaluate our
operating performance over multiple periods. Management does not use
EBITDA or Adjusted EBITDA as a measure of liquidity because, among
other things, they do not exclude the impact of deferred revenues
associated with the amortization of product lifetime subscriptions.
We do not use stock-based compensation expense in our internal
measures. A limitation associated with these non-GAAP measures is
that they do not include any stock-based compensation expense related
to hiring, retaining, and incentivizing the Company's workforce.
EBITDA and Adjusted EBITDA are not intended to represent, and should
not be considered more meaningful than, or as an alternative to,
measures of operating performance as determined in accordance with
GAAP. 

  
TIVO INC.                                   
OTHER DATA                                  
Three Months Ended    Twelve Months Ended 
Subscriptions                         January 31,           January 31,     
---------------------------------------------------------------------------- 
(Subscriptions in thousands)     2013       2012       2013       2012   
----------------------------------------------------------------------------
TiVo-Owned Subscription Gross                                               
 Additions:                             35         32        117        114 
Subscription Net                                                            
 Additions/(Losses):                                                        
TiVo-Owned                             (13)       (26)       (80)      (157)
MSOs                                   222        260        950        387  
---------  ---------  ---------  --------- 
  Total Subscription Net                                                     
Additions/(Losses)                  209        234        870        230 
Cumulative Subscriptions:                                                   
TiVo-Owned                           1,029      1,109      1,029      1,109 
MSOs                                 2,120      1,170      2,120      1,170  
---------  ---------  ---------  --------- 
  Total Cumulative Subscriptions     3,149      2,279      3,149      2,279 
Fully Amortized Active Lifetime                                             
 Subscriptions                         194        253        194        253 
% of TiVo-Owned Cumulative                                                  
 Subscriptions paying recurring                                             
 fees                                   53%        55%        53%        55% 


 
Subscriptions. Management reviews this metric, and believes it may be
useful to investors, in order to evaluate our relative position in
the marketplace and to forecast future potential service revenues.
The TiVo-Owned lines refer to subscriptions sold directly or
indirectly by TiVo to consumers who have TiVo-enabled DVRs and for
which TiVo incurs acquisition costs. The MSOs lines refer to
subscriptions sold to consumers by multiple system operators and
broadcasters such as DIRECTV, Cablevision Mexico, Seven/Hybrid TV
(Australia), Television New Zealand (TVNZ) (New Zealand), Virgin
Media (United Kingdom), RCN, and Suddenlink and for which TiVo
expects to incur little or no acquisition costs. Additionally, we
provide a breakdown of the percent of TiVo-Owned subscriptions for
which consumers pay recurring fees, including on a monthly and a
prepaid one, two, or three year basis, as opposed to a one-time
prepaid product lifetime fee. 
 
We define a "subscription" as a contract referencing a TiVo-enabled
DVR for which (i) a consumer has committed to pay for the TiVo
service and (ii) service is not canceled. We count product lifetime
subscriptions in our subscription base until both of the following
conditions are met: (i) the period we use to recognize product
lifetime subscription revenues ends; and (ii) the related DVR has not
made contact to the TiVo service within the prior six month period.
Product lifetime subscriptions past this period which have not called
into the TiVo service for six months are not counted in this total.
We amortize all product lifetime subscriptions over a 60 month
period. We are not aware of any uniform standards for defining
subscriptions and caution that our presentation may not be consistent
with that of other companies. Additionally, the subscription fees
that our MSOs pay us are typically based upon a specific contractual
definition of a subscriber or subscription which may not be
consistent with how we define a subscription for our reporting
purposes nor be representative of how such subscription fees are
calculated and paid to us by our MSOs. Our MSOs subscription data is
based in part on reporting from our third party MSO partners. 

  
TIVO INC.                                   
OTHER DATA - KEY BUSINESS METRICS                       
Three Months Ended     Twelve Months Ended    
January 31,             January 31,        
-----------------------------------------------
TiVo-Owned Churn Rate            2013        2012        2013        2012   
---------------------------------------------------------------------------- 
(In thousands, except churn rate per month)   
Average TiVo-Owned                                                          
 subscriptions                   1,035       1,122       1,062       1,174  
TiVo-Owned subscription                                                     
 cancellations                     (48)        (58)       (197)       (271)  
---------   ---------   ---------   ---------  
  TiVo-Owned Churn Rate per                                                  
month                          (1.5)%      (1.7)%      (1.6)%      (1.9)% 
---------   ---------   ---------   ---------   


 
TiVo-Owned Churn Rate per Month. Management reviews this metric, and
believes it may be useful to investors, in order to evaluate our
ability to retain existing TiVo-Owned subscriptions (including both
monthly and product lifetime subscriptions) by providing services
that are competitive in the market. Management believes factors such
as service enhancements, service commitments, higher customer
satisfaction, and improved customer support may improve this metric.
Conversely, management believes factors such as increased
competition, lack of competitive service features such as high
definition television recording capabilities in our older model DVRs
or access to certain digital television channels or MSO
Video-on-Demand services, as well as, increased price sensitivity and
installation and CableCARD(TM) technology limitations may cause our
TiVo-Owned Churn Rate per month to increase. 
 
We define the TiVo-Owned Churn Rate per month as the total TiVo-Owned
subscription cancellations in the period divided by the Average
TiVo-Owned subscriptions for the period (including both monthly and
product lifetime subscriptions), which then is divided by the number
of months in the period. We calculate Average TiVo-Owned
subscriptions for the period by adding the average TiVo-Owned
subscriptions for each month and dividing by the number of months in
the period. We calculate the average TiVo-Owned subscriptions for
each month by adding the beginning and ending subscriptions for the
month and dividing by two. We are not aware of any uniform standards
for calculating churn and caution that our presentation may not be
consistent with that of other companies.

  
Three Months Ended     Twelve Months Ended   
January 31,             January 31,       
------------------------------------------
----- 
2013        2012        2013        2012    
-----------------------------------------------
Subscription Acquisition                                                    
 Costs                                  (In thousands, except SAC)          
-----------------------------                                               
Sales and marketing,                                                        
 subscription acquisition                                                   
 costs                       $    3,471  $    1,320  $    8,660  $    7,392 
Hardware revenues               (23,129)    (16,428)    (68,591)    (47,893)
Less: MSOs'-related hardware                                                
 revenues                        16,834      11,641      45,849      31,483 
Cost of hardware revenues        21,847      20,368      78,183      59,439 
Less: MSOs'-related cost of                                                 
 hardware revenues              (11,036)     (9,412)    (38,435)    (23,577) 
----------  ----------  ----------  ---------- 
  Total Acquisition Costs         7,987       7,489      25,666      26,844  
==========  ==========  ==========  ========== 
  TiVo-Owned Subscription                                                    
Gross Additions                   35          32         117         114 
  Subscription Acquisition                                                   
Costs (SAC)               $      228  $      234  $      219  $      235  
==========  ==========  ==========  ==========  


 
Subscription Acquisition Cost or SAC. Management reviews this metric,
and believes it may be useful to investors, in order to evaluate
trends in the efficiency of our marketing programs and subscription
acquisition strategies. We define SAC as our total TiVo-Owned
acquisition costs for a given period divided by TiVo-Owned
subscription gross additions for the same period. We define total
acquisition costs as sales and marketing, subscription acquisition
costs less net TiVo-Owned related hardware revenues (defined as
TiVo-Owned related gross hardware revenues less rebates, revenue
share and market development funds paid to retailers) plus TiVo-Owned
related cost of hardware revenues. The sales and marketing,
subscription acquisition costs line item includes advertising
expenses and promotion-related expenses directly related to
subscription acquisition activities, but does not include expenses
related to advertising sales. We do not include third parties'
subscription gross additions, such as MSOs' gross additions with TiVo
subscriptions, in our calculation of SAC because we typically incur
limited or no acquisition costs for these new subscriptions, and so
we also do not include MSOs' sales and marketing, subscription
acquisition costs, hardware revenues, or cost of hardware revenues in
our calculation of TiVo-Owned SAC. We are not aware of any uniform
standards for calculating total acquisition costs or SAC and caution
that our presentation may not be consistent with that of other
companies.

  
Three Months Ended     Twelve Months Ended   
January 31,             January 31,       
-----------------------------------------------
TiVo-Owned Average Revenue                                                  
 per Subscription                2013        2012        2013        2012   
---------------------------------------------------------------------------- 
(In thousands, except ARPU)          
Total Service revenues       $   35,574  $   31,578  $  133,725  $  131,341 
Less: MSOs'-related service                                                 
 revenues                        (8,191)     (4,472)    (24,985)    (16,589) 
----------  ----------  ----------  ---------- 
TiVo-Owned-related service                                                  
 revenues                        27,383      27,106     108,740     114,752 
Average TiVo-Owned revenues                                                 
 per month                        9,128       9,035       9,062       9,563 
Average TiVo-Owned per month                                                
 subscriptions                    1,035       1,122       1,062       1,174  
----------  ----------  ----------  ---------- 
TiVo-Owned ARPU per month    $     8.82  $     8.05  $     8.53  $     8.15  
==========  ==========  ==========  ==========  
Three Months Ended      Twelve Months Ended  
January 31,             January 31,       
-----------------------------------------------
MSOs' Average Revenue per                                                   
Subscription                     2013        2012        2013        2012   
---------------------------------------------------------------------------- 
(In thousands, except ARPU)         
Total Service revenues       $   35,574  $   31,578  $  133,725  $  131,341 
Less: TiVo-Owned-related                                                    
 service revenues               (27,383)    (27,106)   (108,740)   (114,752) 
----------  ----------  ----------  ---------- 
MSOs'-related service                                                       
 revenues                         8,191       4,472      24,985      16,589 
Average MSOs' revenues per                                                  
 month                            2,730       1,491       2,082       1,382 
Average MSOs' per month                                                     
 subscriptions                    2,011       1,049       1,651         849  
----------  ----------  ----------  ---------- 
MSOs' ARPU per month         $     1.36  $     1.42  $     1.26  $     1.63  
==========  ==========  ==========  ==========  


 
Average Revenue Per Subscription or ARPU. Management reviews this
metric, and believes it may be useful to investors, in order to
evaluate the potential of our subscription base to generate revenues
from a variety of sources, including service fees, advertising, and
audience research measurement. You should not use ARPU as a
substitute for measures of financial performance calculated in
accordance with GAAP. Management believes it is useful to consider
this metric excluding the costs associated with rebates, revenue
share, and other payments to channel because of the discretionary and
varying nature of these expenses and because management believes
these expenses, which are included in hardware revenues, net, are
more appropriately monitored as part of SAC. We are not aware of any
uniform standards for calculating ARPU and caution that our
presentation may not be consistent with that of other companies.
Furthermore, ARPU for our MSOs may not be directly comparable to the
service fees we may receive from these partners on a per subscription
basis as the fees that our MSOs pay us may be based upon a specific
contractual definition of a subscriber or subscription which may not
be consistent with how we define a subscription for our reporting
purposes or be representative of how such subscription fees are
calculated and paid to us by our MSOs. For example, an agreement that
includes contractual minimums may result in a higher than expected
MSOs ARPU if such fixed minimum fee is spread over a small number of
subscriptions. 
 
We calculate ARPU per month for TiVo-Owned subscriptions by
subtracting MSOs'-related service revenues (which includes MSOs'
subscription service revenues and MSOs'-related advertising revenues)
from our total reported net service revenues and dividing the result
by the number of months in the period. We then divide by Average
TiVo-Owned subscriptions for the period, calculated as described
above for churn rate. The above table shows this calculation. 
 
We calculate ARPU per month for MSOs' subscriptions by first
subtracting
 TiVo-Owned-related service revenues (which includes
TiVo-Owned subscription service revenues and TiVo-Owned related
advertising revenues) from our total reported service revenues. Then
we divide average revenues per month for MSOs'-related service
revenues by the average MSOs' subscriptions for the period. The above
table shows this calculation.
 
 
 
Contacts:
Investor Relations
Derrick Nueman
408-519-9677
dnueman@tivo.com
 
Media Relations
Mike Boccio
Sloane & Company
212-446-1867
mboccio@sloanepr.com 


 
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