Tivo Inc. IPO: Company Expects Losses To Continue
08/02/1999
Federal Filings Newswires
(Copyright (c) 1999, Dow Jones & Company, Inc.)
FFBN SOURCE: SEC S-1
ISSUER: TIVO INC.
SYMBOL: X.TEM
OFFERING: COMMON
AMOUNT: Up to $80 million.
33 ACT FILE #: 333-83515
SEC RECEIVE: 07/22/1999
SHELF FILING: N
POST EFFECTIVE: N
SELLING HOLDER: N
UNDERWRITER(S): Credit Suisse First Boston
Allen & Company Inc.
BancBoston Robertson Stephens
Thomas Weisel Partners LLC
WASHINGTON (FFBN) -- TiVo Inc. said it expects to continue to lose
money for the foreseeable future.
As of June 30, 1999, the company had an accumulated deficit of $21.9
million.
Additionally, the company expects to incur significant operating
expenses over the next several years in connection with the continued
development and expansion of the firm's business.
COMPANY DESCRIPTION
TiVo, based in Sunnyvale, Calif., is a pioneer in the personal
television industry. The firm has created a unique personal television
service that allows viewers to watch what they want when they want.
The TiVo Service creates a richer and more enjoyable television
viewing experience by offering viewers greater control, choice, and
convenience. The TiVo Service is a subscription-based service enabled
by a personal video recorder that the firm has designed and developed.
BUSINESS STRATEGY
TiVo's objective is to establish the TiVo Service as a new platform
for delivering richer television programming, advertising and in-home
commerce.
To achieve this objective, TiVo intends to: establish the TiVo
service as the market leader in personal television; establish and promote
the TiVo brand; leverage partnerships to accelerate market acceptance; offer
an increasing range of programming and features; and encourage the
development of new devices enabling the TiVo service.
RESULTS OF OPERATIONS
Subscription revenues for the six months ended June 30, 1999
increased to $8,000 from zero for the six months ended June 30, 1998. This
increase is attributable to customer subscriptions to the TiVo Service
which began in March 1999. As of June 30, 1999, the company had
approximately 1,000 subscribers.
Research and development expenses for the six months ended June 30,
1999 increased to $3.0 million from $1.8 million for the six months ended
June 30, 1998.
Sales and marketing expenses for the six months ended June 30, 1999
increased to $3.8 million from $356,000 for the six months ended June 30,
1998.
General and administrative expenses for the six months ended June 30,
1999 increased to $3.0 million from $903,000 for the six months ended June
30, 1998.
LIQUIDITY AND CAPITAL RESOURCES
Since inception through June 30, 1999, TiVo has financed operations
and met capital expenditure requirements primarily from proceeds of the
private sale of equity securities totaling approximately $39.9 million.
At June 30, 1999, the company had $12.0 million of cash and cash
equivalents along with $7.6 million of short term investments.
On July 21, 1999, the firm issued Series I preferred stock for a
total of $32.5 million with terms comparable to prior series of preferred
stock.
In December 1997, TiVo established a $750,000 line of credit with a
financial institution. The line expires on Aug. 15, 1999. No amounts were
outstanding at Dec. 31, 1998 and June 30, 1999.
TiVo has commitments under operating leases of $901,000 and
obligations under capital leases of $670,000 as of June 30, 1999. The firm
also has an unused lease line of $1.8 million which expires February 2000.
The company has also entered into various supply and service
agreements and purchase commitments with a number of vendors. As of June 30,
1999, the firm's commitment under these agreements is approximately $7.5
million.
On April 8, 1999, TiVo entered into a secured convertible debenture
purchase agreement with certain stockholders. Under the terms of this
agreement, TiVo received a commitment allowing the firm to borrow up to $3
million at an interest rate of 4.67%. As of June 30, 1999, the company had
no outstanding amounts under this agreement.
-Brian Coyle;202-628-7695
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(END) FEDERAL FILINGS-DOW JONES NEWS 08-02-99
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