TiVo Tops 500,000 Subscriber Milestone in Third Quarter; Achieves 139% Revenue Growth for the Quarter
Thursday November 21, 4:01 pm ET
- Toshiba licenses TiVo technology for next-generation consumer electronics devices; - New DIRECTV product powered by TiVo on retail shelves for holiday season; - Company expects cash flow breakeven in fourth quarter; - Outlook for next year shows doubling of subscriber additions, to over a million subscribers by year end, with positive cash flow for the year
SAN JOSE, Calif., Nov. 21 /PRNewswire-FirstCall/ -- TiVo Inc. (Nasdaq: TIVO - News), the creator of and leader in television services for digital video recording, today announced financial results for its third quarter ended October 31, 2002.
Service and technology revenue for the quarter grew 139% to $12.7 million, compared to $5.3 million for the same period last year. TiVo's net loss for the quarter improved to ($11.5) million, or ($0.23) per share, an approximately 70% improvement over its ($34.5) million, or ($0.81) per share, in the third quarter of last year. Operating cash usage for the quarter, as measured by Adjusted EBITDA, was a record low ($4.6) million, a 63% improvement over last year.
Other highlights of the quarter included an increase in the subscriber base to 510,000, the addition of Toshiba to the company's list of licensing partners, and the addition of Circuit City to the growing list of retailers now offering TiVo products.
"We continue to see strong momentum in the DVR category," said Mike Ramsay, Chairman and CEO of TiVo. "TiVo is capitalizing on this demand through our technology partnerships with leading consumer electronics companies, broad retail footprint, and new product introductions from our partners. This puts us in a strong position for the holiday season and the year ahead."
TiVo Expands Market Leadership with Subscriber Base Topping 500,000
During the period, TiVo added 46,000 net new subscribers, bringing the total subscriber base to approximately 510,000. Compared to the third quarter of last year, TiVo's subscriber base has grown over 80 percent.
"TiVo surpassed the 500,000 subscriber milestone this quarter, a significant achievement for our company, and yet another signal of building momentum for the category," Ramsay said. "With this growth, revenues from our subscriber base are beginning to fuel profitability for our company. Thanks to our focus on cash management, we remain on track to achieve our objective of cash flow breakeven in the fourth quarter."
Toshiba Licenses TiVo Technology for Next-Generation Consumer Electronics
Devices
TiVo announced last week that Toshiba has become the latest technology licensee of the TiVo digital video recorder (DVR) technology (see "Toshiba Licenses TiVo Technology for Use in Next-Generation Consumer Electronics Products" - November 13, 2002). "TiVo is the most widely licensed DVR platform today," commented Mr. Ramsay. "This technology licensing agreement with Toshiba demonstrates our technology leadership and is important to our goal of creating an open standards platform that will spur exciting new products for consumers and mass deployment of DVR technology," commented Mr. Ramsay.
TiVo provides fourth quarter business outlook; Expects cash flow breakeven
in the period.
Based on continued success in its efforts to reduce operating expenses and manage cash, management expects to reach its goal of cash flow breakeven, as measured by Adjusted EBITDA, in the fourth quarter. Detailed line item guidance follows:
Guidance
(in millions, except subscriber numbers)
Quarter ending
January 31, 2003
Service and Technology Revenues $11.4 - $11.8
Rebates, revenue share, and other payments to channel $3.6 - $3.9
Cost of Revenue $6.9 - $7.4
Research and Development $5.7 - $6.0
Sales and Marketing and Sales and Marketing,
Related Parties $7.1 - $7.7
General and Administrative $3.8 - $4.0
Operating Loss $(15.5) - $(17.4)
Adjusted EBITDA Breakeven
Net Activations 120,000 - 130,000
Cumulative Subscribers 630,000 - 640,000
Fiscal Year 2004 Outlook: Management projects sub growth to double,
subscriber base to top 1 million, positive cash flow for the year.
TiVo expects to add 450,000 to 600,000 subscribers in FY 2004, more than double the number it expects to add in the current year. This would result in an installed base of well over 1 million subscribers by the end of FY 2004. Service and technology revenues are expected to be $62 million to $70 million. Total operating loss for the year is expected to be in the range of $27 million to $38 million, and the company expects to generate cash for the year.
Conference Call and Web Cast
TiVo will host a conference call to discuss second quarter financial and operating performance and TiVo's outlook for the second half beginning at 2:00 pm PT (5:00 pm ET), today, November 21, 2002. To listen to the discussion, please visit www.tivo.com and click on the link provided for the webcast conference call or dial 913-981-5508 and use the password 732006. The web cast will be archived and available through November 28, 2002 at www.tivo.com or by calling 719-457-0820 and entering the conference ID number 732006. |
