TiVo 2004 Annual Report Download - page 50

Table of Contents
Index to Financial Statements
We expect to continue to experience volatility in our stock price.
The market price of our common stock is highly volatile. Since our initial public offering in September 1999 through April 1, 2005, our common stock
has closed between $71.50 per share and $2.55 per share, closing at $5.24 on April 1, 2005. The market price of our common stock may be subject to
significant fluctuations in response to, among other things, the factors discussed in this section and the following factors:
• changes in estimates of our financial performance or changes in recommendations by securities analysts;
• our failure to meet, or our ability to exceed, the expectations of securities analysts or investors;
• release of new or enhanced products or introduction of new marketing initiatives by us or our competitors;
• announcements by us or our competitors of the creation, developments under or termination of significant strategic relationships, joint ventures,
significant contracts or acquisitions;
• fluctuations in the market prices generally for technology and media-related stocks;
• fluctuations in general economic conditions;
• fluctuations in interest rates;
• market conditions affecting the television and home entertainment industry and the technology sector;
• fluctuations in operating results; and
• additions or departures of key personnel.
The stock market has from time to time experienced extreme price and volume fluctuations, which have particularly affected the market prices for
emerging companies, and which have often been unrelated to their operating performance. These broad market fluctuations may adversely affect the market
price of our common stock.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This annual report on Form 10-K contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as
amended, and section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to, among other things:
• our future investments in subscription acquisition activities including rebate offers to consumers, advertising expenditures, and other marketing
activities;
• our future earnings including expected future service and technology revenues:
• our financial results, and expectations for profitability in the future;
• possible future increases in our general and administrative expenses including expenditures related to lawsuits involving the Company such as the
Sony and EchoStar patent infringement cases;
• possible future increases in our operating expenses including increases in customer support and retention expenditures;
• future subscription growth of both TiVo-Owned and DIRECTV subscriptions;
• our estimates of the useful life of TiVo-enabled DVRs in connection with the recognition of revenue received from product lifetime
subscriptions;
• consumer rebate redemption rates;
• our intentions to continue to grow the number of TiVo-Owned subscriptions through our relationships with major retailers;
• our expectations related to future increases in advertising and research revenues;
• our expectations related to changes in the cost of our hardware revenues and the reasons for changes in the volume of DVRs sold to retailers;
• our ability to fund operations, capital expenditures, and working capital needs during the next year; and
• our ability to raise additional capital through the financial markets in the future.
Forward-looking statements generally can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "intend,"
"estimate," "continue," "ongoing," "predict," "potential," and "anticipate" or similar expressions or the negative of those terms or expressions. These
statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ
materially from those expressed or implied by such forward-looking statements. Such factors include, among others, the information contained under the
captions "Part I, Item 1. Business," and "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in this
annual report. The reader is cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the
date of this annual report and we undertake no obligation to publicly update or revise any forward-looking statements in this annual report. The reader is
strongly urged to read the information set forth under the captions "Part I, Item 1, Business," and "Part II,
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