TiVo 2013 Annual Report Download - page 35

Table of Contents
We expect our revenues and operating results to fluctuate significantly due to a number of factors, many of which are outside of our control.
Therefore, you should not rely on period-to-period comparisons of results of operations as an indication of our future performance. It is
possible that in some periods our operating results may fall below the expectations of market analysts and investors. In such event, the
market price of our common stock would likely fall.
Factors that may affect our annual operating results include:
•demand for TiVo-enabled DVRs and the TiVo service;
•the timing and introduction of new services and features on the TiVo service;
•seasonality and other consumer and advertising trends;
•entering into new or terminating existing strategic partnerships;
•timing of the roll-out of the TiVo service and delivery of customized set-top boxes to our strategic partners;
•changes in our pricing policies, the pricing policies of our competitors and general pricing trends in the consumer electronics
market;
•timing of revenue recognition under our agreements;
•loss of subscriptions to the TiVo service;
•recruiting and retention of key personnel; and
•general economic conditions.
Because our expenses precede associated revenues, unanticipated shortfalls in revenues could adversely affect our results of operations for
any given period and cause the market price of our common stock to fall.
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Consumer electronic product sales have traditionally been much higher during the holiday shopping season than during other times of the
year. Although predicting consumer demand for our products is very difficult, we have experienced that sales of DVRs and new subscriptions
to the TiVo service have been higher during the holiday shopping season when compared to other times of the year. If we are unable to
accurately forecast and respond to consumer demand for our products, our reputation and brand will suffer and the market price of our
common stock would likely fall.
We expect that a portion of our future revenues will come from targeted commercials and other forms of interactive television advertising
enabled by the TiVo service. Expenditures by advertisers tend to be seasonal and cyclical, reflecting overall economic conditions as well as
budgeting and buying patterns. A decline in the economic prospects of advertisers or the economy in general could alter current or prospective
advertisers' spending priorities or increase the time it takes to close a sale with our advertisers, which could cause our revenues from
advertisements to decline significantly in any given period.
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Sales of a substantial number of shares of our common stock in the public market or the perception that such sales might occur could
adversely affect the market price of our common stock. Several of our stockholders own a substantial number of our shares.
As of January 31, 2014, options to purchase a total of 7,664,290 shares and 4,786,985 unvested restricted stock awards and restricted
stock units were outstanding under our option and equity incentive plans, and there were 6,513,292 shares available for future grants. In
addition, there were potentially 15,462,193 shares to be issued upon conversion of our outstanding convertible notes. We have filed
registration statements with respect to the shares of common stock issuable under our option and equity incentive plans.
Future sales of the shares of the common stock, or the registration for sale of such common stock, or the issuance of common stock to
satisfy our current or future cash payment obligations, to fund litigation expenses, or to acquire technology, property, or other businesses,
could cause immediate dilution and adversely affect the market price of our common stock. The sale or issuance of such stock, as well as the
existence of outstanding
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