TiVo 2003 Annual Report Download - page 22

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Table of Contents
During the three months ended January 31, 2004, we added approximately 130,000 net new TiVo Service subscriptions. This represents growth of
approximately 73% compared to the number of subscriptions added during the three months ended January 31, 2003. Consumer demand for TiVo-enabled
DVR and DVD products was driven by broad availability and strong support in the retail channel, a $50 rebate program that began in September 2003, and
increased consumer awareness of TiVo. We intend to generate continued TiVo Service subscription growth through managing our relationships with leading
retailers like Best Buy, Circuit City, and others. Of the 130,000 net new TiVo Service subscriptions, during the three months ended January 31, 2004,
approximately 55% elected the monthly recurring payment option.
During the three months ended January 31, 2004, we added approximately 200,000 net new subscriptions through DIRECTV. This represents growth of
over 5 times the number of new DIRECTV subscriptions added in the quarter ending January 31, 2003. DIRECTV has increased its focus in driving demand
for DIRECTV with TiVo, including increased marketing investment directed at existing DIRECTV customers.
Cash Flows Used in Operations
Management reviews this metric to aid it in evaluating our operating results. One of management's key objectives for the fiscal year ended January 31,
2004 was to improve cash flows used in operations from the prior fiscal year. This was accomplished by decreasing net loss by approximately 60% as
compared to the prior fiscal year. This resulted in a 77% reduction of net cash used in operating activities. Management expects that net cash used in operating
activities for the fiscal year 2005 will increase as compared to the fiscal year 2004 due to increased spending attributable to our planned increased investment
in subscription acquisition activities.
Fiscal Year Ended January 31,
2004
2003
2002
(In thousands)
Net loss $ (32,018) $ (80,596) $ (157,705)
Net cash used in operating activities (7,703) (33,170) (120,836)
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