TiVo 2003 Annual Report Download - page 28

Table of Contents
Cash interest expense for the fiscal years ended January 31, 2004, 2003, and 2002 was primarily comprised of $732,000, $2.0 million, and $1.0 million,
respectively, for coupon interest expense on the convertible notes. Cash interest expense – related parties for the fiscal years ended January 31, 2004, 2003,
and 2002 consisted primarily of $669,000, $1.3 million, and $1.6 million, respectively, for coupon interest expense on the convertible notes and interest
expense payable to our consumer electronics manufacturers according to negotiated deferred payment schedules.
Fiscal Year Ended January 31,
2004 2003 2002
(In thousands)
Cash interest expense $ 772 $ 2,000 $ 1,079
Cash interest expense – related parties 671 1,345 1,643
Total cash interest expense 1,443 3,345 2,722
Total non-cash interest expense 8,139 24,210 4,553
Total interest expense 9,582 27,555 7,275
Total other expenses 5 14 99
Total interest expense and other $ 9,587 $ 27,569 $ 7,374
Change from prior fiscal year -65% 279% NM
Provision for income taxes. Income tax expense for the fiscal years ended January 31, 2004 and 2003 was primarily due to franchise taxes paid to
various states and foreign withholding taxes. Income tax expense for the fiscal year 2002 was due to tax withheld by the government of Japan as foreign
source income tax from payments made by Sony Corporation under the terms of our technology licensing agreement with Sony.
Series A convertible preferred stock dividend. Under the terms of the Series A convertible preferred stock, we were previously required to pay
dividends to the Series A convertible preferred stockholders. Pursuant to the terms of the Funds Release Agreement dated April 29, 2002, AOL, the sole
preferred stockholder, waived the preferred dividends and associated rights it was otherwise entitled to effective April 1, 2002. On April 30, 2002, we
repurchased 1.6 million shares of our Series A convertible preferred stock. On September 13, 2002, the remaining 1,111,861 outstanding shares of Series A
convertible preferred stock were converted into an equal number of shares of our common stock. The dividends payable for the fiscal year ended January 31,
2004 were therefore zero compared to $220,000 and $3.0 million for the fiscal years ended January 31, 2003 and 2002.
Accretion to redemption value of convertible preferred stock. As a result of our repurchase on April 30, 2002 of 1.6 million shares of our Series A
convertible preferred stock held by AOL for $48.0 million, the associated issuance costs were accreted during the three months ended April 30, 2002. Prior to
the first quarter of fiscal year 2003, these issuance costs were classified as additional paid-in capital for the Series A redeemable convertible preferred stock.
Liquidity and Capital Resources
We have financed our operations and met our capital expenditure requirements primarily from the proceeds of the sale of equity and debt securities. Our
cash resources are subject, in part, to the amount and timing of cash received from subscriptions, licensing and engineering professional services customers,
and hardware customers. At January 31, 2004, we had $143.2 million of cash and cash equivalents. For the fiscal year ending January 31, 2005 we plan to
significantly increase our investment in subscription acquisition activities with a focus on growing TiVo Service subscriptions. We believe our cash and cash
equivalents and funds generated from operations represent sufficient resources to fund operations, capital expenditures, and working capital needs through the
fiscal year ending January 31, 2005.
Statement of Cash Flows Discussion
Our primary sources of liquidity are cash flow provided by operations, by financing activities, and our revolving line of credit facility with Silicon
Valley Bank. Although we currently anticipate that our available funds
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