TiVo 2005 Annual Report Download - page 56

Table of Contents
The increases in net cash used in investing activities for fiscal years 2005 and 2004 were primarily attributable to increased purchases of short-term
investments. Additionally, we increased purchases of property and equipment to support our business. During the fiscal year 2004, we acquired intangible
assets in exchange for the issuance of common stock because of the Strangeberry Inc. acquisition and in exchange for the issuance of common stock for
acquisition of patent rights.
Net Cash Provided by Financing Activities
For the fiscal year ended January 31, 2006, the principal source of cash generated from financing activities related to the issuance of common stock for
stock options exercised and our employee stock purchase plan. These transactions generated $7.0 million and $2.9 million, respectively. We paid down our
line of credit with Silicon Valley Bank by $8.0 million, which consisted of $4.5 million outstanding as of January 31, 2005 and incremental borrowings
during fiscal year 2006 of $3.5 million.
For the fiscal year 2005, the principal source of cash generated from financing activities related to our borrowing under our line of credit with Silicon
Valley Bank and the issuance of common stock under our employee stock purchase plan. These transactions generated $4.5 million and $2.4 million,
respectively, for the year ended January 31, 2005 and 2004. Additionally, $1.7 million was obtained from the issuance of common stock for stock options
exercised and $4.3 million was used as payment for the redemption of all of the remaining outstanding 7% convertible notes.
Financing Agreements
$100 Million Universal Shelf Registration Statement. We have an effective universal shelf registration statement on Form S-3 (No. 333-113719) on
file with the Securities and Exchange Commission under which we may issue up to $100,000,000 of securities, including debt securities, common stock,
preferred stock, and warrants. Depending upon market conditions, we may issue securities under this or future registration statements.
Revolving Line of Credit Facility with Silicon Valley Bank. On June 29, 2004, we renewed our loan and security agreement with Silicon Valley Bank
for an additional two years, whereby Silicon Valley Bank agreed to increase the amount of the revolving line of credit it extends to us from a maximum of $6
million to $15 million. The line of credit now bears interest at the greater of prime or 4.00% per annum, but in an event of default that is continuing, the
interest rate becomes 3.00% above the rate effective immediately before the event of default. At January 31, 2006, we were in compliance with the covenants
and had no amount outstanding under the line of credit. The line of credit terminates and any and all borrowings are due on June 29, 2006. However, we have
the right to terminate earlier without penalty upon written notice and repayment of all amounts borrowed.
Contractual Obligations
As of January 31, 2006, we had contractual obligations to make the following cash payments:
Payments due by Period
Contractual Obligations Total
Less than
1 year 1-3 years 3-5 years
Over
5 years
(In thousands)
Operating leases $ 3,668 $ 3,395 $ 273 $ — $ —
Purchase obligations 2,634 2,634 — — —
Total contractual cash obligations $ 6,302 $ 6,029 $ 273 $ — $ —
Purchase Commitments with Contract Manufacturers and Suppliers. We purchase components from a variety of suppliers and use several contract
manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and
help assure adequate component supply, we enter into agreements with contract manufacturers and suppliers that either allow them to procure inventory based
upon criteria as defined by us or that establish the parameters defining our requirements. In certain instances, these agreements allow us the option to cancel,
reschedule, and adjust our requirements based on our business needs prior to firm orders being placed. The table above displays that portion of our purchase
commitments arising from these agreements that is firm, non-cancelable, and unconditional.
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