TiVo 2007 Annual Report Download - page 42

Table of Contents
consolidated financial statements and the notes thereto, included elsewhere in this annual report. The results of operations for any quarter are not necessarily
indicative of results that may be expected for any future period. Certain amounts in prior periods have been reclassified to conform to the current year
presentation and adjusted for a change in an accounting policy.
Three Months Ended
Jan 31,
2008 (1)
Oct 31,
2007 (2)
Jul 31,
2007 (3)
Apr 30,
2007
Jan 31,
2007
Oct 31,
2006
Jul 31,
2006
Apr 30,
2006
(unaudited, in thousands except per share and share amounts)
Revenues
Service revenues $ 51,025 $ 52,940 $ 53,376 $ 54,155 $ 53,543 $ 49,000 $ 49,430 $ 46,951
Technology revenues 7,027 5,339 3,084 3,932 3,417 3,527 3,382 8,083
Hardware revenues 16,066 17,240 6,199 2,293 19,890 13,476 6,503 1,719
Net revenues 74,118 75,519 62,659 60,380 76,850 66,003 59,315 56,753
Cost of revenues
Cost of service revenues 12,019 10,738 10,064 10,155 12,445 10,820 9,628 10,435
Cost of technology revenues 5,252 4,912 3,696 3,507 3,476 3,006 3,001 7,366
Cost of hardware revenues 23,885 29,114 28,271 10,648 43,534 31,925 21,607 15,146
Total cost of revenues 41,156 44,764 42,031 24,310 59,455 45,751 34,236 32,947
Gross margin 32,962 30,755 20,628 36,070 17,395 20,252 25,079 23,806
Operating expenses
Research and development 15,416 14,049 15,070 14,245 12,755 12,221 12,891 12,861
Sales and marketing 7,336 5,967 5,381 5,303 6,784 5,450 5,439 4,847
Sales and marketing, subscription acquisition costs 7,195 9,050 9,015 5,790 9,915 5,016 3,053 2,783
General and administrative 10,234 11,106 10,392 11,222 8,852 9,811 11,091 15,059
Loss from operations (7,219) (9,417) (19,230) (490) (20,911) (12,246) (7,395) (11,744)
Interest income 1,066 1,218 1,331 1,416 1,426 1,291 988 1,062
Interest expense and other (183) (45) 209 (83) (8) (133) (29) (3)
Net income (loss) before income taxes (6,336) (8,244) (17,690) 843 (19,493) (11,088) (6,436) (10,685)
Provision for income taxes (22) — — (8) (17) (4) (12) (19)
Net income (loss) $ (6,358) $ (8,244) $ (17,690) $ 835 $ (19,510) $ (11,092) $ (6,448) $ (10,704)
Net income (loss) per common share basic and diluted $ (0.06) $ (0.08) $ (0.18) $ 0.01 $ (0.20) $ (0.12) $ (0.07) $ (0.13)
Weighted average common shares used to calculate basic net income (loss) per
share 98,517,991 97,611,001 97,084,184 96,829,128 96,415,236 91,930,061 85,978,022 85,133,631
Weighted average common shares used to calculate diluted net income (loss)
per share 98,517,991 97,611,001 97,084,184 98,046,685 96,415,236 91,930,061 85,978,022 85,133,631
(1) The fourth quarter of fiscal year ended January 31, 2008 results of operations includes a benefit of $4.1 million in cost of hardware revenues resulting
from the sale of previously impaired inventory and a reduction of service revenues of $2.5 million related to the prospective change as of November 1,
2007 in estimated life of the product lifetime subscriptions from 48 months to 54 months. Additionally, we recognized $1.1 million of DIRECTV
revenues deferred from the prior fiscal year as our obligation to provide services to DIRECTV in connection with those revenues expired on January 31,
2008.
(2) The third quarter of fiscal year ended January 31, 2008 results of operations include a benefit of $696,000 in cost of hardware revenues resulting from
the sale of previously impaired inventory.
(3) Our results of operations for the quarter ended July 31, 2007 included an $11.2 million charge to cost of hardware sales which was recorded as a result
of slower than expected sales of standard definition DVRs and the resulting changes in our sales forecast.
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