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Table of Contents
additional funds through the issuance of equity, equity-linked or debt securities, those securities may have rights, preferences or privileges senior to the rights
of our common stock, and our stockholders may experience dilution. Please refer to Part I, Item 1A, "Risk Factors" for further discussion.
The following table summarizes our cash flow activities:
Fiscal year ended January 31,
2008 2007 2006
(In thousands)
Net cash provided by (used in) operating activities $ (32,090) $ (33,507) $ 3,425
Net cash provided by (used in) investing activities $ 11,595 $ (41,237) $ (10,805)
Net cash provided by financing activities $ 10,228 $ 78,525 $ 5,433
Net Cash Provided by (Used in) Operating Activities
The decrease in net cash used in operating activities of $1.4 million from fiscal year 2007 to 2008 was largely attributable to the decrease in net loss of
$16.3 million, decrease in inventory expenditures of $22.6 million, and increased stock-based compensation expenses of $8.1 million. Additionally, we
recorded $5.9 million for non-cash inventory write-downs. These increases were offset by a decrease in deferred revenues of $16.5 million due to the
amortization of product lifetime subscription revenues, and an increase in payments made to vendors of $33.2 million.
The increase in net cash used in operating activities of $36.9 million from fiscal year 2006 to 2007 was largely attributable to the increase in net loss of
$10.8 million, coupled with an increase in inventory expenditures of $20.2 million, and a decrease in cash provided by deferred revenues of $26.1 million due
to the amortization of product lifetime subscription revenues. These usages were partially offset by an increase in non-cash stock compensation of $14.3
million, and a decrease in payments made to vendors of $6.6 million.
Cash from deferred revenues increased during the fiscal years 2006 because we sold product lifetime subscriptions and received up front license and
engineering services payments. These activities cause us to receive cash payments in advance of providing the services, which we recognize as deferred
revenues. We no longer offer product lifetime subscriptions for general sale and we have extended the period we use to recognize product lifetime
subscription revenues from 48 months to 54 months for lifetime subscriptions acquired on or before October 31, 2007. Additionally, we also increased the
amortization period to 60 months for new product lifetime subscriptions acquired on or after November 1, 2007 which are offered on a limited basis and
primarily related to the TiVo HD DVR. Refer to Critical Accounting Estimates "Recognition Period for Product Lifetime Subscriptions Revenues". We expect
the amount of deferred revenues attributable to the product lifetime subscriptions to decrease in the future.
Net Cash Provided by (Used in) Investing Activities
The net cash provided by investing activities for fiscal year ended January 31, 2008 was approximately $11.6 million compared to net cash used of
$41.2 million in fiscal year 2007. The net cash provided by investing activities was largely related to sales of short-term investments of $50.2 million, which
was partially offset by purchases of short-term investments of $30.8 million and acquisition of property and equipment for $7.4 million to support our
business growth.
The net cash used in investing activities for fiscal year ended January 31, 2007 was approximately $41.2 million compared to $10.8 million in fiscal
year 2006. This increase was largely due to purchases of property and equipment for $7.3 million to support our business growth, $1.1 million used to
purchase technology utilized within our new TiVo Series2 DT box, $12.0 million for acquisition of intellectual property rights, including licenses to third
party patents, and $28.6 million for purchases of short-term investments. This usage was offset by the sale of short-term investments of $7.9 million.
Net Cash Provided by Financing Activities
For the fiscal year ended January 31, 2008, the principal source of cash generated from financing activities related to the issuance of common stock, of
which $7.1 million was related to stock option exercises and $3.4 million related to issuances of stock under our employee stock purchase plan.
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