TiVo 2007 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2007 TiVo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

Table of Contents
5. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consists of the following:
January 31, 2008 January 31, 2007
(In thousands)
Furniture and fixtures $ 3,599 $ 3,414
Computer and office equipment 16,114 17,465
Lab equipment 2,399 2,100
Leasehold improvements 8,425 7,900
Capitalized internal use software 12,118 11,345
Total property and equipment 42,655 42,224
Less: accumulated depreciation and amortization (31,306) (30,518)
Property and equipment, net $ 11,349 $ 11,706
Depreciation and amortization expense for property and equipment for the fiscal years ended January 31, 2008, 2007 and 2006 was $7.1 million, $5.8
million, and $5.5 million, respectively.
6. PURCHASED TECHNOLOGY, CAPITALIZED SOFTWARE, AND INTANGIBLE ASSETS, NET
Purchased technology, capitalized software, and intangible assets, net consists of the following:
January 31, 2008 January 31, 2007
Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
(In thousands)
Purchased technology $ 1,500 $ (833) $ 667 $ 1,500 $ (333) $ 1,167
Capitalized software 1,951 (1,211) $ 740 1,951 (807) $ 1,144
Intellectual property rights 16,265 (4,150) $ 12,115 16,265 (1,807) $ 14,458
Purchased technology, capitalized software, and intangible assets $ 19,716 $ (6,194) $ 13,522 $ 19,716 $ (2,947) $ 16,769
In September 2006, the Company entered into a cross-licensing agreement with IBM under which each party granted to the other a non-exclusive,
worldwide, royalty-free license to such party's patents that are entitled to a priority date on or before September 28, 2006, including all patents and patent
applications in existence as of that date with limited exceptions. The license granted by IBM to the Company extends to all products other than general
purpose data processing products and data storage devices that are primarily sold separately from other hardware. The license that the Company granted to
IBM extends to all products other than digital media recorders and digital media recorder software. No license was granted, directly or by implication, to
permit the combination of any product with any other item. This license is being amortized over the period of its estimated benefit period of 7 years.
The total expected future annual amortization expense related to purchased technology, capitalized software, and intangible assets is calculated on a
straight-line basis, using the useful lives of the assets, which range from three to five years for purchased technology and capitalized software and five to
seven years for intellectual property rights. Amortization expense for the fiscal years ended January 31, 2008, 2007, and 2006 was $3.2 million, $1.9 million,
and $940,000, respectively. Estimated future annual amortization expense is set forth in the table below:
Fiscal Year Ending
Estimated Annual
Amortization
Expense
(In thousands)
January 31, 2009 3,214
January 31, 2010 2,810
January 31, 2011 2,274
January 31, 2012 2,274
January 31, 2013 1,807
There after 1,143
Total $ 13,522
71