TiVo 2007 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 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
Restricted Stock Grants
Fiscal Year Ended January 31,
2008 2007 2006
(In thousands)
Cost of service revenues $ 49 $ — $ —
Cost of technology revenues 134 — —
Research and development 642 427 (85)
Sales and marketing 340 309 55
General and administrative 1,410 957 415
Stock-based compensation expense before income taxes $ 2,575 $ 1,693 $ 385
Income tax benefit — — —
Total stock-based compensation $ 2,575 $ 1,693 $ 385
No income tax benefit was realized from stock option exercises during the twelve months ended January 31, 2008, 2007, and 2006, respectively. In
accordance with SFAS 123R, the Company presents excess tax benefits from the exercise of stock options, if any, as financing cash flows rather than
operating cash flows.
As of January 31, 2008, $43.4 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-
average period of 2.55 years. As of January 31, 2008, $4.5 million of total unrecognized compensation costs related to unvested restricted stock is expected to
be recognized over a weighted-average period of 1.49 years.
On November 10, 2005, the FASB issued FASB Staff Position No. FAS 123R-3, Transition Election Related to Accounting for Tax Effects of Share-
Based Payment Awards. The Company has elected to adopt the alternative transition method provided in the FASB Staff Position for calculating the effects of
share-based compensation pursuant to SFAS 123R. The alternative transition method includes a simplified method to establish the beginning balance of the
additional paid in capital pool (APIC pool) related to the tax effects of employee share-based compensation, which is available to absorb tax deficiencies
recognized subsequent to the adoption of SFAS 123R.
Proforma information required under SFAS No. 123 and SFAS 148 for periods prior to fiscal year 2007 as if the Company had applied the fair value
recognition provisions of SFAS No. 123 to options granted under the Company's equity incentive plans, was as follows:
Fiscal Year Ended
January 31, 2006
(In thousands,
except per share
amounts)
Net loss, as reported $ (36,999)
Add back: stock-based compensation expense recognized, net of related tax effects 385
Pro forma effect of stock-based compensation expense determined under the fair value method for all awards, net of related tax effects (10,640)
Net loss, pro forma $ (47,254)
Basic and diluted loss per common share, as reported $ (0.44)
Basic and diluted loss per common share, pro forma $ (0.56)
SFAS No. 123R requires the use of a valuation model to calculate the fair value of stock-based awards. The Company has elected to use the Black-
Scholes option-pricing model, which incorporates various assumptions including volatility, expected life, and interest rate. The expected volatility is based on
a combination of historical volatility of the Company's common stock and implied volatility in market traded
81