TiVo 2009 Annual Report Download - page 19

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Table of Contents
Other Information
TiVo was incorporated in August 1997 as a Delaware corporation and is located in Alviso, California. In August of 2000, we formed a wholly owned
subsidiary, TiVo (U.K.) Ltd., in the United Kingdom. In October of 2001, we formed a subsidiary, TiVo International, Inc., a Delaware corporation. On
January 12, 2004, we acquired Strangeberry, Inc., a small Palo Alto based technology company specializing in using home network and broadband
technologies to create new entertainment experiences on television. On July 16, 2004, TiVo Intl. II, Inc., a wholly owned subsidiary of TiVo Inc., was
incorporated in the Cayman Islands. On March 22, 2005, TiVo Brands LLC, a wholly owned subsidiary of TiVo Inc., was incorporated in the State of
Delaware.
We maintain an Internet website at the following address: www.tivo.com. The information on our website is not incorporated by reference in this
annual report on Form 10-K or in any other filings we make with the Securities and Exchange Commission ("the SEC").
We make available on or through our website certain reports and amendments to those reports that we file with or furnish to the SEC in accordance
with the Securities Exchange Act of 1934; as amended. These include our annual reports on Form 10-K, our quarterly reports on Form 10-Q, and our current
reports on Form 8-K. We make this information available on or through our website free of charge as soon as reasonably practicable after we electronically
file the information with, or furnish it to, the SEC.
Other information required by this Item is incorporated by reference from our Proxy Statement under the heading "Independent Auditor Fees and
Services."
ITEM 1A. RISK FACTORS
We have incurred significant net losses and may never achieve sustained profitability.
During the fiscal years ended January 31, 2010, 2009, and 2008, our net income (losses) were $(23.9) million, $103.6 million, and $(31.6) million,
respectively. During the fiscal year ended January 31, 2010, our cash provided by our operations was $8.4 million. As of January 31, 2010, we had an
accumulated deficit of $(696.1) million. The size of future net losses will depend in part on our subscription revenues and on our expenses. We will need to
generate significant additional revenues to achieve sustained profitability.
We face intense competition from a number of sources, which may impair our revenues, increase our subscription acquisition costs, and hinder
our ability to generate new subscriptions.
The DVR and advanced television solutions market is rapidly evolving, and we face significant competition. Moreover, the market for in-home
entertainment is intensely competitive and subject to rapid technological change. As a result of this intense competition, we could incur increased subscription
acquisition costs that could adversely affect our ability to reach or sustain profitability in the future. If new technologies render the DVR market obsolete, we
may be unable to generate sufficient revenue to cover our expenses and obligations.
We believe that the principal competitive factors in the DVR and advanced television solutions market are brand recognition and awareness,
functionality, ease of use, availability, and pricing. We currently see two primary categories of DVR competitors and advanced television solutions
competitors: DVRs and advanced television solutions (e.g. VOD based services on standard set-top boxes which stream content remotely) offered by
telecommunications, cable and satellite operators and DVRs offered by consumer electronics and software companies. For more information on our
competitors, see our discussion on competition in Item 1. "Business."
Licensing Competitors. Our revenues depend both upon our ability to successfully negotiate agreements with our consumer electronics and service
provider customers and, in turn, upon our customers' successful commercialization of their underlying products. We face competition from companies such as
Microsoft, Gemstar, OpenTV, NDS, DIRECTV, EchoStar, Pace, Digeo, Motorola, Cisco, Gotuit, and 2Wire, which have created competing digital video
recording technologies. Such companies may offer more economically attractive agreements to service providers and manufacturers of DVRs.
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