TiVo 2009 Annual Report Download - page 65

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Table of Contents
Our primary sources of liquidity are cash flows provided by operations, investing, and financing activities. Although we currently anticipate these
sources of liquidity, together with cash and cash equivalents and short-term investments will be sufficient to meet our cash needs through the next twelve
months and beyond, we may require or choose to obtain additional financing. Our ability to obtain financing will depend, among other things, on our
development efforts, business plans, operating performance, and the condition of the capital markets at the time we seek financing. We cannot assure you that
additional financing will be available to us on favorable terms when required, or at all. If we raise 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. If we need to raise additional funds in the future and are unable to do so or obtain additional financing on acceptable terms in the future, it
is possible we would have to limit certain planned activities including sales and marketing and research and development activities. Please refer to Part I,
Item 1A, "Risk Factors" for further discussion.
Statement of Cash Flows Discussion
The following table summarizes our cash flow activities:
Twelve Months Ended January 31,
2010 2009 2008
Net cash provided by (used in) operating activities $ 8,408 $ 105,705 $ (32,090)
Net cash provided by (used in) investing activities $ (139,214) $ (34,544) $ 11,595
Net cash provided by financing activities $ 39,360 $ 12,364 $ 10,228
Net Cash Provided by (Used in) Operating Activities
During the fiscal year ended January 31, 2010 our net cash provided by operating activities was $8.4 million as compared to $105.7 million during the
same prior year period. This change in operating cash flow was largely attributed to receipt of proceeds from the EchoStar litigation that we received in the
fiscal year ended January 31, 2009. The fiscal year ended January 31, 2010 had no such similar transaction.
The increase in net cash provided by operating activities of $137.8 million from fiscal year 2008 to 2009 was largely attributable to TiVo's net income
in fiscal year 2009 of $103.6 million compared to a loss of $(31.6) million in the prior fiscal year. In October 2008 TiVo received EchoStar litigation proceeds
and related interest of $104.6 million, less tax expense of $1.3 million and further improvements in operating cash flows of $31.9 million.
Net Cash Provided by (Used in) Investing Activities
The net cash used in investing activities for the fiscal year ended January 31, 2010 was approximately $139.2 million compared to $34.5 million for the
same prior year period. The net cash used in investing activities for the fiscal year ended January 31, 2010, was largely related to TiVo's cash management
process, and the purchase and sales of short-term investments resulting in a net expenditure of cash and cash equivalents of $128.5 million (which resulted in
a corresponding increase in short-term investments of $128.5 million). Additionally, during the fiscal year ended January 31, 2010, we acquired property and
equipment of $5.3 million which is used to support our business, and intangible assets of $2.0 million to enhance our patent portfolio. Finally, we paid $3.4
million for the purchase of a long-term investment. This investment is being accounted for under the cost method of accounting.
The net cash used by investing activities for fiscal year ended January 31, 2009 was approximately $34.5 million compared to net cash provided by
investing activities of $11.6 million in fiscal year 2008. The net cash used in investing activities for the fiscal year ended January 31, 2009, was largely related
TiVo's cash management process, and the purchase of short-term investments resulting in a net expenditure of cash and cash equivalents of $29.7 million
(which resulted in a corresponding increase in short-term investments of $29.7 million). Additionally, in the fiscal year we acquired property and equipment
of $4.5 million which is used to support our business growth.
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