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Fiscal Year ended January 31,
2011 2010 2009
Numerator:
Net income (loss) $ (84,512) $ (23,036) $ 104,111
Denominator:
Weighted average shares outstanding, excluding unvested restricted stock 113,490 106,182 100,390
Weighted average effect of dilutive securities:
Stock options and restricted stock — — 2,206
Denominator for diluted net income (loss) per common share 113,490 106,182 102,596
Basic net income (loss) per common share $ (0.74) $ (0.22) $ 1.04
Diluted net income (loss) per common share $ (0.74) $ (0.22) $ 1.01
The weighted average number of shares outstanding used in the computation of basic and diluted net loss in fiscal year 2011 and fiscal year 2010 per
share does not include the effect of the following potentially outstanding common stock. The effects of these potentially outstanding shares were not included
in the calculation of diluted net loss per share because the effect would have been anti-dilutive:
As of January 31,
2011 2010 2009
Unvested restricted stock 4,649,998 4,467,429 870,878
Options to purchase common stock 12,667,784 14,918,906 13,119,600
Potential shares to be issued from ESPP 82,543 46,922 —
Total 17,400,325 19,433,257 13,990,478
18. COMCAST AGREEMENT
On March 15, 2005, the Company entered into a non-exclusive licensing and marketing agreement with Comcast STB Software DVR, LLC (“Comcast
STB”), a wholly-owned subsidiary of Comcast Corporation, and Comcast Corporation, as guarantor of Comcast STB’s obligations under the agreement. The
agreement was subsequently amended several times, most recently on March 27, 2008. The Company agreed to develop a TiVo service software solution for
deployment on Comcast’s DVR platforms. In addition, the Company agreed to develop a TiVo Interactive Advertising Management System for deployment
on Comcast platforms to enable the provision of local and national advertising to Comcast subscribers.
Acceptance of the delivery of the TiVo service software solution by Comcast occurred on June 27, 2007 and the TiVo service has launched in its initial
market. Comcast accepted the TiVo advertising management system on March 31, 2008. Our statements of work with Comcast provided for continued
funding for engineering services for the development of additional releases of the TiVo-branded, TiVo-service enabling software for the Comcast DVR
platforms and to enable such software on other Comcast DVR platforms and such funding terminated on December 31, 2010. Revenue from this additional
engineering work is recognized using the percentage-of-completion method. During the twelve months ended January 31, 2011 and 2010 , the Company
recognized $12.3 million and $16.7 million , respectively in technology revenues and $4.6 million and $10.1 million , respectively in cost of technology
revenues.
19. DEVELOPMENT AGREEMENT AND SERVICES AGREEMENT WITH DIRECTV INC.
On September 3, 2008, the Company extended its current agreement with DIRECTV for the development, marketing, and distribution of a new HD
DIRECTV DVR featuring the TiVo ® service. Under the terms of this non-exclusive arrangement, TiVo is developing a version of the TiVo service for
DIRECTV’s broadband-enabled HD
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