TiVo 2011 Annual Report Download - page 33

Table of Contents
In the future, our revenues and operating results may fluctuate significantly, which may adversely affect the market price of our common stock.
We expect our revenues and operating results to fluctuate significantly due to a number of factors, many of which are outside of our control. Therefore,
you should not rely on period-to-period comparisons of results of operations as an indication of our future performance. It is possible that in some periods our
operating results may fall below the expectations of market analysts and investors. In such event, the market price of our common stock would likely fall.
Factors that may affect our annual operating results include:
• demand for TiVo-enabled DVRs and the TiVo service;
• the timing and introduction of new services and features on the TiVo service;
• seasonality and other consumer and advertising trends;
• entering into new or terminating existing strategic partnerships;
• timing of the roll-out of the TiVo service and delivery of customized set-top boxes to our strategic partners;
• changes in our pricing policies, the pricing policies of our competitors and general pricing trends in the consumer electronics market;
• timing of revenue recognition under our agreements;
• loss of subscriptions to the TiVo service;
• recruiting and retention of key personnel; and
• general economic conditions.
Because our expenses precede associated revenues, unanticipated shortfalls in revenues could adversely affect our results of operations for any given
period and cause the market price of our common stock to fall.
Seasonal trends may cause our quarterly operating results to fluctuate and our inability to forecast these trends may adversely affect the
market price of our common stock.
Consumer electronic product sales have traditionally been much higher during the holiday shopping season than during other times of the year. Although
predicting consumer demand for our products is very difficult, we have experienced that sales of DVRs and new subscriptions to the TiVo service have been
disproportionately high during the holiday shopping season when compared to other times of the year. If we are unable to accurately forecast and respond to
consumer demand for our products, our reputation and brand will suffer and the market price of our common stock would likely fall.
We expect that a portion of our future revenues will come from targeted commercials and other forms of interactive television advertising enabled by the
TiVo service. Expenditures by advertisers tend to be seasonal and cyclical, reflecting overall economic conditions as well as budgeting and buying patterns. A
decline in the economic prospects of advertisers or the economy in general could alter current or prospective advertisers' spending priorities or increase the
time it takes to close a sale with our advertisers, which could cause our revenues from advertisements to decline significantly in any given period.
If we are unable to raise additional capital through the issuance of equity, debt or other financing activities on acceptable terms, our ability to
effectively manage growth and build a strong brand could be harmed. We may incur debt to which covenants attach which could be violated if we do
not meet our expectations.
We expect that our existing capital resources will be sufficient to meet our cash requirements through the next twelve months and beyond. However, as
we continue to grow our business, we may need to raise additional capital, which may not be available on acceptable terms or at all. We may also incur debt
which will subject us to restrictive covenants which if violated by us would cause us to incur penalties and increased expenses which could in turn harm our
business. If we cannot raise necessary additional capital on acceptable terms, we may not be able to develop or enhance our products and services, take
advantage of future opportunities or respond to competitive pressures or unanticipated requirements.
If additional capital is raised through the issuance of equity securities, the percentage ownership of our existing stockholders will decline, stockholders
may experience dilution in net book value per share, or these
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