TiVo 2011 Annual Report Download - page 34

Table of Contents
equity securities may have rights, preferences or privileges senior to those of the holders of our common stock. In addition, we may be limited in our ability to
raise capital through the issuance of additional equity securities by the number of authorized, but unissued and unreserved shares of our common stock
available for issuance. Any debt financing, if available, may involve covenants limiting, or restricting our operations or future opportunities. For example, we
may seek to leverage our existing and future revenues to raise capital for investing in future subscription growth initiatives. Such financing activities may
involve the issuance of debt or other secured instruments tied to current or future revenues that may involve covenants limiting, or restricting our operations or
future opportunities or may involve other risks to stockholders.
The large number of shares available for future sale could adversely affect the market price for our stock.
Sales of a substantial number of shares of our common stock in the public market or the perception that such sales might occur could adversely affect the
market price of our common stock. Several of our stockholders own a substantial number of our shares.
As of January 31, 2012, options to purchase a total of 11,148,528 shares and 5,546,158 unvested restricted stock awards and restricted stock units were
outstanding under our option and equity incentive plans, and there were 6,602,277 shares available for future grants. We have filed registration statements
with respect to the shares of common stock issuable under our option and equity incentive plans.
Future sales of the shares of the common stock, or the registration for sale of such common stock, or the issuance of common stock to satisfy our current
or future cash payment obligations or to acquire technology, property, or other businesses, could cause immediate dilution and adversely affect the market
price of our common stock. The sale or issuance of such stock, as well as the existence of outstanding options and shares of common stock reserved for
issuance under our option and equity incentive plans, also may adversely affect the terms upon which we are able to obtain additional capital through the sale
of equity securities.
Our business could be adversely impacted in the event of a natural disaster.
Our corporate headquarters is located in Alviso, California which is where the overwhelming majority of our employees work. Our primary servers are
located nearby in San Jose, California. Alviso and San Jose lay near the San Andreas Fault, among other known and unknown faults, a major source of
earthquake activity in California. In the event of an earthquake or similar natural disaster, our ability to continue operations could be adversely affected and
our business could be harmed.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None
ITEM 2. PROPERTIES
Our corporate headquarters, which houses our administrative, sales and marketing, customer service and product development activities, is located in
Alviso, California, under a lease that expires on January 31, 2017. Our corporate headquarters includes two buildings totaling 127,124 square feet of office
space and an additional 37,145 square feet of office space as part of another building under a lease that expires on January 31, 2017. Additionally we have
11,985 square feet of space as part of another building under a lease that expires on March 31, 2012 and an additional 1,000 square feet of space under a lease
that expires on August 31, 2012 for a total of 177,254 square feet of office space. We believe that our corporate facilities will be adequate to meet our office
space needs for the next year as we currently utilize approximately 95% of our total office space. Our current facilities lease obligations are subject to periodic
increases and we believe that our existing facilities are well maintained and in good operating condition. The Company also has operating leases for sales and
administrative office space in New York City, New York and Chicago, Illinois.
ITEM 3. LEGAL PROCEEDINGS
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