TiVo 2011 Annual Report Download - page 43

Table of Contents
As of January 31,
2012 2011 2010 2009 2008
(in thousands)
Consolidated Balance Sheets Data:
Cash and cash equivalents 169,555 71,221 70,891 162,337 78,812
Short-term investments 449,244 138,216 173,691 44,991 20,294
Total assets 719,810 285,818 310,812 266,147 167,049
Long-term portion of deferred revenues 81,336 34,857 28,990 28,557 38,128
Convertible senior notes 172,500 — — — —
Total stockholders' equity 313,027 168,756 197,141 155,007 16,120
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and analysis in conjunction with the consolidated financial statements and the accompanying notes included in
this annual report and the section entitled “Risk Factors” in Item 1A, as well as other cautionary statements and risks described elsewhere in this report
before deciding to purchase, sell or hold our common stock.
Company Overview
We are a leading provider of technology and services for advanced television solutions, which include such products as DVRs, non-DVR set-top boxes
(STBs) and other consumer electronic devices and the services that enable their functionality. Our advanced television solutions provide consumers with an
easy intuitive way to record, watch, and control television and receive videos, pictures, and movies from cable, broadcast, and broadband sources. We offer
features such as Season Pass® ™ recordings, integrated search (including content from both traditional linear television, cable VOD, and broadband sources in
one user interface), WishList® searches, cable VOD, the ability to transfer content amongst our DVRs and non-DVR STBs and to other consumer electronics
devices, access to broadband video content, TiVo Online/Mobile Scheduling and applications on third-party devices such as tablet computers and
smartphones (such as iPads and iPhones).
As of January 31, 2012, there were approximately 2.3 million total subscriptions to the TiVo service through our TiVo-Owned and MSO businesses. In
our TiVo-Owned business, in which we sell our products and subscriptions directly to consumers in the United States, we generate hardware revenues through
the distribution of TiVo DVRs through consumer electronics retailers and through our on-line store at TiVo.com. We generate service revenues through the
sales of TiVo service subscriptions to the consumers who purchase our TiVo DVRs. We also have agreements with Comcast and Cox to allow us in the future
to provide integrated access to each provider's VOD content for TiVo-Owned customers in select regions who also subscribe to Comcast's or Cox's television
service in those regions. Additionally, in our MSO business, we generate service and/or hardware revenues by providing the TiVo service on MSO
provisioned DVRs and non-DVR STBs through agreements with leading satellite and cable television service providers and broadcasters such as Charter,
DIRECTV, Grande Communications, ONO, RCN, Suddenlink, and Virgin Media. We also generate technology revenues through the provision of
engineering professional services in connection with our provision of the TiVo service to our MSO customers. We also generate advertising and audience
research and measurement revenues by providing innovative advertising and audience measurement solutions for the television industry.
Additionally, we have and continue to engage in significant intellectual property litigation with certain television service and technology providers in the
United States to protect our technology from infringement. During the fiscal year ended January 31, 2012, we settled such a lawsuit with DISH for $500
million and with AT&T for $215 million, with the potential for additional amounts based on the possible future growth of AT&T's U-verse business. We
currently have additional lawsuits pending against Verizon and are defending such a lawsuit from Motorola. While we have recorded the portion of these
settlements that related to past infringement as litigation proceeds in the quarter in which the settlements occurred, the amounts related to future use are
recognized by us as technology revenues from the licensing of our technology over the remaining term of the license (Refer to Note 18. "DISH Network
Corporation" and Note 19. "AT&T Inc." of notes to consolidated financial statements included in Part II. Item 8. of this report).
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