TiVo 2011 Annual Report Download - page 59

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Table of Contents
deferred revenues of $87.7 million associated with our settlements with DISH Network and AT&T Inc. On May 2, 2011, we received an initial payment of
$300 million in cash from DISH Network in connection with the settlement and patent license we entered into with EchoStar and DISH and on January 4,
2012, we received $51.0 million in cash in connection with the settlement and patent license we entered into with AT&T on January 3, 2012.
During the fiscal year ended January 31, 2011 our net cash used by operating activities was $58.7 million as compared to net cash provided by operating
activities of $9.6 million during the same prior year period. This change in operating cash flow was largely attributed to our increased net loss of $84.5
million. Additionally, we increased spending on technology projects during the fiscal year ended January 31, 2011. In certain cases, we have deferred these
cost of technology revenues and we will recognize them when related revenues are recognized upon billing our customers, as specified in the customer
agreements. This has resulted in an increase in deferred costs of technology revenues of $15.4 million, as compared to the same prior year period.
Net Cash Used in Investing Activities
The net cash used in investing activities for the fiscal year ended January 31, 2012 was $318.8 million compared to net cash provided by investing
activities of $28.9 million for the same prior year period. The net cash used in investing activities for the year ended January 31, 2012 was largely related to
TiVo’s cash management process, and the purchase and sales of short-term investments resulting in a net decrease in cash and cash equivalents of $313.4
million (resulting in a corresponding increase in short-term investments). Additionally, during the fiscal year ended January 31, 2012, we acquired property
and equipment of $4.9 million which is used to support our business.
The net cash provided by investing activities for the fiscal year ended January 31, 2011 was approximately $28.9 million compared to net cash used in
investing activities of $(140.4) million for the same prior year period. The net cash provided by investing activities for the fiscal year ended January 31, 2011
was largely related to TiVo’s cash management process, and the purchase and sales of short-term investments resulting in a net increase in cash and cash
equivalents of $35.5 million (this, along with amortization of discounts and premiums on our short-term investments resulted in a corresponding decrease in
short-term investments). Additionally, during the fiscal year ended January 31, 2011, we acquired property and equipment of $6.7 million which is used to
support our business.
Net Cash Provided by Financing Activities
For the fiscal year ended January 31, 2012 the principal sources of cash generated from financing activities was related to the issuance of convertible
senior notes which generated $166.1 million ,we intend to use the net proceeds from the sale of the notes to fund intellectual property litigation and research
and development spending and for general corporate purposes, which may include funding sales and marketing expenses, increasing our working capital,
making capital expenditures and potentially for strategic acquisitions. Additionally, we had issuance of common stock upon exercise of stock options which
generated $11.3 million and issuance of common stock related to the employee stock purchase plan of $5.6 million. These amounts were partially offset by
the repurchase of $5.1 million in restricted stock to satisfy employee tax withholdings.
For the fiscal year ended January 31, 2011, the principal sources of cash generated from financing activities was related to the issuance of common stock
upon exercise of stock options which generated $30.5 million combined with issuance of common stock related to our employee stock purchase plan of $4.1
million. These amounts were partially offset by the repurchase of $4.3 million in restricted stock to satisfy employee tax withholdings.
Financing Agreements
Share Repurchases. On August 11, 2011, the Company's board of directors authorized a $100 million discretionary share repurchase program, that
became effective on August 29, 2011. The Company has not yet repurchased any shares under the program.
Universal Shelf Registration Statement. We have an effective universal shelf registration statement on Form S-3 (No. 333-171031) on file with the
SEC under which we may issue an unlimited amount of securities, including debt securities, common stock, preferred stock, and warrants. Depending on
market conditions, we may issue securities under this or future registration statements or in private offerings exempt from registration requirements.
Contractual Obligations
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