TiVo Reports Results for the Second Quarter Ended July 31, 2011
-- Early success from new operator deals returns TiVo to positive MSO/Broadcaster subscription gains -- Service & Technology revenue up 18% year-over-year, exceeding guidance -- Adjusted EBITDA and Net loss both exceed guidance -- Strong early success at Virgin Media highlighted by more than 50,000 subscriber installs in first three months since launch -- Grande Communications deal showcases TiVo's leadership among small and medium sized operators -- Insignia Connected TV with TiVo Design rolled out at Best Buy -- Announced a stock repurchase program of up to $100 million
(firmenpresse) - ALVISO, CA -- (Marketwire) -- 08/24/11 -- TiVo Inc. (NASDAQ: TIVO), a leader in advanced
television services, including digital video recorders (DVRs), for
consumers, content distributors and consumer electronics manufacturers,
today reported financial results for the second quarter ended July 31,
2011.
Tom Rogers, President and CEO of TiVo, said, "This was another milestone
quarter for TiVo, highlighted by our successful execution on key strategic
growth initiatives. On the heels of our historic settlement with DISH
Network, in the second quarter we delivered better than anticipated
revenue, Adjusted EBITDA and net income, exceeding our guidance. Further,
the deals we have signed over the past years as a source of growth are now
delivering a substantial number of subscribers, and we believe this trend
should accelerate with more deployments later this year. Finally, we added
yet another distribution relationship in the U.S., this time with Grande
Communications. This agreement leverages our R&D investment from existing
distribution relationships, highlighting our ability to provide a quick and
cost effective advanced television solution for operators globally."
For the second quarter, service and technology revenues were $49.6 million,
compared to our guidance of $46 million to $48 million and up 18% compared
to $42.1 million for the same period last year and $38.8 million in the
fiscal first quarter 2012. TiVo reported a net loss of ($19.6) million,
compared to guidance of a net loss of ($25) million to ($27) million and a
net loss of ($15.3) million in the year ago quarter. Net loss per share
this quarter on a basic share basis was ($0.17). Additionally, Adjusted
EBITDA was a loss of ($9.2) million, compared to Adjusted EBITDA guidance
of a loss of ($14) million to ($16) million, and to an Adjusted EBITDA loss
of ($6.5) million in the same period a year ago.
TiVo ended the second quarter with approximately $628 million in cash and
short-term investments, up significantly from the prior quarter due to the
receipt of the first DISH Network settlement payment of $300 million.
Rogers continued, "We recently announced that our Board has authorized a
$100 million share repurchase plan. Both TiVo management and our Board
concluded, at the time, that with our shares trading at unusually depressed
levels which reflected little value beyond our cash and NOLs, a $100
million repurchase authorization could be a highly compelling investment
relative to other uses of cash while also not limiting our ability to
consider other strategic opportunities.
"Our mass distribution efforts are now showing tangible results through
subscription growth. We are seeing subscription growth from partners such
as RCN, Suddenlink, and Virgin Media, while Charter, DIRECTV, and ONO are
progressing towards launch, which we believe should provide further
momentum.
"Virgin Media is a perfect example of how we are executing with operators.
As part of its second quarter earnings results, Virgin Media said that it
had approximately 50,000 TiVo subscribers live at the end of July. This is
a very strong indication of consumer demand in what are only the early
stages of this deployment, and we are seeing this demand only accelerate in
the third quarter. We are thrilled that Virgin Media has embraced our
offering in such a meaningful way. A quote from Neil Berkett, Virgin
Media's CEO on the company's recent earnings call said it all: 'I think
TiVo will do to our video business what Docsis 3.0 did to our broadband
business. I think it will significantly change our brand, our perception
and our ongoing delivery... TiVo is the best connected TV certainly in the
U.K. and I would argue in the world. It is produced by connected TV
experts. It's all they do, that's why we've partnered with them. That's
why it's actually launched on time.'
"Further, we are continuing to focus on deepening current distribution
relationships. For example, our relationship with RCN continues to expand
as they are set to be the first to offer subscribers a TiVo Whole-Home
solution based on TiVo's expanded product family that includes our non-DVR
set-top box and 4-tuner DVR set-top box. Our non-DVR set-top box, in
particular, increases our ability to significantly penetrate the subscriber
base of service providers beyond the DVR, providing us with an even larger
opportunity to grow.
"We're also making steady progress with Suddenlink, as we've seen them
accelerating deployments and increasing the TiVo footprint beyond Texas,
most notably in North Carolina, where TiVo for the first time is being
deployed with an Arris video-on-demand system. As for our deal with
Charter, we continue to make progress and we look forward to initiating a
trial later this year.
"In addition, the success we're seeing in our current deployments along
with the fact that we are the only mass distributed advanced television
solution deployed to date, has led to additional operators taking notice.
To that end, we announced earlier today a distribution agreement with
Grande Communications, a broadband communications company based in the
Southwest U.S. with about 150,000 video subscribers. Going forward, TiVo
will be the exclusive provider of DVRs and whole home solutions for Grande.
We expect Grande's initial launch to begin in October. It's worth noting
that the speed with which we are able to launch with Grande is a great
example of how our recent R&D investments enable us to bring on new
customers with limited incremental cost to TiVo and the operator and then
to move with great speed.
"On the retail side of the business, Best Buy launched Insignia Connected
TVs with a TiVo designed user experience. This is the first time TiVo has
been available directly on a television as its primary user interface and
highlights another way TiVo touches the consumer as well as represents
another device in Best Buy stores with the TiVo experience. While we
continue to be cautious with our investments in the retail business, we are
confident that our retail offerings will benefit from having the TiVo
Designed Insignia televisions at Best Buy. More importantly, by leveraging
the R&D elements of our retail business into our operator business, TiVo is
the only vendor that is in the unique position of having an array of
operator products that benefit from more than ten years of direct
interaction with retail subscribers and households. And by being in retail
we continue to believe we are able to control our own destiny, innovate,
and deliver the best product with a well recognized brand. That pedigree
of innovation is one of the things operators find extremely valuable.
"In terms of our intellectual property, and in particular our patent
portfolio, since our inception we have been diligent in our efforts to file
patent applications around the inventions we have created. We currently
have 210 issued patents and 389 pending applications in our worldwide
portfolio of media experience and connectivity intellectual property that
extend to DVRs, set-top boxes, smart phones, tablets, and other forms of
consumer electronics and processes. And much of this intellectual property
extends well into the future. We are very pleased to see that patents and
intellectual property in general are becoming increasingly more valuable,
and we believe that, as a result of our creativity and engineering focus,
we have one of the more significant advanced patent portfolios out there in
these fields."
Rogers concluded, "We are seeing momentum building around many elements of
our business that we believe will drive our future growth. We have
showcased to the pay-TV world that we have a unique advanced television
solution that is being deployed in the marketplace today. We believe our
current agreements with operators are just the tip of the iceberg, as we
see significant potential in future deals driving accelerated subscription
growth. The recent validation of our intellectual property, coupled with
the growing value of patent portfolios in the market and the fact that we
believe we have now become the leader in the expanding market of advanced
television to operators, has put TiVo in a strong position today."
For the third quarter of fiscal 2012, TiVo anticipates service and
technology revenues in the range of $49 million to $51 million. TiVo
anticipates net loss to be in the range of ($27) million to ($29) million,
and an Adjusted EBITDA loss to be in the range of ($17) million to ($19)
million. This guidance includes ongoing licensing revenue from the DISH
Network settlement.
This financial guidance is based on information available to management as
of August 24, 2011. TiVo expressly disclaims any duty to update this
guidance.
Management's guidance includes Adjusted EBITDA, a non-GAAP financial
measure as defined in Regulation G. TiVo has provided a reconciliation of
EBITDA and Adjusted EBITDA to net income (loss) in the attached schedules
solely for the purpose of complying with Regulation G and not as an
indication that EBITDA or Adjusted EBITDA is a substitute measure for net
income (loss).
TiVo will host a conference call and Webcast to discuss the second quarter
financial and operating results and guidance outlook at 2:00 pm PT (5:00 pm
ET), today, August 24, 2011. To listen to the discussion, please visit
and click on the link provided for the Webcast or
dial (877) 618-4505 (conference ID number is 90406852). The Webcast will be
archived and available through August 31, 2011 at or
by calling (706) 645-9291; and entering the conference ID number 90406852.
Founded in 1997, TiVo Inc. (NASDAQ: TIVO) developed the first commercially
available digital video recorder (DVR). TiVo offers the TiVo service and
TiVo DVRs directly to consumers online at and through
third-party retailers. TiVo also distributes its technology and services
through solutions tailored for cable, satellite, and broadcasting
companies. Since its founding, TiVo has evolved into the ultimate single
solution media center by combining its patented DVR technologies and
universal cable box capabilities with the ability to aggregate, search, and
deliver millions of pieces of broadband, cable, and broadcast content
directly to the television. An economical, one-stop-shop for in-home
entertainment, TiVo's intuitive functionality and ease of use puts viewers
in control by enabling them to effortlessly navigate the best digital
entertainment content available through one box, with one remote, and one
user interface, delivering the most dynamic user experience on the market
today. TiVo also continues to weave itself into the fabric of the media
industry by providing interactive advertising solutions and audience
research and measurement ratings services to the television industry.
TiVo and the TiVo Logo are trademarks or registered trademarks of TiVo Inc.
or its subsidiaries worldwide. © 2011 TiVo Inc. All rights reserved. All
other trademarks are the property of their respective owners.
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements relate
to, among other things, TiVo's future business and growth strategies
including future subscription growth with TiVo's MSO/Broadcaster customers
and subscription growth in TiVo's retail business, future repurchases of
TiVo stock by TiVo, the timing of future TiVo product roll-outs and
availability of particular products in the future with customers such as
DIRECTV, ONO, Charter, RCN, and Grande Communications among others, TiVo's
ability to leverage its research and development in the future between
customers and MSO and retail markets and the future strength and value of
TiVo's intellectual property portfolio. Forward-looking statements
generally can be identified by the use of forward-looking terminology such
as, "believe," "expect," "may," "will," "intend," "estimate," "continue,"
or similar expressions or the negative of those terms or expressions. Such
statements involve risks and uncertainties, which could cause actual
results to vary materially from those expressed in or indicated by the
forward-looking statements. Factors that may cause actual results to differ
materially include delays in development, competitive service offerings and
lack of market acceptance, as well as the other potential factors described
under "Risk Factors" in the Company's public reports filed with the
Securities and Exchange Commission, including the Company's Annual Report
on Form 10-K for the fiscal year ended January 31, 2011, our Quarterly
Report on Form 10-Q for the period ended April 30, 2011, and Current
Reports on Form 8-K. The Company cautions you not to place undue reliance
on forward-looking statements, which reflect an analysis only and speak
only as of the date hereof. TiVo disclaims any obligation to update these
forward-looking statements.
TiVo's "EBITDA" means income
before interest income and expense, provision for income taxes and
depreciation and amortization. TiVo's "Adjusted EBITDA" is EBITDA less
expense for stock-based compensation. EBITDA and Adjusted EBITDA are not
measures of financial performance under generally accepted accounting
principles, which we refer to as GAAP. We have presented EBITDA and
Adjusted EBITDA solely as supplemental disclosure because we believe they
allow for a more complete analysis of our results of operations and we
believe that EBITDA and Adjusted EBITDA are useful to investors because
EBITDA and Adjusted EBITDA are commonly used to analyze companies on the
basis of operating performance. In addition, because of the variety of
equity awards used by companies, the varying methodologies for determining
stock-based compensation expense, and the subjective assumptions involved
in those determinations, we believe excluding stock-based compensation
enhances the ability of management and investors evaluate our operating
performance over multiple periods. Management does not use EBITDA or
Adjusted EBITDA as a measure of liquidity because, among other things, they
do not exclude the impact of deferred revenues associated with the
amortization of product lifetime subscriptions. We do not use stock-based
compensation expense in our internal measures. A limitation associated with
these non-GAAP measures is that they do not include any stock-based
compensation expense related to hiring, retaining, and incentivizing the
Company's workforce. EBITDA and Adjusted EBITDA are not intended to
represent, and should not be considered more meaningful than, or as an
alternative to, measures of operating performance as determined in
accordance with GAAP.
Included in the 1,165,000 TiVo-Owned subscriptions are approximately
286,000 lifetime subscriptions that have reached the end of the period TiVo
uses to recognize lifetime subscription revenue. These lifetime
subscriptions no longer generate subscription revenue.
Management reviews this metric, and believes it may
be useful to investors, in order to evaluate our relative position in the
marketplace and to forecast future potential service revenues. The
TiVo-Owned lines refer to subscriptions sold directly or indirectly by TiVo
to consumers who have TiVo-enabled DVRs and for which TiVo incurs
acquisition costs. The MSOs/Broadcasters lines refer to subscriptions sold
to consumers by MSOs/Broadcasters such as DIRECTV, Cablevision Mexico,
Seven/Hybrid TV (Australia), Television New Zealand (TVNZ) (New Zealand),
Virgin Media (United Kingdom), RCN, Suddenlink, and Comcast (under the
prior agreement with Comcast) and for which TiVo expects to incur little or
no acquisition costs. Additionally, we provide a breakdown of the percent
of TiVo-Owned subscriptions for which consumers pay recurring fees,
including on a monthly and a prepaid one, two, or three year basis, as
opposed to a
one-time prepaid product lifetime fee.
We define a "subscription" as a contract referencing a TiVo-enabled DVR for
which (i) a consumer has committed to pay for the TiVo service and (ii)
service is not canceled. We count product lifetime subscriptions in our
subscription base until both of the following conditions are met: (i) the
period we use to recognize product lifetime subscription revenues ends; and
(ii) the related DVR has not made contact to the TiVo service within the
prior six month period. Product lifetime subscriptions past this period
which have not called into the TiVo service for six months are not counted
in this total. We amortize all product lifetime subscriptions over a 60
month period. We are not aware of any uniform standards for defining
subscriptions and caution that our presentation may not be consistent with
that of other companies. Additionally, the subscription fees that our
MSOs/Broadcasters pay us are typically based upon a specific contractual
definition of a subscriber or subscription which may not be consistent with
how we define a subscription for our reporting purposes nor be
representative of how such subscription fees are calculated and paid to us
by our MSOs/Broadcasters. Our MSOs/Broadcasters subscription data is based
in part on reporting from our third party MSOs/Broadcasters partners.
Management reviews this metric, and
believes it may be useful to investors, in order to evaluate our ability to
retain existing TiVo-Owned subscriptions (including both monthly and
product lifetime subscriptions) by providing services that are competitive
in the market. Management believes factors such as service enhancements,
service commitments, higher customer satisfaction, and improved customer
support may improve this metric. Conversely, management believes factors
such as increased competition, lack of competitive service features such as
high definition television recording capabilities in our older model DVRs
or access to certain digital television channels or MSO Video-on-Demand
services, as well as, increased price sensitivity and installation and
CableCARD™ technology limitations may cause our TiVo-Owned Churn Rate
per month to increase.
We define the TiVo-Owned Churn Rate per month as the total TiVo-Owned
subscription cancellations in the period divided by the Average TiVo-Owned
subscriptions for the period (including both monthly and product lifetime
subscriptions), which then is divided by the number of months in the
period. We calculate Average TiVo-Owned subscriptions for the period by
adding the average TiVo-Owned subscriptions for each month and dividing by
the number of months in the period. We calculate the average TiVo-Owned
subscriptions for each month by adding the beginning and ending
subscriptions for the month and dividing by two. We are not aware of any
uniform standards for calculating churn and caution that our presentation
may not be consistent with that of other companies.
Management reviews this
metric, and believes it may be useful to investors, in order to evaluate
trends in the efficiency of our marketing programs and subscription
acquisition strategies. We define SAC as our total TiVo-Owned acquisition
costs for a given period divided by TiVo-Owned subscription gross additions
for the same period. We define total acquisition costs as sales and
marketing, subscription acquisition costs less net TiVo-Owned related
hardware revenues (defined as TiVo-Owned related gross hardware revenues
less rebates, revenue share and market development funds paid to retailers)
plus TiVo-Owned related cost of hardware revenues. The sales and marketing,
subscription acquisition costs line item includes advertising expenses and
promotion-related expenses directly related to subscription acquisition
activities, but does not include expenses related to advertising sales. We
do not include third parties' subscription gross additions, such as
MSOs/Broadcasters' gross additions with TiVo subscriptions, in our
calculation of SAC because we typically incur limited or no acquisition
costs for these new subscriptions, and so we also do not include
MSOs/Broadcasters' sales and marketing, subscription acquisition costs,
hardware revenues, or cost of hardware revenues in our calculation of
TiVo-Owned SAC. We are not aware of any uniform standards for calculating
total acquisition costs or SAC and caution that our presentation may not be
consistent with that of other companies.
Management reviews this
metric, and believes it may be useful to investors, in order to evaluate
the potential of our subscription base to generate revenues from a variety
of sources, including service fees, advertising, and audience research
measurement. You should not use ARPU as a substitute for measures of
financial performance calculated in accordance with GAAP. Management
believes it is useful to consider this metric excluding the costs
associated with rebates, revenue share, and other payments to channel
because of the discretionary and varying nature of these expenses and
because management believes these expenses, which are included in hardware
revenues, net, are more appropriately monitored as part of SAC. We are not
aware of any uniform standards for calculating ARPU and caution that our
presentation may not be consistent with that of other companies.
Furthermore, ARPU for our MSOs/Broadcasters may not be directly comparable
to the service fees we may receive from these partners on a per
subscription basis as the fees that our MSOs/Broadcasters pay us may be
based upon a specific contractual definition of a subscriber or
subscription which may not be consistent with how we define a subscription
for our reporting purposes or be representative of how such subscription
fees are calculated and paid to us by our MSOs/Broadcasters. For example,
an agreement that includes contractual minimums may result in a higher than
expected MSOs/Broadcasters ARPU if such fixed minimum fee is spread over a
small number of subscriptions.
We calculate ARPU per month for TiVo-Owned subscriptions by subtracting
MSOs/Broadcaster-related service revenues (which includes
MSOs/Broadcasters' subscription service revenues and MSOs/
Broadcasters'-related advertising revenues) from our total reported net
service revenues and dividing the result by the number of months in the
period. We then divide by Average TiVo-Owned subscriptions for the period,
calculated as described above for churn rate. The above table shows this
calculation.
We calculate ARPU per month for MSOs/Broadcasters' subscriptions by first
subtracting TiVo-Owned-related service revenues (which includes TiVo-Owned
subscription service revenues and TiVo-Owned related advertising revenues)
from our total reported service revenues. Then we divide average revenues
per month for MSOs/Broadcasters'-related service revenues by the average
MSOs/Broadcasters' subscriptions for the period. The above table shows this
calculation.
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 24.08.2011 - 14:01 Uhr
Sprache: Deutsch
News-ID 1033594
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
ALVISO, CA
Phone:
Kategorie:
Television
Anmerkungen:
Diese Pressemitteilung wurde bisher 150 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"TiVo Reports Results for the Second Quarter Ended July 31, 2011
"
steht unter der journalistisch-redaktionellen Verantwortung von
TiVo (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
