TiVo Narrows Losses, Grows Subscribers22 Aug, 2002 By: Hive News
Digital video recorder (DVR) maker TiVo Inc. turned in a better-than-expected quartlery performance today and announced licensing and distribution agreements that should give it more muscle in coming quarters.
Among the favorable developments are a licensing deal that puts TiVo technology in a Sony DVR the companies expect to have in U.S. stores by the holidays. Sony is already marketing the product in Japan.
TiVo also expanded its sales channels, adding Tweeter, Amazon.com and Ultimate Electronics to the companies that will stock its Series 2 DVRs, Best Buy, The Good Guys! and ABT Electronics already carry the set-tops.
"The Series2 DVR will be available in more stores than ever, offering consumers a broader selection of retailers for their TiVo purchase," said TiVo chairman and CEO Mike Ramsay.
Revenue for the quarter totaled $23.9 million, nearly six times revenues of $4.1 million for the same period last year. Gross profit on service and licensing revenue for the quarter was $16.3 million, a margin of 68 percent.
Operating cash usage, as measured by Adjusted EBITDA, improved 63 percent to -$8.8 million, from -$24 million in the second quarter of last year. TiVo' s net loss for the quarter was $3 million, or ($0.06) per share, compared to -$34.5 million, or -$0.82 per share in the second quarter of last year. During the second quarter, TiVo added 42,000 net subscribers, bringing the total subscriber base to approximately 464,000. TiVo's subscriber base has more than doubled in the past 12 months, the company reported.
"Our record top-line results for the quarter validate our growth strategy and clearly demonstrate TiVo's ongoing progress toward profitability," said Mike Ramsay. "The revenue momentum behind our licensing efforts reflects the growing importance of TiVo's DVR technology and patents to the world's leading consumer electronics companies and service providers."
TiVo management revised its revenue estimates for the current fiscal year up from a range of $50 million to $60 million to a range of $57 million to $62 million. In addition, management is revising its operating loss guidance to an improved level of $64 to $72 million, from $65 to $80 million. Management is also narrowing the range of fiscal year 2003 net subscriber addition estimates to a range of 250,000 to 275,000.