TiVo announces the strongest growth yet.

TiVo announces the strongest growth yet.Distributed by
Thomson in the UKCoverPosted: March 11th, 2002. Strong Consumer Demand Strengthens TiVo’s Market Lead and Drives Record Results;TiVo Unveils Improved Outlook for Year

  • Company adds 100,000 new subscribers in record fourth quarter, posting 147% growth intotal global subscriber base for the year;
  • Annual revenues grew by 318%, operating expenses declined by 25%, and cash burn, asdefined by Adjusted EBITDA, improved by $80 million in the year;
  • DIRECTV signs commercial agreement to deploy TiVo’s next generation platform.

    London; March 8, 2002; TiVo Inc. [Nasdaq: TIVO], the creator of and leader of television services for digital video recording, today announced financial results for the fourth quarter and year ended January 31, 2002.

    Record Consumer Demand Extends TiVo’s Market Leadership

    TiVo added approximately 100,000 new subscribers in the fourth quarter,bringing the total global subscriber base to approximately 380,000 as ofJanuary 31, 2002. The company’s subscriber base grew by 226,000, representing147% growth during the year.

    Record Revenue Growth Drives Dramatic Improvement in Results and Reduction in CashBurn. Company Targets Cash Flow Breakeven in Current Year.

    Revenue for the quarter increased 212% to $6.8 million, compared with $2.2 million for the threemonths ended January 31, 2001. Cash burn for the quarter was $23.8 million, compared with $65.0million for the three months ended January 31, 2001. Net loss for the quarter was $38.5 million, or$(0.85) per share, a dramatic improvement from a net loss of $81.5 million, or $(2.00) per share,for the three months ended January 31, 2001.

    Revenues for the fiscal year ended January 31, 2002 grew 318% to $19.4 million, compared with$4.6 million for the twelve months ended January 31, 2001. Cash burn for the year decreased by$80 million. Net loss for the year was $157.7 million, or $(3.67) per share, compared to a net lossof $216.6 million, or $(5.75) per share for the twelve months ended January 31, 2001.

    “These results represent strong execution of our service business, which is driven by recurringrevenues from subscriptions. In addition, with a disciplined focus on reducing operating costs andsubsidies, we were able to reduce our operating expenses by 25% from the previous year, and 50%from the fourth quarter of last year,” said Mike Ramsay, Chairman and CEO of TiVo. “This year,we expect revenue from licensing and technology to complement our growing service revenue. Webelieve we are on track to achieve our goal of reaching cash flow breakeven by the end of thisfiscal year, a significant objective for us.”

    Important Commercial Agreement Signed

    TiVo recently announced an important US commercial agreement that will drive subscriber growthat much lower acquisition costs.

    DIRECTV has chosen TiVo as the platform for DIRECTV’s next-generationsatellite receiver. This new deal with DIRECTV, the leading satellite serviceprovider, calls for 2002 delivery of the new platform. In addition, it callsfor the two companies to collaborate on deployment of future entertainmentservices on DIRECTV, based on TiVo technology.

    Andrew Cresci, Vice President for Europe explains; “Demand for TiVoreached an all time high this quarter & demonstrates the accelerating momentumfor TiVo as the key driver in the digital video recorder category both in theUS and UK. Our new partnerships broaden our ability to economically deliverthe highest quality entertainment service in line with consumer demand.”

    The Company’s fiscal year 2003 business outlook on its quarterly financialresults can be accessed via an archived web cast onwww.tivo.com

    TheTiVo review isonline now.

    News page content input by Dominic Robinson, 2002.

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