Form 8-K
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
 
Date of Report: November 21, 2002
(Date of earliest event reported)
 
TIVO INC.
(exact name of registrant as specified in its charter)
 
 
Delaware
  
Commission File:
000-27141
  
77-0463167
(State or other jurisdiction of incorporation or organization)
      
(I.R.S. Employer Identification No.)
 
2160 Gold Street
P.O. Box 2160
Alviso, California 95002
(Address of Principal executive offices, including zip code)
 
(408) 519-9100
(Registrant’s telephone number, including area code)
 
 

 
ITEM 5. OTHER EVENTS
 
On November 21, 2002 we announced financial results for our quarter ended October 31, 2002.
 
Service and technology revenue for the quarter grew 139% to $12.7 million, compared to $5.3 million for the same period last year. Our net loss for the quarter improved to ($11.5) million, or ($0.23) per share, an approximately 70% improvement over our loss of ($34.5) million, or ($0.81) per share, in the third quarter of last year.
 
Other highlights of the quarter included an increase in the subscriber base to 510,000, the addition of Toshiba to our list of licensing partners, and the addition of Circuit City to our growing list of retailers now offering TiVo products.
 
During the period, we added 46,000 net new subscribers, bringing our total subscriber base to approximately 510,000. Compared to the third quarter of last year, our subscriber base has grown over 80 percent.

 
TIVO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except subscriber and per share data)
 
    
Three Months Ended
     
Nine Months Ended
  
    
October 31, 2002
     
October 31, 2001
     
October 31, 2002
     
October 31, 2001
  
Service revenues
   
$
10,185
 
   
$
5,242
 
   
$
27,911
 
   
$
12,544
 
Technology revenues
   
 
2,556
 
   
 
100
 
   
 
18,544
 
   
 
100
 
    
  
  
  
Service and Technology revenues
   
 
12,741
 
   
 
5,342
 
   
 
46,455
 
   
 
12,644
 
Hardware sales
   
 
16,220
 
   
 
—  
 
   
 
31,109
 
   
 
—  
 
Rebates, revenue share & other payments to channel *
   
 
(3,968
)
   
 
—  
 
   
 
(4,568
)
   
 
—  
 
    
  
  
  
Net revenues
   
 
24,993
 
   
 
5,342
 
   
 
72,996
 
   
 
12,644
 
Cost of revenue
   
 
5,294
 
   
 
5,218
 
   
 
18,323
 
   
 
15,093
 
Cost of hardware sales
   
 
15,588
 
   
 
—  
 
   
 
30,599
 
   
 
—  
 
    
  
  
  
Gross profit (loss)
   
 
4,111
 
   
 
124
 
   
 
24,074
 
   
 
(2,449
)
    
  
  
  
Research and development
   
 
4,875
 
   
 
7,510
 
   
 
14,395
 
   
 
21,331
 
Sales and marketing
   
 
4,333
 
   
 
18,467
 
   
 
44,152
 
   
 
77,168
 
General and administrative
   
 
3,752
 
   
 
5,326
 
   
 
11,100
 
   
 
14,287
 
    
  
  
  
Operating loss
   
 
(8,849
)
   
 
(31,179
)
   
 
(45,573
)
   
 
(115,235
)
    
  
  
  
Interest and other expense, net
   
 
2,520
 
   
 
1,659
 
   
 
2,232
 
   
 
316
 
Preferred stock dividend and accretion
   
 
—  
 
   
 
658
 
   
 
1,665
 
   
 
2,590
 
Provision for taxes
   
 
150
 
   
 
1,000
 
   
 
261
 
   
 
1,000
 
    
  
  
  
Net loss attributable to common stock
   
$
(11,519
)
   
$
(34,496
)
   
$
(49,731
)
   
$
(119,141
)
    
  
  
  
Net loss per share - basic and diluted
   
$
(0.23
)
   
$
(0.81
)
   
$
(1.02
)
   
$
(2.82
)
    
  
  
  
Shares used in per share computation
   
 
51,041
 
   
 
42,668
 
   
 
48,793
 
   
 
42,183
 
    
  
  
  
Other Data
                                    
Net Activations
   
 
46,000
 
   
 
51,000
 
   
 
130,000
 
   
 
126,000
 
Cumulative Subscribers
   
 
510,000
 
   
 
280,000
 
   
 
510,000
 
   
 
280,000
 
 
*    Reflects TiVo's adoption of EITF 01-09, a new accounting rule which requires that certain sales & marketing expenses be treated as an offset to revenues rather than as sales and marketing expense.

 
TIVO INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
 
 
      
October 31, 2002
       
January 31, 2002
  
ASSETS
                      
Cash, cash equivalents and short-term investments
     
$
40,593
 
     
$
52,327
 
Restricted cash
     
 
—  
 
     
 
51,735
 
Accounts receivable, net
     
 
11,453
 
     
 
2,185
 
Accounts receivable - related parties
     
 
2,654
 
     
 
6,687
 
Inventories
     
 
5,068
 
     
 
—  
 
Prepaid expenses and other
     
 
6,604
 
     
 
6,431
 
Prepaid expenses and other - related parties
     
 
7,447
 
     
 
12,423
 
Property and equipment, net
     
 
13,979
 
     
 
18,146
 
      
    
Total assets
     
$
87,798
 
     
$
149,934
 
      
    
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK & STOCKHOLDERS' DEFICIT
                      
Accounts payable and accrued liabilities
     
$
36,104
 
     
$
28,915
 
Accounts payable and accrued liabilities - related parties
     
 
5,663
 
     
 
28,902
 
Deferred revenue
     
 
47,716
 
     
 
36,338
 
Deferred revenue - related parties
     
 
3,560
 
     
 
11,427
 
Convertible notes payable, long term
     
 
9,478
 
     
 
18,315
 
Convertible notes payable - related parties, long term
     
 
4,979
 
     
 
9,426
 
Redeemable convertible preferred stock
     
 
—  
 
     
 
46,555
 
Total stockholders' deficit
     
 
(19,702
)
     
 
(29,944
)
      
    
Liabilities, redeemable convertible preferred stock & stockholders' deficit
     
$
87,798
 
     
$
149,934
 
      
    

 
Forward-Looking Statements
 
This Current Report on Form 8-K forward-looking statements. You can identify forward-looking statements by use of forward-looking terminology such as “believes,” “anticipates,” “expects,” “plans,” “may,” “will,” “intends” or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Such forward-looking statements have known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. Actual results could differ materially from those set forth in such 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 “Factors That May Affect Future Operating Results” and other risks detailed in our Annual Report on Form 10-K for the period ended January 31, 2002, the Quarterly Report on Form 10-Q for the period ended April 30, 2002, and the Quarterly Report on Form 10-Q for the period ended July 31, 2002, filed with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which reflect our analysis only and speak only as of the date hereof.

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
       
TIVO INC.
Date: November 25, 2002
      
By:
  
/s/    David H. Courtney        
               
David H. Courtney
Chief Financial Officer and Executive
Vice President, Worldwide Operations
and Administration
(Principal Financial and Accounting
Officer)