Tuesday, August 23, 2005

TiVo Reaches Financial Breakeven

As of the end of its second fiscal quarter on 31-July-2005, TiVo's total subscriptions reached nearly 3.6 million, with the addition of 254,000 total net new subscriptions in the quarter. TiVo-Owned gross subscription additions were 77,000 for the quarter, compared to 78,000 in the second quarter of last year. TiVo-Owned net subscription additions were 40,000, compared to 63,000 in the second quarter of last year. The installed base of DIRECTV subscriptions is now approximately 2.3 million with the addition of 214,000 net new subscriptions in the quarter.

Service and technology revenues for the quarter increased 46% to $40.7 million, compared with $27.8 million for the same period last year. TiVo reported net income of $240,000 and earnings per share of $0.00, a significant improvement compared to a net loss of ($10.8) million, or ($0.13) per share, for the second quarter of last year.

For the third quarter of 2006, TiVo anticipates service and technology revenues in the range of $41 million to $43 million and a net loss of $20 to $25 million.

Tom Rogers, CEO of TiVo, said, "While it is encouraging that we hit break- even this quarter, it is clear TiVo faces a number of significant challenges. In directly facing those challenges there is considerable long-term potential that can be realized. To that end, we have begun to aggressively attack a number of critical issues in sales, marketing, and distribution."

Rogers continued, "Driving growth in the number of subscriptions at TiVo is the biggest critical challenge we face. Given the increasingly competitive environment, approaching this area more aggressively than we have in the past requires additional investment in subscription acquisition. We will be announcing a number of new promotional initiatives in the fall, one of which combines a hardware and service offer which we believe will be well received in the upcoming holiday season."http://www.tivo.com

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