Tivo's (TIVO) loss increases; expects to turn profitable in Q4

Mar.11.05 | About: TiVo Inc. (TIVO)

Tivo Inc. (ticker: TIVO) reported results on March 10, 2005 for
the fiscal 2005 fourth quarter and full year.  Below are some highlights.

Results fiscal 4Q05 vs. fiscal 4Q04:

  • EPS: $(0.42) vs. $(0.18)
  • Consensus EPS was $(0.43)
  • Revenue: $59.4M vs. $42.6M (+39%)
  • Consensus revenue was $33.3M
  • Gross profit: $(3.7M) vs. $8.2M
  • Gross margin: (6.2)% vs. 19.2%
  • Operating Income: $(30.6M) vs. $(6.5M)
  • Operating margin: (51.5)% vs. (15.3)%
  • Net income: $(33.7M) vs. $(12.4M)
  • Net margin: (56.7)% vs. (29.1)%
  • Cash: $106.3M vs. $143.2M (-26%)
  • Debt: $4.5M vs. $6M (-25%)
  • Free cash flow: $17.3M vs. $12.8M (+35%)

Revenue breakdown fiscal 4Q05 vs. fiscal 4Q04:

  • Service: $33 vs. $19.1 (+73%)
  • Technology: $1.2 vs. $2.1 (-43%)
  • Hardware: $50.5 vs. $25.5 (+98%)
  • Rebates: $(25.2M) vs. $(4.1M)

Guidance fiscal 1Q06:

  • Service & Technology revenues: $37.4M - $38.0M
  • Rebates: $(10.0M) - $(11.0M)
  • Cost of services & technology: $9.2M - $9.5M
  • Hardware gross profit: $(2.0M) - $(3.0M)
  • Gross profit: $14.2M - $16.5M
  • Net loss: $(8.0M) - $(10.0M)

Subscriptions adds Guidance fiscal 1Q06:

  • Tivo-owned: 65k - 75k
  • DirecTV-owned: 200k - 225k
  • Total: 265k - 300k

Guidance fiscal 2006:

  • Service & Technology revenues: $155M - $165M
  • Net loss: $(10M) - $(25M)

Quick comments:

  • Tivo expects to be profitable by next Q4
  • Net subscription additions in Q4 was 698,000 bringing total subs to 3+ million
  • Redeemed remaning $10.5 million  of convertible notes in Q4 resulting in a non-cash charge of $3.2 million; Tivo no longer has any long term debt
  • Going forward, Tivo will only issue guidance for the coming quarter

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