DIRECTV with TiVo subscription additions grew nearly 5x compared to Q1 of last
year; TiVo owned subscription additions nearly double in the same period
Service revenues grew 74% in the quarter, compared to Q1 of last year
Management reiterates plans to double subscription base in current year
SAN JOSE, Calif., May 25 /PRNewswire-FirstCall/ - TiVo (Nasdaq: TIVO), the
creator of and a leader in television services for digital video recorders
(DVRs), reported today that it added a record 264,000 subscriptions in the
first quarter, more than three times the number added in Q1 of last year.
Total cumulative subscriptions grew to nearly 1.6 million, more than double
the subscription base TiVo reported a year ago.
Net revenues for the quarter were $34.5 million. Of this amount, Service
revenues were $22.2 million, which represents growth of 74% compared to the
same quarter of last year. Net loss for the quarter was ($9.1) million, or
($0.11) per share, compared to a net loss of ($7.9) million, or ($0.12) per
share, for the three months ended April 30, 2003.
Of the 264,000 new subscriptions added in the quarter, approximately
196,000 resulted from TiVo's relationship with DIRECTV, nearly five times the
number of DIRECTV subscriptions added in Q1 of last year. New TiVo Service
subscriptions additions in the quarter were 68,000, an 84% increase compared
to Q1 of last year.
DIRECTV with TiVo and Series2 DVRs Momentum Drive Record Q1 Results
The explosive growth of DIRECTV with TiVo in Q1 demonstrates the growing
strength of what is one of the best experiences in television home
entertainment: the DIRECTV DVR with TiVo. The record number of DIRECTV
activations in the quarter was driven by increased product availability, the
$99 price point, and a variety of promotional programs directed at the DIRECTV
subscriber base.
"Today, with nearly 900,000 subscribers with TiVo, DIRECTV is aggressively
marketing the TiVo service as a key differentiator for subscriber retention
and revenue growth," commented Mike Ramsay, Chairman and Chief Executive
Officer of TiVo. In addition to the current DIRECTV with TiVo product, DIRECTV
recently began shipping its new High Definition DVR with TiVo.
Demand for TiVo Series2 DVRs at retail was also stronger than expected.
"In March, TiVo unveiled a new investment plan focused on accelerating growth
of TiVo Service subscriptions in the year, and Q1's record demand for our TiVo
Series2 platforms is a direct result of these efforts," continued Mr. Ramsay.
"We believe increasing our investment to accelerate growth of these high value
customers will result in greater financial returns over the long term,
beginning with achieving sustainable profitability by the end of next fiscal
year."
Management Reiterates Outlook for FY-05; Provides Guidance for the Second
Quarter
In March, TiVo unveiled a plan to invest up to an additional $50 million
in subscription acquisition activities focused on accelerating growth of TiVo
subscriptions to improve long-term financial returns. Management continues to
expect record growth in the number of new subscriptions this fiscal year,
doubling TiVo's subscription base to nearly 3 million and positioning the
Company for sustainable profitability by the end of next fiscal year.
For the second quarter ending July 31, 2004, management expects 265,000 to
300,000 net subscription additions, ending the period with approximately
1.9 million subscriptions. Management expects 65,000 to 75,000 TiVo Service
subscription net additions for the second quarter. In addition, management
expects 200,000 to 225,000 DIRECTV subscription net additions.
Below is additional detail of management's guidance:
Second Quarter Management Guidance
(in millions, except subscription numbers)
Quarter ending
July 31, 2004
Service Revenues $23.0 - $23.7
Technology Revenues $2.0 - $2.1
Service and Technology Revenues $25.0 - $25.8
Rebates, Revenue Share, and Other Payments to Channel $(7.4) - $(7.7)
Cost of Service and Technology Revenues $(8.1) - $(8.5)
Hardware Gross Profit $(5.8) - $(6.1)
Gross Profit $3.1 - $4.1
Operating Loss $(19.0) - $(21.0)
TiVo Service Subscription Net Additions 65,000 - 75,000
DIRECTV Subscription Net Additions 200,000 - 225,000
Total Subscriptions Net Additions 265,000 - 300,000
Cumulative Subscriptions Approx. 1.9 million
Conference Call and Web Cast
TiVo will host a conference call to discuss first quarter financial and
operating performance at 2:00 pm PT (5:00 pm ET), today, May 25, 2004. To
listen to the discussion, please visit http://www.tivo.com/ir and click on the link
provided for the webcast conference call or dial (913) 981-5571 and use the
password 693214. The webcast will be archived and available through June 1,
2004 at http://www.tivo.com/ir or by calling (719) 457-0820 and entering the
conference ID number 693214.
About TiVo
Founded in 1997, TiVo, a pioneer in home entertainment, created a brand
new category of products with the development of the first digital video
recorder (DVR). Today, the Company continues to revolutionize the way
consumers watch and access home entertainment bymaking TiVo the focal point of
the digital living room, a center for sharing and experiencing television,
music, photos, and other content. TiVo connects consumers to the digital
entertainment they want, where, and when they want it. The Company has
licensed its technology to companies like Pioneer, Toshiba, Sony, and DIRECTV,
who have included the TiVo service in their product offerings. The Company
currently has over 1.5 million subscriptions and is based in San Jose, CA.
Additional information can be found at http://www.tivo.com.
This release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements relate to, among other things, TiVo's business, services, business
development, strategy, customers or other factors that may affect future
earnings or financial results. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as, "believe,"
"expect," "may," "will," "intend," "estimate," "continue," or similar
expressions or the negative of those terms or expressions. Such statements
involve risks and uncertainties, which could cause actual results to vary
materially from those expressed in or indicated by the 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."
More information on potential factors that could affect the Company's
financial results is included from time to time in the Company's public
reports filed with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the fiscal year ended January 31,
2004, filed with the Securities and Exchange Commission. We caution you not to
place undue reliance on forward-looking statements, which reflect an analysis
only and speak only as of the date hereof. TiVo disclaims any obligation to
update these forward-looking statements.
year; TiVo owned subscription additions nearly double in the same period
Service revenues grew 74% in the quarter, compared to Q1 of last year
Management reiterates plans to double subscription base in current year
SAN JOSE, Calif., May 25 /PRNewswire-FirstCall/ - TiVo (Nasdaq: TIVO), the
creator of and a leader in television services for digital video recorders
(DVRs), reported today that it added a record 264,000 subscriptions in the
first quarter, more than three times the number added in Q1 of last year.
Total cumulative subscriptions grew to nearly 1.6 million, more than double
the subscription base TiVo reported a year ago.
Net revenues for the quarter were $34.5 million. Of this amount, Service
revenues were $22.2 million, which represents growth of 74% compared to the
same quarter of last year. Net loss for the quarter was ($9.1) million, or
($0.11) per share, compared to a net loss of ($7.9) million, or ($0.12) per
share, for the three months ended April 30, 2003.
Of the 264,000 new subscriptions added in the quarter, approximately
196,000 resulted from TiVo's relationship with DIRECTV, nearly five times the
number of DIRECTV subscriptions added in Q1 of last year. New TiVo Service
subscriptions additions in the quarter were 68,000, an 84% increase compared
to Q1 of last year.
DIRECTV with TiVo and Series2 DVRs Momentum Drive Record Q1 Results
The explosive growth of DIRECTV with TiVo in Q1 demonstrates the growing
strength of what is one of the best experiences in television home
entertainment: the DIRECTV DVR with TiVo. The record number of DIRECTV
activations in the quarter was driven by increased product availability, the
$99 price point, and a variety of promotional programs directed at the DIRECTV
subscriber base.
"Today, with nearly 900,000 subscribers with TiVo, DIRECTV is aggressively
marketing the TiVo service as a key differentiator for subscriber retention
and revenue growth," commented Mike Ramsay, Chairman and Chief Executive
Officer of TiVo. In addition to the current DIRECTV with TiVo product, DIRECTV
recently began shipping its new High Definition DVR with TiVo.
Demand for TiVo Series2 DVRs at retail was also stronger than expected.
"In March, TiVo unveiled a new investment plan focused on accelerating growth
of TiVo Service subscriptions in the year, and Q1's record demand for our TiVo
Series2 platforms is a direct result of these efforts," continued Mr. Ramsay.
"We believe increasing our investment to accelerate growth of these high value
customers will result in greater financial returns over the long term,
beginning with achieving sustainable profitability by the end of next fiscal
year."
Management Reiterates Outlook for FY-05; Provides Guidance for the Second
Quarter
In March, TiVo unveiled a plan to invest up to an additional $50 million
in subscription acquisition activities focused on accelerating growth of TiVo
subscriptions to improve long-term financial returns. Management continues to
expect record growth in the number of new subscriptions this fiscal year,
doubling TiVo's subscription base to nearly 3 million and positioning the
Company for sustainable profitability by the end of next fiscal year.
For the second quarter ending July 31, 2004, management expects 265,000 to
300,000 net subscription additions, ending the period with approximately
1.9 million subscriptions. Management expects 65,000 to 75,000 TiVo Service
subscription net additions for the second quarter. In addition, management
expects 200,000 to 225,000 DIRECTV subscription net additions.
Below is additional detail of management's guidance:
Second Quarter Management Guidance
(in millions, except subscription numbers)
Quarter ending
July 31, 2004
Service Revenues $23.0 - $23.7
Technology Revenues $2.0 - $2.1
Service and Technology Revenues $25.0 - $25.8
Rebates, Revenue Share, and Other Payments to Channel $(7.4) - $(7.7)
Cost of Service and Technology Revenues $(8.1) - $(8.5)
Hardware Gross Profit $(5.8) - $(6.1)
Gross Profit $3.1 - $4.1
Operating Loss $(19.0) - $(21.0)
TiVo Service Subscription Net Additions 65,000 - 75,000
DIRECTV Subscription Net Additions 200,000 - 225,000
Total Subscriptions Net Additions 265,000 - 300,000
Cumulative Subscriptions Approx. 1.9 million
Conference Call and Web Cast
TiVo will host a conference call to discuss first quarter financial and
operating performance at 2:00 pm PT (5:00 pm ET), today, May 25, 2004. To
listen to the discussion, please visit http://www.tivo.com/ir and click on the link
provided for the webcast conference call or dial (913) 981-5571 and use the
password 693214. The webcast will be archived and available through June 1,
2004 at http://www.tivo.com/ir or by calling (719) 457-0820 and entering the
conference ID number 693214.
About TiVo
Founded in 1997, TiVo, a pioneer in home entertainment, created a brand
new category of products with the development of the first digital video
recorder (DVR). Today, the Company continues to revolutionize the way
consumers watch and access home entertainment bymaking TiVo the focal point of
the digital living room, a center for sharing and experiencing television,
music, photos, and other content. TiVo connects consumers to the digital
entertainment they want, where, and when they want it. The Company has
licensed its technology to companies like Pioneer, Toshiba, Sony, and DIRECTV,
who have included the TiVo service in their product offerings. The Company
currently has over 1.5 million subscriptions and is based in San Jose, CA.
Additional information can be found at http://www.tivo.com.
This release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements relate to, among other things, TiVo's business, services, business
development, strategy, customers or other factors that may affect future
earnings or financial results. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as, "believe,"
"expect," "may," "will," "intend," "estimate," "continue," or similar
expressions or the negative of those terms or expressions. Such statements
involve risks and uncertainties, which could cause actual results to vary
materially from those expressed in or indicated by the 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."
More information on potential factors that could affect the Company's
financial results is included from time to time in the Company's public
reports filed with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the fiscal year ended January 31,
2004, filed with the Securities and Exchange Commission. We caution you not to
place undue reliance on forward-looking statements, which reflect an analysis
only and speak only as of the date hereof. TiVo disclaims any obligation to
update these forward-looking statements.
