Thread: TIVO reports continued losses at an excellerated rate

TIVO just reported qtrly losses of $.28 a share for the qtr, up from .18 last qtr. This is 3 times the losses per qtr as the same period last year.

TIVO's product line generates a negative 28% profit or a loss but still has a balance of revenue of $282M with No debt. Therefore, it is relatively safe from becoming backrupt for the next 15 months. Legal fees and operating costs are covered by cash reserves and the equipment has a profit margin of 50% so inventory is covered within the cost of goods sold.

Annual sales is $232M with loss to revenue of $60M.

Here's hoping Charlie can delay it all for 16 months......

I read today that TIVO management is planning to go ahead and accelerate their budget for R&D which will only accelerate the reduction of capital. It has been my experience when a company does this move, they are getting ready to have a secondary public offering to finance the effort. In today's market, this would probably be a good move because investors are eager to find PO's to put all the sidelined cash into. Not so two years ago. This is a good move for the company, a bad move for existing investors. TIVO has a great reputation for innovation so this is their main asset to sell to the investors. They could never sell an SPO with the claim they need the money to keep from going bankrupt. So, R&D is a smart move for TIVO.

Do you really think an investor who examines the company would invest significant money in it? Who would put out a BUY recommendation on TiVo?

And sorry, I think their innovation days ended years ago. And that major investors will see it that way too.

I own a premiere. TIVO has been behind the curve on updates and features throughout the deployment.
Examples:
Brain dead Netflix interface that requires placing items in queue from PC. Only items in queue can be accessed for download
no 5.1 on netflix (or any downloaded content)
Amazon streaming on demand released on every VoD platform EXCEPT Premiere
Menus are slow and crash, especially HD menus.
Locks up occasionally and won't respond to remote.
Hulu support promised "soon" for 9 months now.
No support of 2 way cable, so no video on demand from cable provider.
Weak OTA tuner.

And this doesn't begin to touch the billing and customer support issues. Only reason I stick here is that they are head and shoulders above the TWC boxes and service.

However, I will probably jump when IP delivery of cable content becomes reality.

Originally Posted by navychop

Do you really think an investor who examines the company would invest significant money in it? Who would put out a BUY recommendation on TiVo?

And sorry, I think their innovation days ended years ago. And that major investors will see it that way too.

Agreed! But I have bought TIVO in the last 2 years as a trader, not an investor. It has good beta for that purpose. Longest hold time I've been in has been about a month maximum. I rode the move once from $7 to $16 which was my best return. It continued to go to $18 before falling back down to $10. Hasn't had a move like that since. But, $7.50 to $10.50 ain't bad. You just have to watch it daily to not get burned.

So you have a hobby and time sink outside of Satguys?

Tivo is looking for more money-

TiVo Unveils Terms Of Boosted Debt Offering With 4% Coupon
8:04a ET March 9, 2011 (Dow Jones)
TiVo Unveils Terms Of Boosted Debt Offering With 4% Coupon
DOW JONES NEWSWIRES

TiVo Inc. (TIVO) boosted the size of its planned debt offering to $150 million and said it will carry a 4% coupon as the company seeks proceeds to fund intellectual property litigation and research and development, among other purposes.
The company had outlined plans Tuesday to offer $120 million in five-year, convertible senior notes.
TiVo has filed a slew of patent-infringement suits over its digital-video-recorder technology. It is in the midst of a years-long legal battle with Dish Network Corp. (DISH) and EchoStar Corp. (SATS) and has accused AT&T Inc. (T) of the same patent oversteps that it claims Verizon communications Inc. (VZ) made. Meanwhile, Motorola Mobility Holdings Inc. (MMI) last month filed a suit against TiVo, claiming infringement of its patents for DVRs.
Shares closed Tuesday at $8.75 and were inactive premarket.

TiVo Inc. (NASDAQ: TIVO) announced today the pricing of its private offering of $150 million aggregate principal amount of 4.00% Convertible Senior Notes due 2016 to be sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended. The size of the offering has been increased from the previously announced $120 million aggregate principal amount. TiVo has granted the initial purchaser a 30-day option to purchase up to an additional $22.5 million aggregate principal amount of notes to cover over-allotments, if any. The offering is expected to close on March 10, 2011, subject to certain closing conditions.

The notes will be TiVo's unsecured senior obligations and will pay interest semi-annually at a rate of 4.00% per year. The holders of the notes will have the ability to require TiVo to repurchase the notes in whole or in part for cash in the event of a fundamental change. In such case, the repurchase price would generally be 100% of the principal amount of the notes plus any accrued and unpaid interest.

The notes will be convertible at any time, at the option of the holders, into shares of TiVo's common stock at an initial conversion rate of 89.6359 shares per $1,000 principal amount of notes. At the initial conversion rate, the initial conversion price will be approximately $11.16 per share, representing a conversion premium of approximately 27.5% based on the closing sale price of $8.75 per share of TiVo's common stock on the Nasdaq Global Market on March 8, 2011. In addition, following certain corporate transactions that occur prior to the maturity date, TiVo will, in certain circumstances, increase the conversion rate for a holder that elects to convert its notes in connection with such a corporate transaction.

TiVo intends to use the net proceeds from the sale of the notes to fund intellectual property litigation and research and development spending and for general corporate purposes, which may include funding sales and marketing expenses, increasing working capital, making capital expenditures and potentially for strategic acquisitions.

This announcement is neither an offer to sell nor a solicitation to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

The notes and any common stock issuable upon conversion of the notes have not been registered under the Securities Act of 1933, as amended, or under any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, the use of proceeds from the offering of the notes. 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, lack of market acceptance and adverse litigation outcomes, as well as the other potential factors described under "Risk Factors" in TiVo's public reports filed with the Securities and Exchange Commission, including TiVo's Annual Report on Form 10-K for the fiscal year ended January 31, 2010, Quarterly Reports on Form 10-Q for periods ended April 30, 2010, July 31, 2010, and October 31, 2010, and Current Reports on Form 8-K. TiVo cautions 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.

SOURCE: TiVo

I posted quotes yesterday from the WJS about TiVo's new debt offering in the Dish TiVo thread. Pretty much their main business plan is to win the Dish lawsuit. If they do not win this suit they do not seem to have a plan B.

http://www.satelliteguys.us/213197-d...ml#post2478129