Does TIVO and HAUP have anything to do with each other? Or maybe HAUP just moved on TIVO's subscriber numbers.
Strong Consumer Demand More than Triples Q1
Subscription Growth for TiVo; Lower Prices and Broad
Availability Drive Record Results
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, 2004 (PRNewswire-FirstCall via COMTEX) -- 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
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