TiVo affirms guidance; touts patent licensing
TiVo Inc. affirmed its guidance for its second quarter and full year 2002, and said it intends to reach breakeven cash flow by the end of its next fiscal year. It also says it anticipates in 2003 about 85 percent growth in its subscriber base and expects revenue to triple over 2002.
The company cites its recently awarded PVR patents and subsequent licenses as a big player in the revenue jump.
"While we're not making any announcements of licensing deals today, we do expect that licensing revenue will contribute a significant portion of nonsubscriber revenue over the next few years," said President and CEO Mike Ramsay during a conference call. He added that the company is discussing licensing with several companies, but would not say who those were.
New subscribers in 2003 should run about 300,000, the company reports, and end with more than 650,000 total.
TiVo expects revenue in the $63 million to $72 million range for its fiscal year ending January 2003, or about three times the anticipated revenue of $20 million to $24 million ending January 2002. Nonsubscription revenue will run about 30 percent to 40 percent of that, including the technology licensing and ITV advertising revenue.
The company expects operating losses of $145 million to $155 million for FY 2002 and $96 million to $108 million in 2003.
It is not changing its outlook for the current quarter, Ramsay said.
TiVo had announced net losses of $50.2 million or $1.20 per share for the quarter ending April 30. In January, it had reported a net loss of $81.5 million or $2 a share for the quarter.
The patent, on the company's Multimedia Timewarping System, covers methods of recording a program while playing back another or watching a program as it is recording. The system also processes and synchronizes various multimedia streams such as a TV signal, including video, audio and closed captioning, and has a storage format that supports advanced Trickplay capabilities. Trickplay entails pausing live broadcasts, fast-forwarding, rewinding, instant replays and slow motion.