TIVO INC

CIK:0001088825|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Revenues
Service and software revenues	$ 46,375	$ 43,098	$ 92,521	$ 82,947
Technology revenues	52,706	55,998	106,274	108,569
Hardware revenues	8,579	20,358	16,122	42,672
Net revenues	107,660	119,454	214,917	234,188
Cost of revenues
Cost of service and software revenues	16,180	15,171	32,430	30,610
Cost of technology revenues	7,377	8,710	14,686	14,846
Cost of hardware revenues	10,226	20,185	20,736	42,756
Total cost of revenues	33,783	44,066	67,852	88,212
Gross margin	73,877	75,388	147,065	145,976
Research and development	22,038	26,309	50,022	51,323
Sales and marketing	9,740	11,930	20,243	22,871
Sales and marketing, subscription acquisition costs	898	1,117	2,043	2,808
General and administrative	17,769	15,880	38,320	30,702
Restructuring Costs	18	0	3,746	0
Total operating expenses	50,463	55,236	114,374	107,704
Income from operations	23,414	20,152	32,691	38,272
Interest income	1,222	953	2,479	1,838
Interest expense and other income (expense)	(3,367)	(5,044)	(7,698)	(9,878)
Income before income taxes	21,269	16,061	27,472	30,232
Provision for income taxes	(7,884)	(7,722)	(9,932)	(14,014)
Net income	$ 13,385	$ 8,339	$ 17,540	$ 16,218
Net income per common share
Basic (in dollars per share)	$ 0.14	$ 0.09	$ 0.18	$ 0.18
Diluted (in dollars per share)	$ 0.14	$ 0.09	$ 0.18	$ 0.17
Income for purposes of computing net income per share:
Basic	$ 13,385	$ 8,339	$ 17,540	$ 16,218
Diluted	$ 13,385	$ 9,595	$ 18,020	$ 18,729
Weighted average common and common equivalent shares:
Basic (in shares)	95,603,639	92,382,999	95,071,320	92,139,957
Diluted (in shares)	97,679,600	110,381,018	100,345,879	111,442,972

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 17,540	$ 16,218
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization of property and equipment and intangibles	9,230	8,132
Stock-based compensation expense	10,674	14,206
Amortization of discounts and premiums on investments	1,439	3,171
Change in fair value of contingent purchase consideration	795	256
Deferred income taxes	8,239	12,917
Amortization of debt issuance costs and debt discount	3,733	3,937
Allowance for doubtful accounts	71	80
Changes in assets and liabilities:
Accounts receivable	6,646	(5,017)
Inventories	3,734	2,911
Deferred cost of technology revenues	(2,353)	1,544
Prepaid expenses and other	1,849	1,103
Accounts payable	(2,230)	(6,896)
Accrued liabilities	(15,768)	(12,915)
Deferred revenue	(24,179)	(22,871)
Other long-term liabilities	795	(147)
Net cash provided by operating activities	20,215	16,629
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments	(114,455)	(214,027)
Sales or maturities of short-term investments	517,286	234,805
Purchase of long-term investment	0	(2,420)
Payments to Acquire Businesses, Net of Cash Acquired	0	(16,616)
Acquisition of property and equipment and other long-term assets	(5,785)	(4,884)
Acquisition of intangible assets	0	(1,000)
Net cash provided by (used in) investing activities	397,046	(4,142)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock related to exercise of common stock options	6,775	7,482
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options	0	3,823
Maturity of notes payable	(132,500)	0
Treasury stock - repurchase of stock	(6,410)	(28,854)
Net cash used in financing activities	(132,135)	(17,549)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	107	(122)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	285,233	(5,184)
CASH AND CASH EQUIVALENTS:
Balance at beginning of period	159,392	178,217
Balance at end of period	$ 444,625	$ 173,033

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 444,625	$ 159,392
Short-term investments	83,669	486,677
Accounts receivable, net of allowance for doubtful accounts of $542 and $521, respectively	48,996	55,654
Inventories	13,801	17,535
Deferred cost of technology revenues, current	6,693	3,910
Prepaid expenses and other, current	9,987	12,717
Total current assets	607,771	735,885
LONG-TERM ASSETS
Property and equipment, net of accumulated depreciation of $57,375 and $56,188, respectively	14,587	12,629
Intangible assets, net of accumulated amortization of $46,985 and $41,471, respectively	52,631	57,627
Deferred cost of technology revenues, long-term	11,878	12,277
Goodwill	109,059	108,735
Deferred tax asset, long-term	145,143	155,719
Prepaid expenses and other, long-term	7,270	6,934
Total long-term assets	340,568	353,921
Total assets	948,339	1,089,806
CURRENT LIABILITIES
Accounts payable	19,358	21,243
Accrued liabilities	38,920	53,305
Deferred revenue, current	169,703	166,361
Convertible senior notes, current	0	132,409
Total current liabilities	227,981	373,318
LONG-TERM LIABILITIES
Deferred revenue, long-term	151,612	179,133
Convertible senior notes, long-term	186,024	182,382
Deferred Tax Liabilities, Net, Noncurrent	2,399	2,588
Other long-term liabilities	7,586	7,466
Total long-term liabilities	347,621	371,569
Total liabilities	575,602	744,887
COMMITMENTS AND CONTINGENCIES (see Note 6)
STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.001: Authorized shares are 10,000,000; Issued and outstanding shares - none	0	0
Common stock, par value $0.001: Authorized shares are 275,000,000; Issued shares are 146,299,861 and 143,473,136, respectively, and outstanding shares are 100,236,552 and 98,206,449, respectively	145	142
Treasury stock, at cost: 46,063,309 and 45,266,687 shares, respectively	(552,154)	(545,744)
Additional paid-in capital	1,267,374	1,251,865
Accumulated deficit	(340,443)	(357,983)
Accumulated other comprehensive income (loss)	(2,185)	(3,361)
Total stockholders’ equity	372,737	344,919
Total liabilities and stockholders’ equity	$ 948,339	$ 1,089,806