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TiVo Q3 Revenue Jumps 139%

11/22/2002 09:30:00 AM Eastern

San Jose, Calif. - TiVo's fiscal third quarter revenue, which includes the service and technology segments, increased 139 percent, hitting $12.7 million, up from $5.3 million in the year-ago period.

At the same time, TiVo, the creator of television services for digital video recording, substantially reduced its net loss in the third quarter, down to $11.5 million, compared with a net loss of $34.5 million in the same period in 2001.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) came in at a negative $6.4 million, down from a negative EBITDA of $25.9 million in the same quarter the previous year.

Adjusted EBITDA (EBITDA, plus the change in deferred revenue in the reporting period) hit a record low in the third quarter, said TiVo, coming in at a negative $4.6 million, compared with a negative $12.2 million year-on-year.

TiVo added 46,000 net new subscribers in the third quarter, ending Oct. 31, bringing its total subscriber base to about 510,000. Compared with the third quarter of 2001, TiVo's subscriber base has grown over 80 percent.

For the nine months, TiVo total revenue more than doubled, to $27.9 million, up from $12.5 million in the same period in 2001. Net loss was reduced to $49.7 million, compared with a loss of $119.1 million in the same nine months a year ago. EBITDA dropped to a negative $26.7 million, down from a negative $97.9 million in the same nine months last year.

Looking ahead to the fourth quarter, TiVo expects $11.4 million to $11.8 million in service and technology revenue, with an operating loss of $15.5 million to $17.4 million. Adjusted EBITA is anticipated at break even, and net subscriber growth at 120,000 to 130,000.

TiVo expects to add 450,000 to 600,000 subscribers in next year's fiscal 12 months, more than double the number it anticipates adding in the current fiscal year. This would result in an installed base of well over 1 million subscribers by the end if fiscal 2004.

Service and technology revenue for the 12 months is expected to be $62 million to $70 million, with total operating loss for the year anticipated in the range of $27 million to $38 million.