Company Reports Strong Q1 Results
Vodafone Spain is First to Deploy the Next-Generation of TiVo’s
Award-Winning User Experience
Remains On Track to Achieve $100 million+ Cost Synergy Target
Declares Second Quarter Cash Dividend of $0.18 per Share
Company Website:
http://www.tivo.com
SAN CARLOS, Calif. -- (Business Wire)
TiVo Corporation (NASDAQ:TIVO) today reported financial results for the
first quarter ended March 31, 2017.
“Our strong Q1 financial results affirm last year’s acquisition that
formed the new TiVo,” said Tom Carson, President and CEO of TiVo. Mr.
Carson added, “Vodafone Spain’s rollout of our most advanced television
experience demonstrates the product leadership and innovation that
excited us about the TiVo acquisition and we’re pleased with this
deployment. Additionally, the long-term IP agreement with Roku
demonstrates the value of the company’s patent portfolios in the OTT
space. We are well on the way to fully integrating the two companies’
product lines and continue on schedule to deliver at least $100 million
in cost synergies, with 65% coming from actions taken within 12 months
of the closing of the transaction.”
Mr. Carson added, “We remain confident in TiVo’s ability to continue to
generate substantial positive cash flows. As such, TiVo will pay its
second quarter cash dividend of $0.18 per common share in June.”
First Quarter Results
The Company reported first quarter revenue of $206 million, an increase
of 74% compared to $118 million in the first quarter of 2016. As
expected, revenues were higher than in the comparable period of the
prior year due to the acquisition of TiVo Solutions Inc. in the third
quarter of 2016, which contributed $85 million in revenues in the
current quarter. First quarter 2017 Net loss was $35 million, compared
to a Net loss of $18 million for the first quarter of 2016.
On a Non-GAAP basis, first quarter 2017 Non-GAAP Pre-tax Income was $54
million, compared to $32 million in the first quarter of 2016. Estimated
cash taxes for the quarter were approximately $6 million. GAAP Diluted
weighted average shares outstanding were 119 million and Non-GAAP
Diluted Weighted Average Shares Outstanding for the first quarter of
2017 were 120 million.
Non-GAAP Pre-tax Income is defined below in the section entitled
“Non-GAAP Information.” Reconciliations between GAAP and Non-GAAP
amounts are provided in the tables below.
Business Outlook
For fiscal year 2017, the Company expects revenue of $800 million to
$835 million, including approximately $30 million of hardware revenues
at the mid-point of expectations, with GAAP loss before taxes of $83
million to $68 million and Non-GAAP Pre-tax Income of $200 million to
$225 million. The Company now anticipates 49% of its full year revenues
in the first half of year and 51% in the second half of the year. In
terms of costs, costs include Non-GAAP Cost of hardware revenue of
approximately $40 million at the mid-point of expectations. TiVo
anticipates it will incur $23 million to $24 million in Cash Taxes based
on its 2017 operating expectations. For fiscal year 2017, TiVo expects
its GAAP diluted weighted average shares outstanding to be approximately
121 million and Non-GAAP Diluted Weighted Average Shares Outstanding to
be approximately 122 million shares.
Capital Allocation
On April 30, 2017, TiVo’s Board of Directors declared a cash dividend of
$0.18 per common share, to be paid on June 20, 2017, to all stockholders
of record as of the close of business on June 6, 2017. TiVo’s Board
believes it can reward its stockholders with a meaningful dividend for
the second quarter in a row, while maintaining ample capacity for the
company to invest in the business, pursue its long-term growth
aspirations, and consider additional capital allocation alternatives
such as opportunistic stock repurchases.
TIVO BUSINESS AND OPERATING HIGHLIGHTS:
Products:
-
Approximately 23 million subscriber households around the world use
TiVo’s advanced television experiences.
-
Vodafone Spain launched a new version of Vodafone TV incorporating the
next-gen TiVo UI and nDVR (network DVR), becoming the first operator
to launch integrated video services and 4K content in Spain.
-
Sky, Europe’s leading entertainment company, launched voice search
across linear TV and video on demand (VOD) powered by TiVo’s knowledge
graph engine, incorporating trends and conversations, on Sky’s
next-generation box, Sky Q.
-
Sharp Corporation selected TiVo’s G-Guide HTML enabling advanced
search with a browser-based graphical interface and design that can be
displayed in 4K for their new Blu-ray disc recorders “AQUOS Blu-ray UT
series”.
-
Introduced Studio, Broadcast and Network Metadata Packages
incorporating themes, keywords, images and related programs to allow
studios, broadcasters and networks to increase the visibility and
monetization of their catalogs.
-
Launched TiVo SongConnect, a music metadata package that relates
versions of a song to a single master work, allowing providers to
organize alternate variations of a song.
-
Turner has selected TiVo as its EMEA metadata distributor to power and
manage Turner’s electronic program guide (EPG) metadata distribution
and service, which covers 44 EMEA channels.
-
Launched TiVo’s Audience Management Platform (AMP) to deliver
optimized audience targeting and data-driven TV.
IP Licensing:
-
TiVo continued to expand its over-the-top (OTT) intellectual property
(IP) licensing program and announced agreements with various leading
companies, such as:
-
Roku, Inc., a leading TV streaming platform, which signed a
long-term IP license.
-
Discovery Communications, a leading TV programmer, which signed a
long-term IP license.
-
DWANGO Co., Ltd., a leading video entertainment company in Japan,
which signed a long-term IP license for niconico, the popular
video hosting service.
Conference Call Information
TiVo management will host a conference call today, May 3, 2017, at 2:00
p.m. PT/5:00 p.m. ET to discuss the financial results. Investors and
analysts interested in participating in the conference are welcome to
call (866) 621-1214 (or international +1-706-643-4013) and reference
conference ID 97064356. The conference call can also be accessed via
live webcast in the Investor Relations section of TiVo's website at
http://www.tivo.com/.
A telephonic replay of the conference call will be available through May
10, 2017 and can be accessed by dialing (855) 859-2056 (or international
+1-404-537-3406) and entering conference ID 97064356. A replay of the
audio webcast will be available on TiVo Corporation's website shortly
after the live call ends and will remain on TiVo Corporation's website
until its next quarterly earnings call.
Non-GAAP Financial Information
TiVo Corporation provides Non-GAAP information to assist investors in
assessing its operations in the way that its management evaluates those
operations. Non-GAAP Pre-Tax Income, Non-GAAP Cost of licensing,
services and software revenues, Non-GAAP Cost of hardware revenues,
Non-GAAP Research and Development Expenses, Non-GAAP Selling, General
and Administrative Expenses, Non-GAAP Total OpEx, Non-GAAP Total COGS
and OpEx, and Non-GAAP Interest Expense are supplemental measures of the
Company's performance that are not required by, and are not determined
in accordance with, GAAP. Non-GAAP financial information is not a
substitute for any financial measure determined in accordance with GAAP.
Non-GAAP Pre-tax Income is defined as GAAP income (loss) from continuing
operations before income taxes, as adjusted for the effects of items
such as amortization of intangible assets, equity-based compensation,
accretion of contingent consideration, amortization or write-off of note
issuance costs and discounts on convertible debt and mark-to-market
adjustments for interest rate swaps; as well as items which impact
comparability that are required to be recorded under GAAP, but that the
Company believes are not indicative of its core operating results such
as restructuring and asset impairment charges, transaction, transition
and integration costs, changes in the liability for dissenting
shareholders, retention earn-outs payable to former shareholders of
acquired businesses, changes in the fair value of contingent
consideration, expenses in connection with the extinguishment or
modification of debt and gains on the sale of strategic investments and
changes in franchise tax reserves.
Non-GAAP Cost of licensing, services and software revenues is defined as
GAAP cost of licensing, services and software revenues, excluding
depreciation and amortization of intangible assets, excluding
equity-based compensation and transition and integration expenses.
Included in Transaction, transition and integration costs in the fourth
quarter of 2016 was $10.0 million in expenses for additional guaranteed
license payments related to the Company’s over-the-top licensing
partnership with Intellectual Ventures. These payments were expensed in
the fourth quarter of 2016 as the payments were triggered by the
execution of a patent license agreement during the quarter and are not
expected to be recoverable from the net direct revenue resulting from
the patent license agreement and the related TiVo product partnership.
This expense was included in Transaction, transition and integration
costs as the patent license agreement was entered into as part of
continuing, and broadening, the product relationship with TiVo.
Non-GAAP Cost of hardware revenues is defined as GAAP cost of hardware
revenues, excluding depreciation and amortization of intangible assets,
excluding transition and integration expenses.
Non-GAAP Research and Development Expenses is defined as GAAP research
and development expenses excluding equity-based compensation, transition
and integration expenses and retention earn-outs payable to former
shareholders of acquired businesses.
Non-GAAP Selling, General and Administrative Expenses is defined as GAAP
selling, general and administrative expenses excluding equity-based
compensation, transaction, transition and integration expenses,
retention earn-outs payable to former shareholders of acquired
businesses, changes in the fair value of contingent consideration and
changes in franchise tax reserves.
Non-GAAP Total OpEx is defined as the sum of GAAP research and
development and selling, general and administrative expenses,
depreciation and gain on sale of patents excluding equity-based
compensation, transaction, transition and integration expenses,
retention earn-outs payable to former shareholders of acquired
businesses, changes in the fair value of contingent consideration and
changes in franchise tax reserves.
Non-GAAP Total COGS and OpEx is defined as GAAP Total Operating costs
and expenses, excluding amortization of intangible assets, restructuring
and asset impairment charges, equity-based compensation, transaction,
transition and integration expenses, retention earn-outs payable to
former shareholders of acquired businesses, changes in the fair value of
contingent consideration and changes in franchise tax reserves.
Non-GAAP Interest Expense is defined as GAAP interest expense, excluding
interest on franchise tax reserves, accretion of contingent
consideration, amortization or write-off of issuance costs and discounts
on convertible debt plus the reclassification of the current period
benefit (cost) of the interest rate swaps from gain (loss) on interest
rate swaps.
Cash Taxes are defined as GAAP current income tax expense excluding
changes in reserves for unrecognized tax benefits.
Non-GAAP Diluted Weighted Average Shares Outstanding is defined as GAAP
diluted weighted average shares outstanding except for periods of a GAAP
loss. In periods of a GAAP loss, GAAP diluted weighted average shares
outstanding are adjusted to include dilutive common share equivalents
outstanding that were excluded from GAAP diluted weighted average shares
outstanding because the Company had a loss and therefore these shares
would have been anti-dilutive.
The Company's management evaluates and makes decisions about its
business operations primarily based on Non-GAAP financial information.
Management uses Non-GAAP financial measures as the basis for
decision-making as they exclude items management does not consider to be
“core costs” or “core proceeds”. For each Non-GAAP financial measure,
the adjustment provides management with information about the Company's
underlying operating performance that enables a more meaningful
comparison to its historical and projected financial performance in
different reporting periods. For example, since the Company does not
acquire businesses on a predictable cycle, management excludes the
amortization of intangible assets, transaction, transition and
integration costs, changes in the liability for dissenting shareholders,
retention earn-outs payable to former shareholders of acquired
businesses and changes in contingent consideration from its Non-GAAP
financial measures in order to make more consistent and meaningful
evaluations of the Company's operating expenses as these items may be
significantly impacted by the timing and magnitude of acquisitions.
Management also excludes the effect of restructuring and asset
impairment charges, expenses in connection with the extinguishment or
modification of debt and gains on the sale of strategic investments.
Management excludes the impact of equity-based compensation to provide
meaningful supplemental information that allows investors greater
visibility to the underlying performance of our business operations,
facilitates comparison of our results with other periods, and may
facilitate comparison with the results of other companies in our
industry, as well as to provide the Company’s management with an
important tool for financial and operational decision making and for
evaluating the Company’s performance over different periods of time. Due
to varying valuation techniques, reliance on subjective assumptions and
the variety of award types and features that may be in use, we believe
that providing Non-GAAP financial measures excluding equity-based
compensation allows investors to make more meaningful comparisons
between our operating results and those of other companies. Management
excludes the amortization or write-off of note issuance costs and
discounts on convertible debt, accretion of contingent consideration and
mark-to-market adjustments for interest rate swaps when management
evaluates the Company's operating expenses. Management reclassifies the
current period benefit (cost) of the interest rate swaps from gain
(loss) on interest rate swaps to interest expense in order for Non-GAAP
Interest Expense to reflect the effects of the interest rate swaps as
these interest rate swaps were entered into to control the effective
interest rate the Company pays on its debt.
Management uses these Non-GAAP financial measures to help it make
decisions, including decisions that affect operating expenses and
operating margin. Management believes that making Non-GAAP financial
information available to investors, in addition to GAAP financial
information, may facilitate more consistent comparisons between the
Company's performance over time with the performance of other companies
in our industry, which may use similar financial measures to supplement
their GAAP financial information.
Management recognizes that these Non-GAAP financial measures have
limitations as analytical tools, including the fact that management must
exercise judgment in determining which types of items to exclude from
the Non-GAAP financial information. In addition, as other companies,
including companies similar to TiVo Corporation, may calculate their
Non-GAAP financial measures differently than the Company calculates its
Non-GAAP financial measures, these Non-GAAP financial measures may have
limited usefulness to investors when comparing financial performance
among companies. Management believes, however, that providing Non-GAAP
financial information, in addition to GAAP financial information,
facilitates consistent comparison of the Company's financial performance
over time. The Company provides Non-GAAP financial information to the
investment community, not as an alternative, but as an important
supplement to GAAP financial information; to enable investors to
evaluate the Company's core operating performance in the same way that
management does. Reconciliations for each Non-GAAP financial measure to
its most directly comparable GAAP financial measure is provided in the
tables below.
About TiVo Corporation
TiVo (NASDAQ: TIVO) is a global leader in entertainment technology and
audience insights. From the interactive program guide to the DVR, TiVo
delivers innovative products and licensable technologies that
revolutionize how people find content across a changing media landscape.
TiVo enables the world’s leading media and entertainment providers to
deliver the ultimate entertainment experience. Explore the next
generation of entertainment at tivo.com, forward.tivo.com or follow us
on Twitter @tivo or @tivoforbusiness.
Forward Looking Statements
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 Company's estimates of future
financial performance, including future revenues, earnings, expenses,
and dividends, as well as future business strategies and future product
offerings, deployments and technology and intellectual property licenses
with various named customers. These forward-looking statements are based
on TiVo’s current expectations, estimates and projections about its
business and industry, management’s beliefs and certain assumptions made
by the company, all of which are subject to change. Forward-looking
statements generally can be identified by the use of forward-looking
terminology such as, “future,” “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 and higher costs in connection with the integration of TiVo Inc.
(now known as TiVo Solutions Inc.), delays in development, competitive
service offerings and lack of market acceptance, as well as the other
potential factors described under “Risk Factors” included in TiVo’s
Annual Report on Form 10-K for fiscal year ended December 31, 2016, its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, and
other documents of TiVo Corporation on file with the Securities and
Exchange Commission (available at www.sec.gov). 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 assumes no
obligation to update any forward-looking statements in order to reflect
events or circumstances that may arise after the date of this release,
except as required by law.
|
|
| |
TIVO CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except per share amounts) |
(Unaudited) |
| | |
|
| | | Three Months Ended March 31, |
| | | 2017 |
|
| 2016 |
Revenues, net:
| | | | | | |
Licensing, services and software
| | |
$
|
190,550
| | | |
$
|
118,011
| |
Hardware
| | |
15,214
|
| | |
373
|
|
Total Revenues, net
| | |
205,764
| | | |
118,384
| |
Costs and expenses:
| | | | | | |
Cost of licensing, services and software revenues, excluding
depreciation and amortization of intangible assets
| | |
42,306
| | | |
22,308
| |
Cost of hardware revenues, excluding depreciation and amortization
of intangible assets
| | |
14,221
| | | |
229
| |
Research and development
| | |
48,922
| | | |
22,064
| |
Selling, general and administrative
| | |
53,949
| | | |
36,687
| |
Depreciation
| | |
5,472
| | | |
4,234
| |
Amortization of intangible assets
| | |
41,700
| | | |
19,132
| |
Restructuring and asset impairment charges
| | |
4,539
|
| | |
2,333
|
|
Total costs and expenses
| | |
211,109
|
| | |
106,987
|
|
Operating (loss) income
| | |
(5,345
|
)
| | |
11,397
| |
Interest expense
| | |
(10,264
|
)
| | |
(10,531
|
)
|
Interest income and other, net
| | |
(63
|
)
| | |
(17
|
)
|
Income (loss) on interest rate swaps
| | |
521
| | | |
(13,087
|
)
|
Loss on debt extinguishment
| | |
(108
|
)
| | |
—
| |
Loss on debt modification
| | |
(929
|
)
| | |
—
| |
Litigation settlement
| | |
(12,906
|
)
| | |
—
|
|
Loss before income taxes
| | |
(29,094
|
)
| | |
(12,238
|
)
|
Income tax expense
| | |
5,567
|
| | |
5,414
|
|
Net loss
| | |
$
|
(34,661
|
)
| | |
$
|
(17,652
|
)
|
| | | | | |
|
Basic earnings (loss) per share
| | |
$
|
(0.29
|
)
| | |
$
|
(0.22
|
)
|
Weighted average shares used in computing basic per share amounts
| | |
118,813
| | | |
81,375
| |
| | | | | |
|
Diluted earnings (loss) per share
| | |
$
|
(0.29
|
)
| | |
$
|
(0.22
|
)
|
Weighted average shares used in computing diluted per share amounts
| | |
118,813
| | | |
81,375
| |
| | | | | |
|
Dividends declared per share
| | |
$
|
0.18
| | | |
$
|
—
| |
| | | | | | | | | |
|
See notes to the Condensed Consolidated Financial Statements in
our Quarterly Report on Form 10-Q.
|
| | | | | | | | | |
|
|
|
| |
|
| |
TIVO CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands, except per share amounts) |
| | | | | |
|
| | | March 31, | | | December 31, |
| | | 2017 | | | 2016 |
ASSETS | | |
(Unaudited)
| | | |
Current assets:
| | | | | | |
Cash and cash equivalents
| | |
$
|
187,636
| | | |
$
|
192,627
| |
Short-term marketable securities
| | |
103,307
| | | |
117,084
| |
Accounts receivable, net
| | |
174,832
| | | |
147,142
| |
Inventory
| | |
11,563
| | | |
13,186
| |
Prepaid expenses and other current assets
| | |
35,239
|
| | |
37,400
|
|
Total current assets
| | |
512,577
| | | |
507,439
| |
Long-term marketable securities
| | |
122,655
| | | |
128,929
| |
Property and equipment, net
| | |
45,716
| | | |
48,372
| |
Intangible assets, net
| | |
767,612
| | | |
806,838
| |
Goodwill
| | |
1,813,691
| | | |
1,812,118
| |
Other long-term assets
| | |
21,333
|
| | |
17,147
|
|
Total assets
| | |
$
|
3,283,584
|
| | |
$
|
3,320,843
|
|
| | | | | |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
Current liabilities:
| | | | | | |
Accounts payable and accrued expenses
| | |
$
|
226,648
| | | |
$
|
226,451
| |
Deferred revenue
| | |
45,286
| | | |
49,145
| |
Current portion of long-term debt
| | |
7,000
|
| | |
7,000
|
|
Total current liabilities
| | |
278,934
| | | |
282,596
| |
Taxes payable, less current portion
| | |
4,966
| | | |
4,893
| |
Deferred revenue, less current portion
| | |
44,039
| | | |
43,545
| |
Long-term debt, less current portion
| | |
969,827
| | | |
967,732
| |
Deferred tax liabilities, net
| | |
78,283
| | | |
77,454
| |
Other long-term liabilities
| | |
34,104
|
| | |
34,987
|
|
Total liabilities
| | |
1,410,153
| | | |
1,411,207
| |
Stockholders' equity:
| | | | | | |
Common stock
| | |
121
| | | |
121
| |
Treasury stock
| | |
(19,267
|
)
| | |
(9,646
|
)
|
Additional paid-in capital
| | |
3,286,905
| | | |
3,280,905
| |
Accumulated other comprehensive loss
| | |
(4,972
|
)
| | |
(7,049
|
)
|
Accumulated deficit
| | |
(1,389,356
|
)
| | |
(1,354,695
|
)
|
Total stockholders’ equity
| | |
1,873,431
|
| | |
1,909,636
|
|
Total liabilities and stockholders’ equity
| | |
$
|
3,283,584
|
| | |
$
|
3,320,843
|
|
| | | | | | | | | |
|
See notes to the Condensed Consolidated Financial Statements in
our Quarterly Report on Form 10-Q.
|
| | | | | | | | | |
|
|
|
| |
TIVO CORPORATION AND SUBSIDIARIES |
REVENUE BY SEGMENT |
(In thousands) |
(Unaudited) |
| | |
|
| | | Three Months Ended March 31, |
| | | 2017 |
|
| 2016 |
Intellectual Property Licensing Revenues:
| | | | | | |
US Pay TV Providers
| | |
$
|
63,344
| | | |
$
|
33,310
|
Other
| | |
27,377
|
| | |
22,950
|
Total Intellectual Property Licensing Revenues
| | |
90,721
| | | |
56,260
|
| | | | | |
|
Product Revenues:
| | | | | | |
Platform Solutions
| | |
88,183
| | | |
35,484
|
Software and Services
| | |
25,269
| | | |
20,387
|
Other
| | |
1,591
|
| | |
6,253
|
Total Product Revenues
| | |
115,043
| | | |
62,124
|
| | |
| | |
|
Total Revenues
| | |
$
|
205,764
|
| | |
$
|
118,384
|
| | | | | | | | |
|
|
|
| |
TIVO CORPORATION AND SUBSIDIARIES |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION |
(In thousands) |
(Unaudited) |
| | |
|
| | | Three Months Ended March 31, |
| | |
| 2017 |
|
|
|
| 2016 |
|
GAAP Loss before income taxes
| | |
$
|
(29,094
|
)
| | |
$
|
(12,238
|
)
|
Amortization of intangible assets
| | | |
41,700
| | | | |
19,132
| |
Restructuring and asset impairment charges
| | | |
4,539
| | | | |
2,333
| |
Equity-based compensation
| | | |
14,025
| | | | |
8,438
| |
Transaction, transition and integration costs
| | | |
7,199
| | | | |
—
| |
Earnout amortization
| | | |
958
| | | | |
—
| |
Reduction of contingent consideration liability
| | | |
(324
|
)
| | | |
—
| |
Loss on debt extinguishment
| | | |
108
| | | | |
—
| |
Loss on debt modification
| | | |
929
| | | | |
—
| |
Litigation settlement
| | | |
12,906
| | | | |
—
| |
Accretion of contingent consideration
| | | |
155
| | | | |
—
| |
Amortization of note issuance costs
| | | |
522
| | | | |
480
| |
Amortization of convertible note discount
| | | |
3,106
| | | | |
2,965
| |
Mark-to-market (income) loss related to interest rate swaps
| | |
|
(2,762
|
)
| | |
|
10,988
|
|
Non-GAAP Pre-tax Income
| | |
$
|
53,967
|
| | |
$
|
32,098
|
|
| | |
|
| | | Three Months Ended March 31, |
| | |
| 2017 |
| | |
| 2016 |
|
GAAP Diluted weighted average shares outstanding
| | | |
118,813
| | | | |
81,375
| |
Dilutive effect of equity-based compensation awards
| | |
|
1,503
|
| | |
|
1,082
|
|
Non-GAAP Diluted Weighted Average Shares Outstanding
| | |
|
120,316
|
| | |
|
82,457
|
|
| | |
|
| | | Three Months Ended March 31, |
| | |
| 2017 |
| | |
| 2016 |
|
GAAP Cost of licensing, services and software revenues, excluding
depreciation and amortization of intangible assets
| | |
$
|
42,306
| | | |
$
|
22,308
| |
Equity-based compensation
| | | |
(1,044
|
)
| | | |
(1,062
|
)
|
Transition and integration costs
| | |
|
(99
|
)
| | |
|
—
|
|
Non-GAAP Cost of licensing, services and software revenues
| | |
$
|
41,163
|
| | |
$
|
21,246
|
|
| | |
|
| | | Three Months Ended March 31, |
| | |
| 2017 |
| | |
| 2016 |
|
GAAP Cost of hardware revenues, excluding depreciation and
amortization of intangible assets
| | |
$
|
14,221
| | | |
$
|
229
| |
Transition and integration costs
| | |
|
(1,359
|
)
| | |
|
—
|
|
Non-GAAP Cost of hardware revenues
| | |
$
|
12,862
|
| | |
$
|
229
|
|
| | |
|
| | | Three Months Ended March 31, |
| | |
| 2017 |
| | |
| 2016 |
|
GAAP Research and development expenses
| | |
$
|
48,922
| | | |
$
|
22,064
| |
Equity-based compensation
| | | |
(3,997
|
)
| | | |
(593
|
)
|
Transition and integration costs
| | | |
(1,240
|
)
| | | |
—
| |
Earnout amortization
| | |
|
(184
|
)
| | |
|
—
|
|
Non-GAAP Research and Development Expenses
| | |
$
|
43,501
|
| | |
$
|
21,471
|
|
| | |
|
| | | Three Months Ended March 31, |
| | |
| 2017 |
| | |
| 2016 |
|
GAAP Selling, general and administrative expenses
| | |
$
|
53,949
| | | |
$
|
36,687
| |
Equity-based compensation
| | | |
(8,984
|
)
| | | |
(6,783
|
)
|
Transaction, transition and integration costs
| | | |
(4,501
|
)
| | | |
—
| |
Earnout amortization
| | | |
(774
|
)
| | | |
—
| |
Reduction of contingent consideration liability
| | |
|
324
|
| | |
|
—
|
|
Non-GAAP Selling, General and Administrative Expenses
| | |
$
|
40,014
|
| | |
$
|
29,904
|
|
| | |
|
| | | Three Months Ended March 31, |
| | |
| 2017 |
| | |
| 2016 |
|
GAAP Total Operating costs and expenses
| | |
$
|
211,109
| | | |
$
|
106,987
| |
Amortization of intangible assets
| | | |
(41,700
|
)
| | | |
(19,132
|
)
|
Restructuring and asset impairment charges
| | | |
(4,539
|
)
| | | |
(2,333
|
)
|
Equity-based compensation
| | | |
(14,025
|
)
| | | |
(8,438
|
)
|
Transaction, transition and integration costs
| | | |
(7,199
|
)
| | | |
—
| |
Earnout amortization
| | | |
(958
|
)
| | | |
—
| |
Reduction of contingent consideration liability
| | |
|
324
|
| | |
|
—
|
|
Non-GAAP Total COGS and OpEx
| | |
$
|
143,012
|
| | |
$
|
77,084
|
|
| | |
|
| | | Three Months Ended March 31, |
| | |
| 2017 |
| | |
| 2016 |
|
GAAP Interest expense
| | |
$
|
(10,264
|
)
| | |
$
|
(10,531
|
)
|
Accretion of contingent consideration
| | | |
155
| | | | |
—
| |
Amortization of note issuance costs
| | | |
522
| | | | |
480
| |
Amortization of convertible note discount
| | | |
3,106
| | | | |
2,965
| |
Reclassify current period cost of interest rate swaps
| | |
|
(2,242
|
)
| | |
|
(2,099
|
)
|
Non-GAAP Interest Expense
| | |
$
|
(8,723
|
)
| | |
$
|
(9,185
|
)
|
| | | | | | | | | |
|
|
|
| |
|
|
| |
TIVO CORPORATION AND SUBSIDIARIES |
RECONCILIATION OF GAAP TO NON-GAAP FORECAST FINANCIAL INFORMATION |
(In millions) |
(Unaudited) |
| | | | | | |
|
| | | Current 2017 Full Year Outlook | | | | 2016 Full Year Actual |
| | | Low |
|
| High | | | |
GAAP Loss before income taxes (1)
| | |
$
|
(83
|
)
| | |
$
|
(68
|
)
| | | |
$
|
(24.4
|
)
|
Amortization of intangible assets
| | |
166
| | | |
166
| | | | |
105.0
| |
Restructuring and asset impairment charges
| | |
6
| | | |
8
| | | | |
27.3
| |
Equity-based compensation
| | |
60
| | | |
64
| | | | |
47.7
| |
Transaction, transition and integration costs
| | |
19
| | | |
22
| | | | |
40.0
| |
Earnout amortization
| | |
4
| | | |
4
| | | | |
2.5
| |
Litigation settlement
| | |
13
| | | |
13
| | | | |
—
| |
Mark-to-market income related to interest rate swaps (1)
| | |
(3
|
)
| | |
(3
|
)
| | | |
(5.8
|
)
|
Amortization of note issuance costs and convertible debt discount
| | |
14
| | | |
14
| | | | |
14.0
| |
Other
| | |
4
|
| | |
5
|
| | | |
(1.0
|
)
|
Non-GAAP Pre-tax Income (1)
| | |
$
|
200
|
| | |
$
|
225
|
| | | |
$
|
205.3
|
|
| | | | | | | | | |
|
Cash taxes
| | |
$
|
23
| | | |
$
|
24
| | | | |
$
|
24.3
| |
| | | | | | | | | |
|
(1) Due to their nature, changes in the mark-to-market of interest
rate swaps have only been included in the outlook to the extent they
have already occurred. Actual results may differ materially from the
outlook.
|
|
|
|
| |
| | | Current 2017 |
| | | Full Year |
| | | Outlook |
GAAP Diluted weighted average shares outstanding
| | |
121
|
Dilutive effect of equity-based compensation awards
| | |
1
|
Non-GAAP Diluted Weighted Average Shares Outstanding
| | |
122
|
| | |
|
|
|
| |
| | | Current 2017 |
| | | Full Year |
| | | Outlook |
Cost of hardware revenues, excluding depreciation and amortization
of intangible assets
| | |
$
|
42
| |
Transition and integration costs
| | |
(2
|
)
|
Non-GAAP Cost of hardware revenues
| | |
$
|
40
|
|
| | | | |
|
|
|
| |
| | | Current Q4 2017 |
| | | Outlook |
GAAP Total Operating costs and expenses
| | |
$
|
196
| |
Amortization of intangible assets
| | |
(41
|
)
|
Restructuring and asset impairment charges
| | |
(1
|
)
|
Equity-based compensation
| | |
(16
|
)
|
Transaction, transition and integration costs
| | |
(2
|
)
|
Earnout amortization
| | |
(1
|
)
|
Non-GAAP Total COGS and OpEx
| | |
$
|
135
|
|
| | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170503006430/en/
Contacts:
Investor Contacts
TiVo Corporation
Peter Halt, +1
818-295-6800
CFO
or
TiVo Corporation
Peter Ausnit,
+1 818-565-5200
VP IR
Peter.Ausnit@TiVo.com
Source: TiVo Corporation
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