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TiVo Raises Subscriber Forecasts

August 21, 2003

SAN JOSE, Calif. (AP) _ TiVo Inc., the maker of digital television recorders, late Thursday reported a much narrower second-quarter loss than Wall Street expected and raised its outlook for subscriber additions for the year.

The Alviso, Calif., company said the loss for the quarter ended July 31, was $4.4 million, or 7 cents a share, compared with a loss of $3 million, or 6 cents a share, last year.

Last year’s loss included licensing and professional services revenue from Sony Corp. Excluding this item, the loss was $10.5 million, or 28 cents a share.

Analysts had expected a loss of 13 cents a share for the latest quarter, according to Thomson First Call.

Total revenue fell to $24.7 million from $35 million last year, as a 75 percent decrease in technology revenue and a 27 percent decline in hardware sales offset a 45 percent increase in service revenue.

Excluding Sony licensing and professional services revenue, last year’s second-quarter revenue totaled $23.2 million.

TiVo said it added 90,000 subscriptions in the second quarter, twice the number it added last year, for a total of 793,000 subscribers.

The company now expects to add 550,000 to 650,000 new subscriptions in 2004, compared with its previous estimate of 450,000 to 600,000.

The company reported its earnings after the close of the Nasdaq Stock Market, which saw its shares at $9.73, up 78 cents, or 8.7 percent. In 6 p.m. extended trading, the shares were up a further $1.29, or 13 percent, at $10.99.

TiVo also narrowed its full-year loss forecast, predicting a loss of $27 million to $35 million and service and technology revenue of $65 million to $70 million.

The company had previously anticipated a fiscal 2004 loss of $27 million to $38 million on revenue of $62 million to $70 million.

TiVo projects a third-quarter loss of $9 million to $11 million on revenue of $16.5 million to $17.5 million.

Analysts expect a loss of 51 cents a share for the year and 13 cents a share for the third quarter, according to First Call.

TiVo’s recorders, which have a small but enthusiastic following, can record shows automatically and pause live TV.

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