By
Anders Bylund
|
More Articles
November 29, 2007
|
On Nov. 28, DVR pioneer TiVo (Nasdaq: TIVO ) released third-quarter 2008 earnings for the period ending Oct. 31.
- We've paused the earnings take, for your replaying enjoyment.
- TiVo is creeping toward positive profit and cash flow margins, inch by inch.
- The balance sheet looks neat and clean, with no debt and enough cash to cover another couple of quarters of cash burn.
- On the other hand, TiVo likes to sell more stock whenever the cash runs down into the $70 million range, and it's been about a year since the last infusion. In other words, don't be surprised to see some new dilution soon.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2008
|
Q3 2007
|
Change
|
|
Sales
|
$75.5
|
$66.0
|
14.4%
|
|
Net Profit
|
($8.2)
|
($11.1)
|
25.7%
|
|
EPS
|
($0.08)
|
($0.12)
|
33.3%
|
|
Diluted Shares
|
97.6
|
91.9
|
6.2%
|
Get back to basics with the income statement.
Margin Checkup
|
Q3 2008
|
Q3 2007
|
Change*
|
|
Gross
|
40.7%
|
30.7%
|
10.0
|
|
Operating
|
(12.5%)
|
(18.6%)
|
6.1
|
|
Net
|
(10.9%)
|
(16.8%)
|
5.9
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q3 2008
|
Q3 2007
|
Change
|
|
Cash + ST Invest.
|
$82.5
|
$107.0
|
(22.9%)
|
|
Accounts Rec.
|
$25.9
|
$27.3
|
(5.2%)
|
|
Inventory
|
$22.5
|
$34.1
|
(34.1%)
|
|
Liabilities
|
Q3 2008
|
Q3 2007
|
Change
|
|
Accounts Payable
|
$25.4
|
$28.3
|
(10.4%)
|
|
Long-Term Debt
|
$0.0
|
$0.0
|
N/A
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q3 2008
|
Q3 2007
|
Change
|
|
Cash From Ops.
|
($14.6)
|
($22.4)
|
34.8%
|
|
Capital Expenditures
|
$2.2
|
$2.7
|
(15.6%)
|
|
Free Cash Flow
|
($16.9)
|
($25.1)
|
32.8%
|
|
Owner Earnings
|
($6.4)
|
($11.5)
|
44.2%
|
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap (in millions)
|
Trailing
|
CAPS Rating
|
|
Cisco Systems (NASDAQ:CSCO)
|
$170,178
|
22.3
|
*****
|
|
Motorola (:MOT)
|
$35,544
|
117.2
|
**
|
|
Gemstar-TV Guide (NASDAQ:GMST)
|
$2,377
|
11.5
|
****
|
|
TiVo
|
$587
|
N/A
|
**
|
|
OpenTV (NASDAQ:OPTV)
|
$161
|
N/A
|
**
|
Using the latest reported numbers from Capital IQ.
Keep your partners close and the competition in your vest pocket.
Related Foolishness:
RSS Headlines
Fool UK