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 Margin |
40.7% |
30.7% |
10.0 |
|
Operating Margin |
(12.5%) |
(18.6%) |
6.1 |
|
Net Margin |
(10.9%) |
(16.8%) |
5.9 |
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% |
|
($6.4) |
($11.5) |
44.2% |
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap (in millions) |
Trailing P/E Ratio |
CAPS Rating | |
|---|---|---|---|
|
Cisco Systems (NASDAQ:CSCO) |
$170,178 |
22.3 |
***** |
|
Motorola (NYSE:MOT) |
$35,544 |
117.2 |
** |
|
Gemstar-TV Guide (NASDAQ:GMST) |
$2,377 |
11.5 |
**** |
|
TiVo |
$587 |
N/A |
** |
|
OpenTV (NASDAQ:OPTV) |
$161 |
N/A |
** |
Keep your partners close and the competition in your vest pocket.
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