"This significant improvement in our financial results demonstrates continued progress in our drive to profitability," said Mike Ramsay, CEO of TiVo. "Consumer demand for TiVo has never been stronger. And, our licensing and professional services business is taking off, demonstrating our technology leadership."
Revenues included approximately $8.2 million in recurring subscription revenues. Gross profit was a record $4.4 million, or 45% of revenues. Strong consumer demand, expanded retail channel drive better than expected subscriber growth. TiVo added approximately 42,000 new subscribers in the first quarter, exceeding guidance and consensus Wall Street estimates in what has typically been its slowest quarter of the year. As of April 30, 2002, the total subscriber base exceeded 422,000. TiVo's better-than-expected net subscriber growth was the result of higher consumer demand and the early launch of national retail distribution of the TiVo Series2 DVR. In addition, TiVo successfully implemented a monthly service fee increase in the quarter, while maintaining high customer satisfaction and continuing strong demand.
Licensing and professional services also played a strong role in the quarter. TiVo's new focus on licensing and professional services generated $7.2 million in cash in the quarter. Recent key accomplishments included new products from Sony, which shipped MyCast, a digital video recorder powered by TiVo, in the Japanese market. TiVo recognized $1.6 million in revenues from professional services related to its recently announced agreement to develop a next generation set-top box for DIRECTV, due later this year. In April, TiVo announced a multi-million dollar commercial agreement with AOL-Time Warner to deliver features of the AOL service on TiVo's Series2 DVR.