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Thread: Cash burn

  1. #1
    Join Date
    Jul 2001
    Posts
    426

    Cash burn

    It's easy to see why tivo is loosing money...

    http://www.tvinsite.com/broadcasting...y=breakingNews

    TiVo takes in $51.8 million

    Broadcasting & Cable
    8/30/2001 12:20:00 PM

    Ailing digital video recorder TiVo has raised $51.8 million in a private sale of convertible bonds.
    The senior notes are due 2006 and carry a 7% interest rate. They’re convertible into common stock at $6.73 a share, In April the compan had $71.7 million in cash and investments but was burning cash at the rate of $17 million a month.

    The new money may not buy much. TiVo will give a better look when it posts earnings on Thursday, but in its last report the company said that its marketing spending came to a huge $514 per subscriber and that company-wide cash burn came to $1,400 per new customers.

    That, notably, is for a PVR buyer who, at best, pay $10 a month to subscriber to TV schedule data. - John M. Higgins

  2. #2
    Join Date
    Aug 2001
    Posts
    61
    Well, considering that TiVo never expected to make money until 2004 or so in their SEC filings... (I can find their filings at http;//www.sec.gov, but I'm at a loss to figure out what form is what)

  3. #3
    Join Date
    Jul 2001
    Posts
    426
    http://biz.yahoo.com/e/010914/tivo.html likes to MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

    This is a summary of Tivo's managment list of threats to company, and the real rate of cash loss. It's nice to see that no end user hacking is listed as a threat.

  4. #4
    Join Date
    Aug 2001
    Posts
    61
    A company with a clue, that's hard to come by these days.

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