ALVISO, Calif. -- TiVo Inc. (NASDAQ:TIVO), the creator of and a leader in television services for digital video recorders (DVRs), today reported financial results for the quarter ended April 30, 2006.

Addressing the accomplishments so far this year, Tom Rogers, CEO of TiVo said, "This period was marked by a high degree of activity on all fronts. TiVo demonstrated its leadership position across the board, including intellectual property, interactive advertising, partnership distribution and alliances, digital device integration and broadband video distribution." Highlights are:

In terms of financial results, service and technology revenues for the quarter, which includes recognition of Comcast development revenue of $7.2 million, increased 38% to $55.1 million, compared to $40.0 million for the same period last year. Total subscriptions as of April 30, 2006, were slightly more than 4.4 million, which represents 33% growth in the subscription base during the past year.

For the quarter, TiVo reported a net loss of ($10.7) million and net loss per share of ($0.13), compared to a net loss of ($857,000), or ($0.01) per share, for the first quarter of last year, due primarily to the costs associated with litigation, more aggressive price offerings, and the expensing of stock options.

TiVo-Owned subscription gross additions were 91,000 for the quarter, compared to 104,000 in the first quarter of last year. This is the second sequential quarter showing a trend in which the percentage of new subscriptions compared to a year ago have improved (third quarter of last year was 23% below the prior year's third quarter; fourth quarter of last year was 20% below the prior year's fourth quarter; and the first quarter of this year was 13% below last year's first quarter). Standalone churn remained at 0.9% per month, resulting in a net gain of 51,000 in net new TiVo-Owned subscriptions. Separately, TiVo added a small number of new DIRECTV TiVo subscriptions, primarily subscribers using the TiVo high definition DVR product, currently DIRECTV's only HD DVR. However, churn on the DIRECTV TiVo subscription base was roughly equal to these new additions, leading to a net number of new subscriptions in the first quarter of 2,000.

Rogers continued, "We continue to see steady progress in many areas of our business strategy. We are making strides in both product innovations and marketing initiatives and are becoming an increasingly strong partner for advertisers. While we still have plenty of work to do, we saw improvements in service and technology revenue as well as our subscription base. Net income for the quarter was better than expected due in large part to a carefully managed spend of marketing and advertising dollars. We will continue to harness our resources until we have fully optimized our marketing thrust.

"On the sales and marketing front, the combination of our new pricing package and the roll-out of our new dual tuner product continued to drive online sales as an increased percentage of total sales. Online sales in the last few weeks of the quarter were even stronger than earlier in the quarter. Though it is still early on, we did see online sales grow as a percentage of our overall sales, and traffic to our main purchasing page of our website increased by more than 50%.

"We continue to develop innovative features that clearly differentiate TiVo from the many generic DVRs on the market. We are excited about the newly launched Guru Guide recommendations feature, which allows TiVo users to discover exciting programming and automatically record great collections of shows, recommended by editorial experts at some of the nation's most authoritative brands. We also recently announced an agreement that will enable broadband video published through Brightcove to be distributed directly to TiVo subscription set top boxes, harnessing the "Wild West" of web video and bringing it to the television set. Ultimately, we expect this will make it as easy to record, view and navigate these videos as any primetime television program.

"We have substantial momentum with advertisers as evidenced by our recently announced comprehensive advertising partnership with one of the world's largest advertising holding companies, Interpublic Media. Further, TiVo Product Watch provides a glimpse into what the future of television advertising will look like, enabling TV viewers to get commercial information about a product they are interested, when they want it, rather than through traditional TV advertising, where they have no control.

"Finally, our lawsuit victory against EchoStar was important for us as it recognizes that our intellectual property is valuable and provides further incentive for other companies to enter into commercial arrangements with TiVo in addition to the other benefits TiVo has to offer."

TiVo Inc. (Nasdaq: TIVO)