Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Oct. 31, 2013 | Nov. 15, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Oct-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'TIVO | ' |
Entity Registrant Name | 'TIVO INC | ' |
Entity Central Index Key | '0001088825 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 121,941,404 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $196,259 | $157,104 |
Short-term investments | 831,607 | 470,136 |
Accounts receivable, net of allowance for doubtful accounts of $425 and $362, respectively | 37,938 | 40,102 |
Inventories | 18,514 | 14,500 |
Deferred cost of technology revenues, current | 7,839 | 14,713 |
Deferred tax asset, current | 92,178 | 0 |
Prepaid expenses and other, current | 14,630 | 9,168 |
Total current assets | 1,198,965 | 705,723 |
LONG-TERM ASSETS | ' | ' |
Property and equipment, net of accumulated depreciation of $51,599 and $51,012, respectively | 11,379 | 10,300 |
Developed technology and intangible assets, net of accumulated amortization of $24,949 and $21,323, respectively | 12,460 | 16,086 |
Deferred cost of technology revenues, long-term | 21,655 | 16,011 |
Deferred tax asset, long-term | 79,586 | 0 |
Goodwill | 12,266 | 12,266 |
Prepaid expenses and other, long-term | 2,602 | 3,267 |
Total long-term assets | 139,948 | 57,930 |
Total assets | 1,338,913 | 763,653 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 33,278 | 24,492 |
Accrued liabilities | 47,100 | 50,043 |
Deferred revenue, current | 172,036 | 103,505 |
Total current liabilities | 252,414 | 178,040 |
LONG-TERM LIABILITIES | ' | ' |
Deferred revenue, long-term | 357,869 | 71,823 |
Convertible senior notes | 172,500 | 172,500 |
Deferred rent and other long-term liabilities | 405 | 526 |
Total long-term liabilities | 530,774 | 244,849 |
Total liabilities | 783,188 | 422,889 |
COMMITMENTS AND CONTINGENCIES (see Note 6) | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, par value $0.001: Authorized shares are 10,000,000; Issued and outstanding shares - none | 0 | 0 |
Common stock, par value $0.001: Authorized shares are 275,000,000; Issued shares are 134,192,051 and 129,545,267, respectively, and outstanding shares are 121,929,986 and 125,622,357, respectively | 134 | 129 |
Treasury stock, at cost: 12,262,065 shares and 3,922,910 shares, respectively | -133,090 | -37,791 |
Additional paid-in capital | 1,099,459 | 1,060,532 |
Accumulated deficit | -411,222 | -682,328 |
Accumulated other comprehensive income | 444 | 222 |
Total stockholders’ equity | 555,725 | 340,764 |
Total liabilities and stockholders’ equity | $1,338,913 | $763,653 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $425 | $362 |
Property and equipment, accumulated depreciation | 51,599 | 51,012 |
Purchased technology, capitalized software, and intangible assets, accumulated amortization | $24,949 | $21,323 |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred Stock, issued shares | 0 | 0 |
Preferred Stock, outstanding shares | 0 | 0 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, authorized shares | 275,000,000 | 275,000,000 |
Common Stock, issued shares | 134,192,051 | 129,545,267 |
Common Stock, outstanding shares | 121,929,986 | 125,622,357 |
Treasury Stock, shares | 12,262,065 | 3,922,910 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Revenues | ' | ' | ' | ' |
Service revenues | $33,526 | $35,228 | $102,518 | $98,151 |
Technology revenues | 48,133 | 25,727 | 117,914 | 71,439 |
Hardware revenues | 35,597 | 21,072 | 79,487 | 45,462 |
Net revenues | 117,256 | 82,027 | 299,919 | 215,052 |
Cost of revenues | ' | ' | ' | ' |
Cost of service revenues | 11,233 | 11,238 | 33,446 | 28,488 |
Cost of technology revenues | 5,612 | 5,779 | 21,190 | 15,857 |
Cost of hardware revenues | 33,017 | 23,434 | 73,470 | 56,336 |
Total cost of revenues | 49,862 | 40,451 | 128,106 | 100,681 |
Gross margin | 67,394 | 41,576 | 171,813 | 114,371 |
Research and development | 27,242 | 28,277 | 80,009 | 88,489 |
Sales and marketing | 10,189 | 7,958 | 27,765 | 21,425 |
Sales and marketing, subscription acquisition costs | 2,628 | 1,560 | 6,483 | 5,189 |
General and administrative | 15,839 | 21,772 | 60,850 | 63,367 |
Litigation proceeds | 0 | -78,441 | -108,102 | -78,441 |
Total operating (income) expenses | 55,898 | -18,874 | 67,005 | 100,029 |
Income from operations | 11,496 | 60,450 | 104,808 | 14,342 |
Interest income | 1,133 | 1,383 | 3,455 | 3,143 |
Interest expense and other expense, net | 2,165 | 1,958 | 6,104 | 5,906 |
Income before income taxes | 10,464 | 59,875 | 102,159 | 11,579 |
Benefit (provision) for income taxes | 2,023 | -848 | 168,947 | -1,067 |
Net income | 12,487 | 59,027 | 271,106 | 10,512 |
Net income per common share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.11 | $0.49 | $2.28 | $0.09 |
Diluted (in dollars per share) | $0.10 | $0.44 | $1.98 | $0.09 |
Income for purposes of computing net income per share: | ' | ' | ' | ' |
Basic | 12,487 | 59,027 | 271,106 | 10,512 |
Diluted | $13,739 | $60,992 | $274,863 | $10,512 |
Weighted average common and common equivalent shares: | ' | ' | ' | ' |
Basic (in shares) | 116,760,061 | 119,363,613 | 118,913,986 | 119,149,010 |
Diluted (in shares) | 136,736,001 | 138,587,931 | 139,124,386 | 123,353,443 |
CONDENSED_CONSOLIDATED_COMPREH
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ' | ' | ' |
Net income | $12,487 | $59,027 | $271,106 | $10,512 |
Available-for-sale securities: | ' | ' | ' | ' |
Unrealized gain on marketable securities | 366 | 30 | 222 | 164 |
Total comprehensive income | $12,853 | $59,057 | $271,328 | $10,676 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $271,106 | $10,512 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of property and equipment and intangibles | 7,778 | 6,622 |
Stock-based compensation expense | 27,453 | 25,163 |
Amortization of discounts and premiums on investments | 5,591 | 4,097 |
Deferred income taxes | -171,764 | 0 |
Amortization of deferred debt issuance costs | 721 | 721 |
Excess tax benefits from employee stock-based compensation | -515 | 0 |
Allowance for doubtful accounts | 199 | 196 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 1,965 | -3,124 |
Inventories | -4,014 | 1,545 |
Deferred cost of technology revenues | 1,499 | -1,916 |
Prepaid expenses and other | -3,049 | -1,947 |
Accounts payable | 8,961 | -6,377 |
Accrued liabilities | -2,307 | -3,619 |
Deferred revenue | 354,577 | 20,122 |
Deferred rent and other long-term liabilities | -121 | 21 |
Net cash provided by operating activities | 498,080 | 52,016 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchases of short-term investments | -747,404 | -429,262 |
Sales or maturities of short-term investments | 378,095 | 427,925 |
Acquisition of business, net of cash and cash equivalents acquired | 0 | -24,481 |
Acquisition of property and equipment | -5,406 | -4,594 |
Acquisition of capitalized software and intangibles | 0 | -95 |
Net cash used in investing activities | -374,715 | -30,507 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of common stock related to exercise of common stock options | 6,783 | 5,788 |
Proceeds from issuance of common stock related to employee stock purchase plan | 3,791 | 3,741 |
Excess tax benefits from employee stock-based compensation | 515 | 0 |
Treasury stock - repurchase of stock | -95,299 | -23,127 |
Net cash used in financing activities | -84,210 | -13,598 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 39,155 | 7,911 |
CASH AND CASH EQUIVALENTS: | ' | ' |
Balance at beginning of period | 157,104 | 169,555 |
Balance at end of period | $196,259 | $177,466 |
NATURE_OF_OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Oct. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NATURE OF OPERATIONS | ' |
NATURE OF OPERATIONS | |
TiVo Inc. (together with its subsidiaries the "Company” or “TiVo”) was incorporated in August 1997 as a Delaware corporation and is located in San Jose, California. The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment. | |
The Company is subject to a number of risks, including delays in product and service developments; competitive product and service offerings; lack of market acceptance; uncertainty of future profitability; the dependence on third parties for manufacturing, marketing, and sales support, as well as third-party rollout schedules, software development issues for third-party products which contain its technology; access to television programming including digital cable signals in connection with CableCARD and switched digital Internet Protocol, downloadable conditional access, and other new signal delivery and encryption technologies; dependence on its relationships with third-party service providers for subscription growth; and the Company’s ability to sustain and grow both its TiVo-Owned and MSO subscription base. The Company anticipates that its retail business will continue to be seasonal and expects to generate a significant portion of its new subscriptions during and immediately after the holiday shopping season. The Company remains cautious about its ability to grow or even slow the decline in its TiVo-Owned subscription base. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Oct. 31, 2013 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited interim condensed consolidated financial statements do not contain all of the information and footnotes required by generally accepted accounting principles for complete audited annual financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of October 31, 2013 and January 31, 2013 and the results of operations and the statement of other comprehensive income for the three and nine months ended October 31, 2013 and 2012 and condensed consolidated statements of cash flows for the nine month periods ended October 31, 2013 and 2012. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements, including the notes thereto, included in the Company’s annual report on Form 10-K for the fiscal year ended January 31, 2013. Operating results for the three and nine month periods ended October 31, 2013 are not necessarily indicative of results that may be expected for this fiscal year ending January 31, 2014 or any other periods. | |
Deferred Tax Assets | |
We make certain estimates in determining income tax expense for financial statement purposes. These estimates occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. From time-to-time, we evaluate the expected realization of our deferred tax assets and determine whether a valuation allowance needs to be established or released. In determining the need for and amount of our valuation allowance, we assess the likelihood that we will be able to recover our deferred tax assets using historical levels of income and estimates of future income. Our estimates of future income include our internal projections and various internal estimates and certain external sources which we believe to be reasonable but that are unpredictable and inherently uncertain. We also consider the jurisdictional mix of income and loss, changes in tax regulations in the period the changes are enacted and the type of deferred tax assets and liabilities. In assessing whether a valuation allowance needs to be established or released, we use judgment in considering the cumulative effect of negative and positive evidence and the weight given to the potential effect of the evidence. Recent historical income or loss and future projected operational results have the most influence on our determinations of whether a deferred tax valuation allowance is required or not. | |
Our other critical accounting policies or in the matters for which we make critical accounting estimates in the preparation of our condensed consolidated financial statements are set out under the heading "Critical Accounting Estimates" in our Annual Report on Form 10-K for the fiscal year ended January 31, 2013. | |
Recent Accounting Pronouncements | |
In June 2013, the Financial Accounting Standards Board ratified Emerging Issues Task Force (EITF) Issue 13-C, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” which concludes an unrecognized tax benefit should be presented as a reduction of a deferred tax asset when settlement in this manner is available under the tax law. The Company will adopt this amendment as of the fiscal quarter ending April 30, 2014. The Company does not believe that the impact of adopting this amendment will be significant on the Company's results of operations and financial condition. |
CASH_AND_INVESTMENTS
CASH AND INVESTMENTS | 9 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Investments and Cash [Abstract] | ' | ||||||||||||
CASH AND INVESTMENTS | ' | ||||||||||||
CASH AND INVESTMENTS | |||||||||||||
Cash, cash equivalents, and short-term investments, consisted of the following: | |||||||||||||
As of | |||||||||||||
October 31, 2013 | January 31, 2013 | ||||||||||||
(in thousands) | |||||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 29,079 | $ | 20,005 | |||||||||
Cash equivalents: | |||||||||||||
Commercial paper | 77,543 | 99,040 | |||||||||||
Certificates of deposit | — | 2,024 | |||||||||||
Money market funds | 86,187 | 36,035 | |||||||||||
Corporate debt securities | 450 | — | |||||||||||
Municipal bonds | 3,000 | — | |||||||||||
Total cash and cash equivalents | $ | 196,259 | $ | 157,104 | |||||||||
Marketable securities: | |||||||||||||
Certificates of deposit | 13,800 | 27,961 | |||||||||||
Commercial paper | 179,359 | 128,023 | |||||||||||
Corporate debt securities | 549,004 | 193,932 | |||||||||||
U.S. agency securities | 20,013 | 37,109 | |||||||||||
U.S. Treasury securities | 20,084 | 40,286 | |||||||||||
Foreign government securities | 9,092 | 9,555 | |||||||||||
Variable-rate demand notes | 350 | 410 | |||||||||||
Asset and mortgage-backed securities | 35,018 | 16,816 | |||||||||||
Municipal bonds | 4,887 | 16,044 | |||||||||||
Current marketable debt securities | 831,607 | 470,136 | |||||||||||
Other investment securities: | |||||||||||||
Other investment securities - cost method | $ | 250 | $ | 250 | |||||||||
Total other investment securities | $ | 250 | $ | 250 | |||||||||
Total cash, cash equivalents, marketable securities, and other investment securities | $ | 1,028,116 | $ | 627,490 | |||||||||
Marketable Securities | |||||||||||||
The Company’s investment securities portfolio consists of various debt instruments, including corporate and government bonds, asset and mortgage-backed securities, foreign government securities, government securities, and municipal bonds, all of which are classified as available-for-sale. | |||||||||||||
Other investment securities | |||||||||||||
TiVo has an investment in a private company where the Company’s ownership is less than 20% and TiVo does not have significant influence. The investment is accounted for under the cost method and is periodically assessed for other-than-temporary impairment. Refer to Note 4 "Fair Value" for additional information on the impairment assessment of the investment. | |||||||||||||
Contractual Maturity Date | |||||||||||||
The following table summarizes the estimated fair value of the Company’s debt investments, designated as available-for-sale, classified by the contractual maturity date of the security: | |||||||||||||
As of | |||||||||||||
October 31, 2013 | January 31, 2013 | ||||||||||||
(in thousands) | |||||||||||||
Due within 1 year | $ | 671,307 | $ | 365,386 | |||||||||
Due within 1 year through 5 years | 159,950 | 104,340 | |||||||||||
Due within 5 years through 10 years | — | — | |||||||||||
Due after 10 years | 350 | 410 | |||||||||||
Total | $ | 831,607 | $ | 470,136 | |||||||||
Unrealized Gains (Losses) on Marketable Investment Securities | |||||||||||||
The following tables summarize unrealized gains and losses related to the Company’s investments in marketable securities designated as available-for-sale: | |||||||||||||
As of October 31, 2013 | |||||||||||||
Adjusted | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||
Gains | Losses | ||||||||||||
(in thousands) | |||||||||||||
Certificates of deposit | $ | 13,800 | $ | — | $ | — | $ | 13,800 | |||||
Commercial paper | 179,280 | 80 | (1 | ) | 179,359 | ||||||||
Corporate debt securities | 548,667 | 427 | (90 | ) | 549,004 | ||||||||
U.S. agency securities | 20,004 | 9 | — | 20,013 | |||||||||
U.S. Treasury securities | 20,074 | 10 | — | 20,084 | |||||||||
Foreign government securities | 9,094 | — | (2 | ) | 9,092 | ||||||||
Variable-rate demand notes | 350 | — | — | 350 | |||||||||
Asset and mortgage-backed securities | 35,028 | 3 | (13 | ) | 35,018 | ||||||||
Municipal bonds | 4,875 | 12 | — | 4,887 | |||||||||
Total | $ | 831,172 | $ | 541 | $ | (106 | ) | $ | 831,607 | ||||
As of January 31, 2013 | |||||||||||||
Adjusted | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||
Gains | Losses | ||||||||||||
(in thousands) | |||||||||||||
Certificates of deposit | $ | 27,961 | $ | — | $ | — | $ | 27,961 | |||||
Commercial paper | 127,967 | 65 | (9 | ) | 128,023 | ||||||||
Corporate debt securities | 193,834 | 147 | (49 | ) | 193,932 | ||||||||
U.S. agency securities | 37,081 | 28 | — | 37,109 | |||||||||
U.S. Treasury securities | 40,266 | 20 | — | 40,286 | |||||||||
Foreign government securities | 9,573 | — | (18 | ) | 9,555 | ||||||||
Variable-rate demand notes | 410 | — | — | 410 | |||||||||
Asset and mortgage-backed securities | 16,804 | 12 | — | 16,816 | |||||||||
Municipal bonds | 16,025 | 19 | — | 16,044 | |||||||||
Total | $ | 469,921 | $ | 291 | $ | (76 | ) | $ | 470,136 | ||||
None of these investments were in a loss position for greater than twelve months as of October 31, 2013 and January 31, 2013. |
FAIR_VALUE
FAIR VALUE | 9 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
FAIR VALUE | ' | ||||||||||||
FAIR VALUE | |||||||||||||
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect TiVo's market assumptions. These two types of inputs have created the following fair-value hierarchy: | |||||||||||||
Level 1 - Quoted prices for identical instruments in active markets; | |||||||||||||
Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |||||||||||||
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||
This hierarchy requires TiVo to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. TiVo recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. | |||||||||||||
Cash equivalents and available-for-sale marketable securities (including asset- and mortgage-backed securities) are reported at their fair value. Additionally, carrying amounts of certain of the Company’s financial instruments including accounts receivable, accounts payable, and accrued expenses approximate their fair value because of their short maturities. The Company has financial liabilities for which it is obligated to repay the carry value, unless the holder agrees to a lesser amount. These financial liabilities include TiVo's convertible debt. The fair values of TiVo's convertible debt are influenced by interest rates, TiVo's stock price and stock price volatility and are determined by Level 2 inputs, including prices for the convertible debt observed in market trading. The carrying value of these financial liabilities at October 31, 2013 and January 31, 2013 was $172.5 million (for both periods) and the fair value was $238.1 million and $241.6 million, based on the bonds' quoted market price as of October 31, 2013 and January 31, 2013, respectively. | |||||||||||||
On a quarterly basis, TiVo measures at fair value certain financial assets and liabilities. The fair value of those financial assets and liabilities was determined using the following levels of inputs as of October 31, 2013 and January 31, 2013: | |||||||||||||
As of October 31, 2013 | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(in thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Commercial paper | $ | 77,543 | $ | — | $ | 77,543 | $ | — | |||||
Money market funds | 86,187 | 86,187 | — | — | |||||||||
Corporate debt securities | 450 | — | 450 | — | |||||||||
Municipal bonds | 3,000 | — | 3,000 | — | |||||||||
Short-term investments: | |||||||||||||
Certificates of deposit | 13,800 | 13,800 | — | — | |||||||||
Commercial paper | 179,359 | — | 179,359 | — | |||||||||
Corporate debt securities | 549,004 | — | 549,004 | — | |||||||||
U.S. agency securities | 20,013 | — | 20,013 | — | |||||||||
U.S. Treasury securities | 20,084 | 20,084 | — | — | |||||||||
Foreign government securities | 9,092 | — | 9,092 | — | |||||||||
Variable-rate demand notes | 350 | — | 350 | — | |||||||||
Asset- and mortgage-backed securities | 35,018 | — | 35,018 | — | |||||||||
Municipal bonds | 4,887 | — | 4,887 | — | |||||||||
Total | $ | 998,787 | $ | 120,071 | $ | 878,716 | $ | — | |||||
As of January 31, 2013 | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(in thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Commercial paper | $ | 99,040 | $ | — | $ | 99,040 | $ | — | |||||
Certificate of deposit | 2,024 | 2,024 | — | — | |||||||||
Money market funds | 36,035 | 36,035 | — | — | |||||||||
Short-term investments: | |||||||||||||
Certificates of deposit | 27,961 | 27,961 | — | — | |||||||||
Commercial paper | 128,023 | — | 128,023 | — | |||||||||
Corporate debt securities | 193,932 | — | 193,932 | — | |||||||||
U.S. agency securities | 37,109 | — | 37,109 | — | |||||||||
U.S. Treasury securities | 40,286 | 40,286 | — | — | |||||||||
Foreign government securities | 9,555 | — | 9,555 | — | |||||||||
Variable-rate demand notes | 410 | — | 410 | — | |||||||||
Asset- and mortgage-backed securities | 16,816 | — | 16,816 | — | |||||||||
Municipal bonds | 16,044 | — | 16,044 | — | |||||||||
Total | $ | 607,235 | $ | 106,306 | $ | 500,929 | $ | — | |||||
Level 1 Measurements | |||||||||||||
TiVo's cash equivalents held in money market funds, TiVo's available-for-sale securities and the trading securities are measured at fair value using Level 1 inputs. | |||||||||||||
Level 2 Measurements | |||||||||||||
The Company uses inputs such as broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets and liabilities. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is ultimately responsible for the financial statements and underlying estimates. | |||||||||||||
Level 3 Measurements | |||||||||||||
As of October 31, 2013, TiVo had no Level 3 instruments. | |||||||||||||
The Company did not have any transfers between Level 1, Level 2, and Level 3 fair value measurements during the periods presented as there were no changes in the composition of Level 1, 2, or 3 securities. | |||||||||||||
TiVo also has a direct investment in a privately-held company accounted for under the cost method, which is periodically assessed for other-than-temporary impairment. If the Company determines that an other-than-temporary impairment has occurred, TiVo will write-down the investment to its fair value. The fair value of a cost method investment is not evaluated if there are no identified events or changes in circumstances that may have asignificant adverse effect on the fair value of the investment. However, if such a significant adverse events were identified, the Company would estimate the fair value of its cost method investment considering available information at the time of the event, such as pricing in recent rounds of financing, current cash position, earnings and cash flow forecasts, recent operational performance, and any other readily available data. The carrying amount of the Company's cost method investment was $250,000 as of October 31, 2013. No events or circumstances indicating a potential impairment were identified as of October 31, 2013. |
INVENTORY
INVENTORY | 9 Months Ended | ||
Oct. 31, 2013 | |||
Inventory Disclosure [Abstract] | ' | ||
INVENTORY | ' | ||
INVENTORY | |||
Inventory was as follows: | |||
As of | |||
October 31, 2013 | January 31, 2013 | ||
( in thousands) | |||
Finished Goods | $16,863 | $11,077 | |
Raw Materials | $1,651 | $3,423 | |
Total Inventory | $18,514 | $14,500 |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Oct. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
Product Warranties | |
The Company’s standard manufacturer's warranty period to consumers for TiVo-enabled DVRs is 90 days for parts and labor from the date of consumer purchase, and from 91-365 days for parts only. Within the limited warranty period, consumers are offered a no-charge exchange for TiVo-enabled DVRs returned due to product defect, within 90 days from the date of consumer purchase. Thereafter, consumers may exchange a TiVo-enabled DVR with a product defect for a charge. As of October 31, 2013 and January 31, 2013, the accrued warranty reserve was $534,000 and $419,000, respectively. The Company’s accrued warranty reserve is included in accrued liabilities in the accompanying condensed consolidated balance sheets. | |
The Company also offers its TiVo-Owned customers separately priced optional 2-year and 3-year extended warranties. The Company defers and amortizes cost and revenue associated with the sales of these extended warranties over the warranty period or until a warranty is redeemed. Additionally the Company offers its MSO customers separately priced optional 3-year extended warranties. The Company defers the revenues associated with sale of these extended warranties over the second and third year of the warranty period. As of October 31, 2013, the extended warranty deferred revenue and cost was $1,898,000 and $258,000, respectively. As of January 31, 2013, the extended warranty deferred revenue and cost was $875,000 and $269,000, respectively. | |
Indemnification Arrangements | |
The Company undertakes indemnification obligations in its ordinary course of business. For instance, the Company has undertaken to indemnify its underwriters and certain investors in connection with the issuance and sale of its securities and the Company provides indemnification for its directors and officers in accordance with Delaware law. The Company has also undertaken to indemnify certain customers and business partners for, among other things, the licensing of its products, the sale of its DVRs, and the provision of engineering and consulting services. Pursuant to these agreements, the Company may indemnify the other party for certain losses suffered or incurred by the indemnified party in connection with various types of claims, which may include, without limitation, intellectual property infringement, advertising and consumer disclosure laws, certain tax liabilities, negligence and intentional acts in the performance of services and violations of laws, including certain violations of securities laws with respect to underwriters and investors. The term of these indemnification obligations is generally perpetual. The Company’s obligation to provide indemnification under its agreements with customer and business partners would arise in the event that a third party filed a claim against one of the parties that was covered by the Company’s indemnification obligation. As an example, if a third party sued a customer for intellectual property infringement and the Company agreed to indemnify that customer against such claims, its obligation would be triggered. | |
The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include but are not limited to: the nature of the claim asserted; the relative merits of the claim; the financial ability of the party suing the indemnified party to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party; and the willingness of such party to engage in settlement negotiations. Due to the nature of the Company’s potential indemnity liability, its indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue operation in the ordinary course of business. | |
Under certain circumstances, the Company may have recourse through its insurance policies that would enable it to recover from its insurance company some or all amounts paid pursuant to its indemnification obligations. The Company does not have any assets held either as collateral or by third parties that, upon the occurrence of an event requiring it to indemnify a customer, the Company could obtain and liquidate to recover all or a portion of the amounts paid pursuant to its indemnification obligations. | |
Legal Matters | |
Intellectual Property Litigation. | |
On October 6, 2011, Digital CBT filed a complaint against TiVo in the District of Delaware (“First Action”) alleging infringement of U.S. Patent No. 5,805,173 ("System and Method for Capturing and Transferring Selected Portions of a Video Stream in a Computer System"). Digital CBT sought an injunction and unspecified damages. On March 22, 2012, Digital CBT dismissed the Delaware complaint and filed a substantially identical complaint in the Central District of California (“Second Action”). On July 18, 2012, Digital CBT informed the Company of a potential standing issue with the March 22, 2012 complaint because it appeared that Digital CBT did not have the necessary rights to assert infringement of the '173 patent against the Company. On July 24, 2012, the Company filed a complaint against Digital CBT in the Northern District of California (“Third Action”) requesting declaratory judgment that U.S. Patent No. 5,805,173 ("System and Method for Capturing and Transferring Selected Portions of a Video Stream in a Computer System") is invalid and not infringed. On July 26, 2012, Digital CBT claimed to have corrected its standing problem and filed a complaint against TiVo (“Fourth Action”), substantially identical to its March 22, 2012 complaint against the Company, in the Central District of California. On July 30, 2012, Digital CBT filed a motion to dismiss its own Second Action, which TiVo did not oppose, and on August 29, 2012 the court dismissed the Second Action. On September 17, 2012, Digital CBT filed a motion to dismiss or alternatively to transfer the Third Action to the Central District of California. On October 29, 2012, the Court transferred the Third Action to the Central District of California, where the Fourth Action is pending and where Digital CBT has a case involving the same patent pending against AT&T. On October 31, 2012 TiVo filed its answer and counterclaims in the Fourth Action. On April 5, 2013, the United States District Court for the Central District of California Southern Division entered an order in the Digital CBT v. TiVo case scheduling, among other things, the completion of discovery by April 18, 2014 and jury trial to begin on July 29, 2014. The Company may incur material expenses in connection with these litigations and in the event there is an adverse outcome, the Company's business could be harmed. The Company has determined a potential loss is reasonably possible; however, based on its current knowledge, management does not believe that the amount of such possible loss or a range of potential loss is reasonably estimable. | |
From time to time, the Company is involved in numerous lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated. As of October 31, 2013, the Company has not accrued any pre-judgment liability for any lawsuits filed against the Company, as the Company has neither determined that it is probable that a liability has been incurred at the date of the financial statements nor that the amount of any loss can be reasonably estimated. The Company has accrued $4.5 million, including accrued interest, for arbitrations proceedings related to a contractual dispute. The Company is currently appealing an unfavorable decision in the initial arbitration proceeding. The Company expenses legal costs as they are incurred. |
NET_INCOME_PER_COMMON_SHARE
NET INCOME PER COMMON SHARE | 9 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
NET INCOME PER COMMON SHARE | ' | ||||||||||||
NET INCOME PER COMMON SHARE | |||||||||||||
Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, excluding unvested restricted stock. | |||||||||||||
Diluted net income per common share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options, stock awards, and performance stock awards and are calculated using the treasury stock method. Also included in the weighted average effect of dilutive securities is the diluted effect of the convertible senior notes which is calculated using the if-converted method. | |||||||||||||
The following table sets forth the computation of basic and diluted earnings per common share: | |||||||||||||
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(income in thousands) | |||||||||||||
Numerator: | |||||||||||||
Net income | $ | 12,487 | $ | 59,027 | $ | 271,106 | $ | 10,512 | |||||
Interest on dilutive notes, net of tax | 1,252 | 1,965 | 3,757 | — | |||||||||
Net income for purpose of computing net income per diluted share | 13,739 | 60,992 | 274,863 | 10,512 | |||||||||
Denominator: | |||||||||||||
Weighted average shares outstanding, excluding unvested restricted stock | 116,760,061 | 119,363,613 | 118,913,986 | 119,149,010 | |||||||||
Weighted average effect of dilutive securities: | |||||||||||||
Stock options, restricted stock, and employee stock purchase plan | 4,513,747 | 3,762,125 | 4,748,207 | 4,204,433 | |||||||||
Convertible senior notes | 15,462,193 | 15,462,193 | 15,462,193 | — | |||||||||
Denominator for diluted net income per common share | 136,736,001 | 138,587,931 | 139,124,386 | 123,353,443 | |||||||||
Basic net income per common share | $ | 0.11 | $ | 0.49 | $ | 2.28 | $ | 0.09 | |||||
Diluted net income per common share | $ | 0.1 | $ | 0.44 | $ | 1.98 | $ | 0.09 | |||||
The weighted average number of shares outstanding used in the computation of basic and diluted net income per share in the three and nine months ended October 31, 2013 and 2012 per share do not include the effect of the following potentially outstanding common shares because the effect would have been anti-dilutive: | |||||||||||||
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Unvested restricted stock | 7,391 | 2,258,460 | 2,491 | 1,839,690 | |||||||||
Options to purchase common stock | 627,104 | 1,689,019 | 713,097 | 1,676,379 | |||||||||
Potential shares to be issued from employee stock purchase plan | — | — | — | — | |||||||||
Convertible senior notes | — | — | — | 15,462,193 | |||||||||
Total | 634,495 | 3,947,479 | 715,588 | 18,978,262 | |||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||
STOCK-BASED COMPENSATION | |||||||||||||
Total stock-based compensation for the three and nine months ended October 31, 2013 and 2012 is as follows: | |||||||||||||
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Cost of service revenues | $ | 553 | $ | 357 | $ | 1,485 | $ | 919 | |||||
Cost of technology revenues | 329 | 563 | 1,284 | 1,181 | |||||||||
Cost of hardware revenues | 78 | 71 | 235 | 206 | |||||||||
Research and development | 3,581 | 2,991 | 10,001 | 9,584 | |||||||||
Sales and marketing | 1,525 | 1,187 | 4,134 | 2,971 | |||||||||
General and administrative | 3,777 | 3,849 | 10,314 | 10,302 | |||||||||
Change in capitalized deferred cost of technology revenues | 15 | 8 | 269 | 298 | |||||||||
Stock-based compensation before income taxes | $ | 9,858 | $ | 9,026 | $ | 27,722 | $ | 25,461 | |||||
Income tax benefit | (2,568 | ) | — | (7,034 | ) | — | |||||||
Total stock-based compensation | $ | 7,290 | $ | 9,026 | $ | 20,688 | $ | 25,461 | |||||
SETTLEMENTS
SETTLEMENTS | 9 Months Ended | |||
Oct. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
SETTLEMENTS | ' | |||
SETTLEMENTS | ||||
Effective July 2, 2013, TiVo entered into a settlement and patent license agreement (the “Settlement Agreement”) with ARRIS Group, Inc. (“Arris”) (owner of General Instrument Corporation, formerly a subsidiary of Motorola Mobility, Inc.), Cisco Systems, Inc. (“Cisco”), and Google Inc. (“Google”) (owner of Motorola Mobility, LLC formerly Motorola Mobility, Inc.), pursuant to which the parties agreed to settle and dismiss all outstanding litigation between them, including Time Warner Cable (as described in TiVo's periodic reports filed with the Securities and Exchange Commission ), provide licenses to certain patents between the parties, and release patent infringement claims between the parties with respect to all outstanding litigation in exchange for a payment of $490.0 million to TiVo by Google/Motorola Mobility and Cisco. | ||||
The licenses granted by TiVo to Cisco and Google/Motorola Mobility under U.S. Patent Nos. 6,233,389, 7,529,465, 6,792,195, and 7,493,015 (the “TiVo patents-in-suit”) and certain related patents are perpetual. The other licenses granted by TiVo to Google/Motorola Mobility and from Google/Motorola Mobility to TiVo will expire on July 31, 2018. The other licenses granted by TiVo to Cisco and from Cisco to TiVo will expire on July 2, 2023, when the agreement expires. | ||||
The agreement includes multiple elements consisting of: (i) an exchange of licenses to certain intellectual property, (ii) an interest income component related to the past infringement, and (iii) the settlement of all outstanding litigation and claims between TiVo and Arris, Google/Motorola Mobility and Cisco. The proceeds of the agreement were allocated amongst the principal elements of the transaction based on relative fair values of each element. | ||||
TiVo estimated the fair value of future licensing revenue from July 2, 2013 until July 31, 2018 using an income approach and future licensing revenue from August 1, 2018 to July 2, 2023 using a market approach. The significant inputs and assumptions used in the valuations included actual past and projected future estimated infringing DVR shipments, estimated life of the DVR, estimated market-based royalty rates, and estimated risk-adjusted discount rates, among others. The development of a number of these inputs and assumptions in the model requires a significant amount of management judgment and is based upon a number of factors. Changes in these assumptions may have a substantial impact on the fair value assigned to each element. These inputs and assumptions represent management's best estimates at the time of the transaction. | ||||
The total consideration of $490.0 million was allocated on a relative fair value basis as $381.1 million to the future licensing revenue element, $752,000 to interest income related to past infringement and $108.1 million to the past infringement and litigation settlement element. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the nine months ended October 31, 2013. The amount related to interest income was recorded under “Interest income” in the nine months ended October 31, 2013. $381.1 million of license royalties has been or will be recorded as technology revenues over the term of the agreement through July 2023. | ||||
Licensing revenues have been or are expected to be recognized as follows (in thousands): | ||||
Fiscal Year Ending January 31, | Technology Revenues | |||
2014 | $ | 42,692 | ||
2015 | 73,185 | |||
2016 | 73,185 | |||
2017 | 73,185 | |||
2018 | 73,185 | |||
2019 | 37,519 | |||
2020-2024 | 8,195 | |||
Total | $ | 381,146 | ||
On September 21, 2012, TiVo Inc. entered into a Settlement and Patent License Agreement with Verizon Communications, Inc. ("VZ"). Under the terms of the Agreement, VZ agreed to pay TiVo a minimum amount of $250.4 million plus incremental monthly fees per DVR subscriber if VZ's subscriber base exceeds certain pre-determined levels which increase annually. | ||||
The total consideration of $250.4 million was allocated on a relative fair value basis as $78.4 million to the past infringement and litigation settlement element, $568,000 to interest income related to past infringement and $171.4 million to the base license royalties element that has been or will be recognized in the future. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the three and nine months ended October 31, 2012. The amount related to interest income was recorded under “Interest income” in the three and nine months ended October 31, 2012. |
INCOME_TAX
INCOME TAX | 9 Months Ended |
Oct. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAX | ' |
INCOME TAX | |
The Company recorded income tax benefit for the three and nine months ended October 31, 2013 of ($2.0) million and ($168.9) million, respectively. | |
The Company had a deferred tax asset of $220.5 million as of January 31, 2013, which has been previously reduced by a full valuation allowance. After evaluating positive and negative evidence available as of October 31, 2013, the Company has determined that it is more likely than not that it will realize its deferred tax assets for federal tax purposes and all state taxes except for the state of California. The Company now has three years of cumulative income and is also forecasting future taxable income due primarily to the settlement agreements (described in Note 9 "Settlements" above) entered into during the nine months ended October 31, 2013. | |
As a result, the Company has recognized a net deferred tax asset of approximately $171.8 million on its condensed consolidated balance sheet as of October 31, 2013. | |
The Company continues to conclude that it does not meet the more likely than not criteria for its California deferred tax assets as of October 31, 2013 because the income attributable to California is not expected to be sufficient to realize these deferred tax assets. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Oct. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited interim condensed consolidated financial statements do not contain all of the information and footnotes required by generally accepted accounting principles for complete audited annual financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of October 31, 2013 and January 31, 2013 and the results of operations and the statement of other comprehensive income for the three and nine months ended October 31, 2013 and 2012 and condensed consolidated statements of cash flows for the nine month periods ended October 31, 2013 and 2012. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements, including the notes thereto, included in the Company’s annual report on Form 10-K for the fiscal year ended January 31, 2013. Operating results for the three and nine month periods ended October 31, 2013 are not necessarily indicative of results that may be expected for this fiscal year ending January 31, 2014 or any other periods. | |
Deferred Tax Assets | ' |
Deferred Tax Assets | |
We make certain estimates in determining income tax expense for financial statement purposes. These estimates occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. From time-to-time, we evaluate the expected realization of our deferred tax assets and determine whether a valuation allowance needs to be established or released. In determining the need for and amount of our valuation allowance, we assess the likelihood that we will be able to recover our deferred tax assets using historical levels of income and estimates of future income. Our estimates of future income include our internal projections and various internal estimates and certain external sources which we believe to be reasonable but that are unpredictable and inherently uncertain. We also consider the jurisdictional mix of income and loss, changes in tax regulations in the period the changes are enacted and the type of deferred tax assets and liabilities. In assessing whether a valuation allowance needs to be established or released, we use judgment in considering the cumulative effect of negative and positive evidence and the weight given to the potential effect of the evidence. Recent historical income or loss and future projected operational results have the most influence on our determinations of whether a deferred tax valuation allowance is required or not. | |
Our other critical accounting policies or in the matters for which we make critical accounting estimates in the preparation of our condensed consolidated financial statements are set out under the heading "Critical Accounting Estimates" in our Annual Report on Form 10-K for the fiscal year ended January 31, 2013. | |
Recent Accounting Pronoucements | ' |
Recent Accounting Pronouncements | |
In June 2013, the Financial Accounting Standards Board ratified Emerging Issues Task Force (EITF) Issue 13-C, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” which concludes an unrecognized tax benefit should be presented as a reduction of a deferred tax asset when settlement in this manner is available under the tax law. The Company will adopt this amendment as of the fiscal quarter ending April 30, 2014. The Company does not believe that the impact of adopting this amendment will be significant on the Company's results of operations and financial condition. |
CASH_AND_INVESTMENTS_Policies
CASH AND INVESTMENTS (Policies) | 9 Months Ended |
Oct. 31, 2013 | |
Investments and Cash [Abstract] | ' |
Marketable Securities | ' |
Marketable Securities | |
The Company’s investment securities portfolio consists of various debt instruments, including corporate and government bonds, asset and mortgage-backed securities, foreign government securities, government securities, and municipal bonds, all of which are classified as available-for-sale. | |
Cost Method Investments | ' |
Other investment securities | |
TiVo has an investment in a private company where the Company’s ownership is less than 20% and TiVo does not have significant influence. The investment is accounted for under the cost method and is periodically assessed for other-than-temporary impairment. Refer to Note 4 "Fair Value" for additional information on the impairment assessment of the investment. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Policies) | 9 Months Ended |
Oct. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Product Warranties | ' |
Product Warranties | |
The Company’s standard manufacturer's warranty period to consumers for TiVo-enabled DVRs is 90 days for parts and labor from the date of consumer purchase, and from 91-365 days for parts only. Within the limited warranty period, consumers are offered a no-charge exchange for TiVo-enabled DVRs returned due to product defect, within 90 days from the date of consumer purchase. Thereafter, consumers may exchange a TiVo-enabled DVR with a product defect for a charge. As of October 31, 2013 and January 31, 2013, the accrued warranty reserve was $534,000 and $419,000, respectively. The Company’s accrued warranty reserve is included in accrued liabilities in the accompanying condensed consolidated balance sheets. | |
The Company also offers its TiVo-Owned customers separately priced optional 2-year and 3-year extended warranties. The Company defers and amortizes cost and revenue associated with the sales of these extended warranties over the warranty period or until a warranty is redeemed. Additionally the Company offers its MSO customers separately priced optional 3-year extended warranties. The Company defers the revenues associated with sale of these extended warranties over the second and third year of the warranty period. As of October 31, 2013, the extended warranty deferred revenue and cost was $1,898,000 and $258,000, respectively. As of January 31, 2013, the extended warranty deferred revenue and cost was $875,000 and $269,000, respectively. | |
Indemnification Arrangements | ' |
Indemnification Arrangements | |
The Company undertakes indemnification obligations in its ordinary course of business. For instance, the Company has undertaken to indemnify its underwriters and certain investors in connection with the issuance and sale of its securities and the Company provides indemnification for its directors and officers in accordance with Delaware law. The Company has also undertaken to indemnify certain customers and business partners for, among other things, the licensing of its products, the sale of its DVRs, and the provision of engineering and consulting services. Pursuant to these agreements, the Company may indemnify the other party for certain losses suffered or incurred by the indemnified party in connection with various types of claims, which may include, without limitation, intellectual property infringement, advertising and consumer disclosure laws, certain tax liabilities, negligence and intentional acts in the performance of services and violations of laws, including certain violations of securities laws with respect to underwriters and investors. The term of these indemnification obligations is generally perpetual. The Company’s obligation to provide indemnification under its agreements with customer and business partners would arise in the event that a third party filed a claim against one of the parties that was covered by the Company’s indemnification obligation. As an example, if a third party sued a customer for intellectual property infringement and the Company agreed to indemnify that customer against such claims, its obligation would be triggered. | |
The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include but are not limited to: the nature of the claim asserted; the relative merits of the claim; the financial ability of the party suing the indemnified party to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party; and the willingness of such party to engage in settlement negotiations. Due to the nature of the Company’s potential indemnity liability, its indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue operation in the ordinary course of business. | |
Under certain circumstances, the Company may have recourse through its insurance policies that would enable it to recover from its insurance company some or all amounts paid pursuant to its indemnification obligations. The Company does not have any assets held either as collateral or by third parties that, upon the occurrence of an event requiring it to indemnify a customer, the Company could obtain and liquidate to recover all or a portion of the amounts paid pursuant to its indemnification obligations. | |
Legal Matters | ' |
COMMITMENTS AND CONTINGENCIES | |
Product Warranties | |
The Company’s standard manufacturer's warranty period to consumers for TiVo-enabled DVRs is 90 days for parts and labor from the date of consumer purchase, and from 91-365 days for parts only. Within the limited warranty period, consumers are offered a no-charge exchange for TiVo-enabled DVRs returned due to product defect, within 90 days from the date of consumer purchase. Thereafter, consumers may exchange a TiVo-enabled DVR with a product defect for a charge. As of October 31, 2013 and January 31, 2013, the accrued warranty reserve was $534,000 and $419,000, respectively. The Company’s accrued warranty reserve is included in accrued liabilities in the accompanying condensed consolidated balance sheets. | |
The Company also offers its TiVo-Owned customers separately priced optional 2-year and 3-year extended warranties. The Company defers and amortizes cost and revenue associated with the sales of these extended warranties over the warranty period or until a warranty is redeemed. Additionally the Company offers its MSO customers separately priced optional 3-year extended warranties. The Company defers the revenues associated with sale of these extended warranties over the second and third year of the warranty period. As of October 31, 2013, the extended warranty deferred revenue and cost was $1,898,000 and $258,000, respectively. As of January 31, 2013, the extended warranty deferred revenue and cost was $875,000 and $269,000, respectively. | |
Indemnification Arrangements | |
The Company undertakes indemnification obligations in its ordinary course of business. For instance, the Company has undertaken to indemnify its underwriters and certain investors in connection with the issuance and sale of its securities and the Company provides indemnification for its directors and officers in accordance with Delaware law. The Company has also undertaken to indemnify certain customers and business partners for, among other things, the licensing of its products, the sale of its DVRs, and the provision of engineering and consulting services. Pursuant to these agreements, the Company may indemnify the other party for certain losses suffered or incurred by the indemnified party in connection with various types of claims, which may include, without limitation, intellectual property infringement, advertising and consumer disclosure laws, certain tax liabilities, negligence and intentional acts in the performance of services and violations of laws, including certain violations of securities laws with respect to underwriters and investors. The term of these indemnification obligations is generally perpetual. The Company’s obligation to provide indemnification under its agreements with customer and business partners would arise in the event that a third party filed a claim against one of the parties that was covered by the Company’s indemnification obligation. As an example, if a third party sued a customer for intellectual property infringement and the Company agreed to indemnify that customer against such claims, its obligation would be triggered. | |
The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include but are not limited to: the nature of the claim asserted; the relative merits of the claim; the financial ability of the party suing the indemnified party to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party; and the willingness of such party to engage in settlement negotiations. Due to the nature of the Company’s potential indemnity liability, its indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue operation in the ordinary course of business. | |
Under certain circumstances, the Company may have recourse through its insurance policies that would enable it to recover from its insurance company some or all amounts paid pursuant to its indemnification obligations. The Company does not have any assets held either as collateral or by third parties that, upon the occurrence of an event requiring it to indemnify a customer, the Company could obtain and liquidate to recover all or a portion of the amounts paid pursuant to its indemnification obligations. | |
Legal Matters | |
Intellectual Property Litigation. | |
On October 6, 2011, Digital CBT filed a complaint against TiVo in the District of Delaware (“First Action”) alleging infringement of U.S. Patent No. 5,805,173 ("System and Method for Capturing and Transferring Selected Portions of a Video Stream in a Computer System"). Digital CBT sought an injunction and unspecified damages. On March 22, 2012, Digital CBT dismissed the Delaware complaint and filed a substantially identical complaint in the Central District of California (“Second Action”). On July 18, 2012, Digital CBT informed the Company of a potential standing issue with the March 22, 2012 complaint because it appeared that Digital CBT did not have the necessary rights to assert infringement of the '173 patent against the Company. On July 24, 2012, the Company filed a complaint against Digital CBT in the Northern District of California (“Third Action”) requesting declaratory judgment that U.S. Patent No. 5,805,173 ("System and Method for Capturing and Transferring Selected Portions of a Video Stream in a Computer System") is invalid and not infringed. On July 26, 2012, Digital CBT claimed to have corrected its standing problem and filed a complaint against TiVo (“Fourth Action”), substantially identical to its March 22, 2012 complaint against the Company, in the Central District of California. On July 30, 2012, Digital CBT filed a motion to dismiss its own Second Action, which TiVo did not oppose, and on August 29, 2012 the court dismissed the Second Action. On September 17, 2012, Digital CBT filed a motion to dismiss or alternatively to transfer the Third Action to the Central District of California. On October 29, 2012, the Court transferred the Third Action to the Central District of California, where the Fourth Action is pending and where Digital CBT has a case involving the same patent pending against AT&T. On October 31, 2012 TiVo filed its answer and counterclaims in the Fourth Action. On April 5, 2013, the United States District Court for the Central District of California Southern Division entered an order in the Digital CBT v. TiVo case scheduling, among other things, the completion of discovery by April 18, 2014 and jury trial to begin on July 29, 2014. The Company may incur material expenses in connection with these litigations and in the event there is an adverse outcome, the Company's business could be harmed. The Company has determined a potential loss is reasonably possible; however, based on its current knowledge, management does not believe that the amount of such possible loss or a range of potential loss is reasonably estimable. | |
From time to time, the Company is involved in numerous lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated. As of October 31, 2013, the Company has not accrued any pre-judgment liability for any lawsuits filed against the Company, as the Company has neither determined that it is probable that a liability has been incurred at the date of the financial statements nor that the amount of any loss can be reasonably estimated. The Company has accrued $4.5 million, including accrued interest, for arbitrations proceedings related to a contractual dispute. The Company is currently appealing an unfavorable decision in the initial arbitration proceeding. The Company expenses legal costs as they are incurred. |
CASH_AND_INVESTMENTS_Tables
CASH AND INVESTMENTS (Tables) | 9 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Investments and Cash [Abstract] | ' | ||||||||||||
Cash Cash Equivalents Short term and Long term investments | ' | ||||||||||||
Cash, cash equivalents, and short-term investments, consisted of the following: | |||||||||||||
As of | |||||||||||||
October 31, 2013 | January 31, 2013 | ||||||||||||
(in thousands) | |||||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 29,079 | $ | 20,005 | |||||||||
Cash equivalents: | |||||||||||||
Commercial paper | 77,543 | 99,040 | |||||||||||
Certificates of deposit | — | 2,024 | |||||||||||
Money market funds | 86,187 | 36,035 | |||||||||||
Corporate debt securities | 450 | — | |||||||||||
Municipal bonds | 3,000 | — | |||||||||||
Total cash and cash equivalents | $ | 196,259 | $ | 157,104 | |||||||||
Marketable securities: | |||||||||||||
Certificates of deposit | 13,800 | 27,961 | |||||||||||
Commercial paper | 179,359 | 128,023 | |||||||||||
Corporate debt securities | 549,004 | 193,932 | |||||||||||
U.S. agency securities | 20,013 | 37,109 | |||||||||||
U.S. Treasury securities | 20,084 | 40,286 | |||||||||||
Foreign government securities | 9,092 | 9,555 | |||||||||||
Variable-rate demand notes | 350 | 410 | |||||||||||
Asset and mortgage-backed securities | 35,018 | 16,816 | |||||||||||
Municipal bonds | 4,887 | 16,044 | |||||||||||
Current marketable debt securities | 831,607 | 470,136 | |||||||||||
Other investment securities: | |||||||||||||
Other investment securities - cost method | $ | 250 | $ | 250 | |||||||||
Total other investment securities | $ | 250 | $ | 250 | |||||||||
Total cash, cash equivalents, marketable securities, and other investment securities | $ | 1,028,116 | $ | 627,490 | |||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||
Contractual Maturity Date | |||||||||||||
The following table summarizes the estimated fair value of the Company’s debt investments, designated as available-for-sale, classified by the contractual maturity date of the security: | |||||||||||||
As of | |||||||||||||
October 31, 2013 | January 31, 2013 | ||||||||||||
(in thousands) | |||||||||||||
Due within 1 year | $ | 671,307 | $ | 365,386 | |||||||||
Due within 1 year through 5 years | 159,950 | 104,340 | |||||||||||
Due within 5 years through 10 years | — | — | |||||||||||
Due after 10 years | 350 | 410 | |||||||||||
Total | $ | 831,607 | $ | 470,136 | |||||||||
Unrealized Gain (Loss) on Investments | ' | ||||||||||||
Unrealized Gains (Losses) on Marketable Investment Securities | |||||||||||||
The following tables summarize unrealized gains and losses related to the Company’s investments in marketable securities designated as available-for-sale: | |||||||||||||
As of October 31, 2013 | |||||||||||||
Adjusted | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||
Gains | Losses | ||||||||||||
(in thousands) | |||||||||||||
Certificates of deposit | $ | 13,800 | $ | — | $ | — | $ | 13,800 | |||||
Commercial paper | 179,280 | 80 | (1 | ) | 179,359 | ||||||||
Corporate debt securities | 548,667 | 427 | (90 | ) | 549,004 | ||||||||
U.S. agency securities | 20,004 | 9 | — | 20,013 | |||||||||
U.S. Treasury securities | 20,074 | 10 | — | 20,084 | |||||||||
Foreign government securities | 9,094 | — | (2 | ) | 9,092 | ||||||||
Variable-rate demand notes | 350 | — | — | 350 | |||||||||
Asset and mortgage-backed securities | 35,028 | 3 | (13 | ) | 35,018 | ||||||||
Municipal bonds | 4,875 | 12 | — | 4,887 | |||||||||
Total | $ | 831,172 | $ | 541 | $ | (106 | ) | $ | 831,607 | ||||
As of January 31, 2013 | |||||||||||||
Adjusted | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||
Gains | Losses | ||||||||||||
(in thousands) | |||||||||||||
Certificates of deposit | $ | 27,961 | $ | — | $ | — | $ | 27,961 | |||||
Commercial paper | 127,967 | 65 | (9 | ) | 128,023 | ||||||||
Corporate debt securities | 193,834 | 147 | (49 | ) | 193,932 | ||||||||
U.S. agency securities | 37,081 | 28 | — | 37,109 | |||||||||
U.S. Treasury securities | 40,266 | 20 | — | 40,286 | |||||||||
Foreign government securities | 9,573 | — | (18 | ) | 9,555 | ||||||||
Variable-rate demand notes | 410 | — | — | 410 | |||||||||
Asset and mortgage-backed securities | 16,804 | 12 | — | 16,816 | |||||||||
Municipal bonds | 16,025 | 19 | — | 16,044 | |||||||||
Total | $ | 469,921 | $ | 291 | $ | (76 | ) | $ | 470,136 | ||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 9 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||
On a quarterly basis, TiVo measures at fair value certain financial assets and liabilities. The fair value of those financial assets and liabilities was determined using the following levels of inputs as of October 31, 2013 and January 31, 2013: | |||||||||||||
As of October 31, 2013 | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(in thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Commercial paper | $ | 77,543 | $ | — | $ | 77,543 | $ | — | |||||
Money market funds | 86,187 | 86,187 | — | — | |||||||||
Corporate debt securities | 450 | — | 450 | — | |||||||||
Municipal bonds | 3,000 | — | 3,000 | — | |||||||||
Short-term investments: | |||||||||||||
Certificates of deposit | 13,800 | 13,800 | — | — | |||||||||
Commercial paper | 179,359 | — | 179,359 | — | |||||||||
Corporate debt securities | 549,004 | — | 549,004 | — | |||||||||
U.S. agency securities | 20,013 | — | 20,013 | — | |||||||||
U.S. Treasury securities | 20,084 | 20,084 | — | — | |||||||||
Foreign government securities | 9,092 | — | 9,092 | — | |||||||||
Variable-rate demand notes | 350 | — | 350 | — | |||||||||
Asset- and mortgage-backed securities | 35,018 | — | 35,018 | — | |||||||||
Municipal bonds | 4,887 | — | 4,887 | — | |||||||||
Total | $ | 998,787 | $ | 120,071 | $ | 878,716 | $ | — | |||||
As of January 31, 2013 | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(in thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Commercial paper | $ | 99,040 | $ | — | $ | 99,040 | $ | — | |||||
Certificate of deposit | 2,024 | 2,024 | — | — | |||||||||
Money market funds | 36,035 | 36,035 | — | — | |||||||||
Short-term investments: | |||||||||||||
Certificates of deposit | 27,961 | 27,961 | — | — | |||||||||
Commercial paper | 128,023 | — | 128,023 | — | |||||||||
Corporate debt securities | 193,932 | — | 193,932 | — | |||||||||
U.S. agency securities | 37,109 | — | 37,109 | — | |||||||||
U.S. Treasury securities | 40,286 | 40,286 | — | — | |||||||||
Foreign government securities | 9,555 | — | 9,555 | — | |||||||||
Variable-rate demand notes | 410 | — | 410 | — | |||||||||
Asset- and mortgage-backed securities | 16,816 | — | 16,816 | — | |||||||||
Municipal bonds | 16,044 | — | 16,044 | — | |||||||||
Total | $ | 607,235 | $ | 106,306 | $ | 500,929 | $ | — | |||||
INVENTORY_Tables
INVENTORY (Tables) | 9 Months Ended | ||
Oct. 31, 2013 | |||
Inventory Disclosure [Abstract] | ' | ||
Schedule of Inventory, Current | ' | ||
Inventory was as follows: | |||
As of | |||
October 31, 2013 | January 31, 2013 | ||
( in thousands) | |||
Finished Goods | $16,863 | $11,077 | |
Raw Materials | $1,651 | $3,423 | |
Total Inventory | $18,514 | $14,500 |
NET_INCOME_PER_COMMON_SHARE_Ta
NET INCOME PER COMMON SHARE (Tables) | 9 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per common share: | |||||||||||||
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(income in thousands) | |||||||||||||
Numerator: | |||||||||||||
Net income | $ | 12,487 | $ | 59,027 | $ | 271,106 | $ | 10,512 | |||||
Interest on dilutive notes, net of tax | 1,252 | 1,965 | 3,757 | — | |||||||||
Net income for purpose of computing net income per diluted share | 13,739 | 60,992 | 274,863 | 10,512 | |||||||||
Denominator: | |||||||||||||
Weighted average shares outstanding, excluding unvested restricted stock | 116,760,061 | 119,363,613 | 118,913,986 | 119,149,010 | |||||||||
Weighted average effect of dilutive securities: | |||||||||||||
Stock options, restricted stock, and employee stock purchase plan | 4,513,747 | 3,762,125 | 4,748,207 | 4,204,433 | |||||||||
Convertible senior notes | 15,462,193 | 15,462,193 | 15,462,193 | — | |||||||||
Denominator for diluted net income per common share | 136,736,001 | 138,587,931 | 139,124,386 | 123,353,443 | |||||||||
Basic net income per common share | $ | 0.11 | $ | 0.49 | $ | 2.28 | $ | 0.09 | |||||
Diluted net income per common share | $ | 0.1 | $ | 0.44 | $ | 1.98 | $ | 0.09 | |||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ||||||||||||
The weighted average number of shares outstanding used in the computation of basic and diluted net income per share in the three and nine months ended October 31, 2013 and 2012 per share do not include the effect of the following potentially outstanding common shares because the effect would have been anti-dilutive: | |||||||||||||
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Unvested restricted stock | 7,391 | 2,258,460 | 2,491 | 1,839,690 | |||||||||
Options to purchase common stock | 627,104 | 1,689,019 | 713,097 | 1,676,379 | |||||||||
Potential shares to be issued from employee stock purchase plan | — | — | — | — | |||||||||
Convertible senior notes | — | — | — | 15,462,193 | |||||||||
Total | 634,495 | 3,947,479 | 715,588 | 18,978,262 | |||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Stock-Based Compensation | ' | ||||||||||||
Total stock-based compensation for the three and nine months ended October 31, 2013 and 2012 is as follows: | |||||||||||||
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Cost of service revenues | $ | 553 | $ | 357 | $ | 1,485 | $ | 919 | |||||
Cost of technology revenues | 329 | 563 | 1,284 | 1,181 | |||||||||
Cost of hardware revenues | 78 | 71 | 235 | 206 | |||||||||
Research and development | 3,581 | 2,991 | 10,001 | 9,584 | |||||||||
Sales and marketing | 1,525 | 1,187 | 4,134 | 2,971 | |||||||||
General and administrative | 3,777 | 3,849 | 10,314 | 10,302 | |||||||||
Change in capitalized deferred cost of technology revenues | 15 | 8 | 269 | 298 | |||||||||
Stock-based compensation before income taxes | $ | 9,858 | $ | 9,026 | $ | 27,722 | $ | 25,461 | |||||
Income tax benefit | (2,568 | ) | — | (7,034 | ) | — | |||||||
Total stock-based compensation | $ | 7,290 | $ | 9,026 | $ | 20,688 | $ | 25,461 | |||||
SETTLEMENTS_Tables
SETTLEMENTS (Tables) | 9 Months Ended | |||
Oct. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule Of Expected Revenue From Litigation Proceedings | ' | |||
Licensing revenues have been or are expected to be recognized as follows (in thousands): | ||||
Fiscal Year Ending January 31, | Technology Revenues | |||
2014 | $ | 42,692 | ||
2015 | 73,185 | |||
2016 | 73,185 | |||
2017 | 73,185 | |||
2018 | 73,185 | |||
2019 | 37,519 | |||
2020-2024 | 8,195 | |||
Total | $ | 381,146 | ||
CASH_AND_INVESTMENTS_Details
CASH AND INVESTMENTS (Details) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $196,259 | $157,104 | $177,466 | $169,555 |
Other investment securities | 250 | 250 | ' | ' |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Due within 1 year | 671,307 | 365,386 | ' | ' |
Due within 1 year through 5 years | 159,950 | 104,340 | ' | ' |
Due within 5 years through 10 years | 0 | 0 | ' | ' |
Due after 10 years | 350 | 410 | ' | ' |
Total marketable securities | 831,607 | 470,136 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 831,172 | 469,921 | ' | ' |
Gross Unrealized Gains | 541 | 291 | ' | ' |
Gross Unrealized Losses | -106 | -76 | ' | ' |
Fair Value | 831,607 | 470,136 | ' | ' |
Cash [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 29,079 | 20,005 | ' | ' |
Commercial paper [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 77,543 | 99,040 | ' | ' |
Marketable securities | 179,359 | 128,023 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 179,280 | 127,967 | ' | ' |
Gross Unrealized Gains | 80 | 65 | ' | ' |
Gross Unrealized Losses | -1 | -9 | ' | ' |
Fair Value | 179,359 | 128,023 | ' | ' |
Certificates of deposit [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 2,024 | ' | ' |
Marketable securities | 13,800 | 27,961 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 13,800 | 27,961 | ' | ' |
Gross Unrealized Gains | 0 | 0 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Fair Value | 13,800 | 27,961 | ' | ' |
Money market funds [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 86,187 | 36,035 | ' | ' |
Corporate debt securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 450 | 0 | ' | ' |
Marketable securities | 549,004 | 193,932 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 548,667 | 193,834 | ' | ' |
Gross Unrealized Gains | 427 | 147 | ' | ' |
Gross Unrealized Losses | -90 | -49 | ' | ' |
Fair Value | 549,004 | 193,932 | ' | ' |
Cash and cash equivalents [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 196,259 | 157,104 | ' | ' |
US agency securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable securities | 20,013 | 37,109 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 20,004 | 37,081 | ' | ' |
Gross Unrealized Gains | 9 | 28 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Fair Value | 20,013 | 37,109 | ' | ' |
US Treasury securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable securities | 20,084 | 40,286 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 20,074 | 40,266 | ' | ' |
Gross Unrealized Gains | 10 | 20 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Fair Value | 20,084 | 40,286 | ' | ' |
Foreign government securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable securities | 9,092 | 9,555 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 9,094 | 9,573 | ' | ' |
Gross Unrealized Gains | 0 | 0 | ' | ' |
Gross Unrealized Losses | -2 | -18 | ' | ' |
Fair Value | 9,092 | 9,555 | ' | ' |
Variable-rate demand notes [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable securities | 350 | 410 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 350 | 410 | ' | ' |
Gross Unrealized Gains | 0 | 0 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Fair Value | 350 | 410 | ' | ' |
Asset and mortgage-backed securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable securities | 35,018 | 16,816 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 35,028 | 16,804 | ' | ' |
Gross Unrealized Gains | 3 | 12 | ' | ' |
Gross Unrealized Losses | -13 | 0 | ' | ' |
Fair Value | 35,018 | 16,816 | ' | ' |
Municipal bonds [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 3,000 | 0 | ' | ' |
Marketable securities | 4,887 | 16,044 | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' | ' | ' |
Adjusted Cost | 4,875 | 16,025 | ' | ' |
Gross Unrealized Gains | 12 | 19 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Fair Value | 4,887 | 16,044 | ' | ' |
Current marketable debt securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable securities | 831,607 | 470,136 | ' | ' |
Other investment securities - cost method [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Other investment securities | 250 | 250 | ' | ' |
Cash, cash equivalents, marketable securities, and other investments [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Total cash, cash equivalents, marketable securities and other investment securities | $1,028,116 | $627,490 | ' | ' |
FAIR_VALUE_Fair_Value_by_Balan
FAIR VALUE (Fair Value by Balance Sheet Grouping) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | $998,787 | $607,235 |
Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 77,543 | 99,040 |
Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 86,187 | 36,035 |
Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 2,024 |
Short-term investments | 13,800 | 27,961 |
Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 179,359 | 128,023 |
Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 450 | ' |
Short-term investments | 549,004 | 193,932 |
US agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 20,013 | 37,109 |
US Treasury securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 20,084 | 40,286 |
Foreign government securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 9,092 | 9,555 |
Variable-rate demand notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 350 | 410 |
Asset and mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 35,018 | 16,816 |
Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 3,000 | ' |
Short-term investments | 4,887 | 16,044 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 120,071 | 106,306 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 86,187 | 36,035 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 2,024 |
Short-term investments | 13,800 | 27,961 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | ' |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Treasury securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 20,084 | 40,286 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign government securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Variable-rate demand notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset and mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | ' |
Short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 878,716 | 500,929 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 77,543 | 99,040 |
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 0 |
Short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 179,359 | 128,023 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 450 | ' |
Short-term investments | 549,004 | 193,932 |
Significant Other Observable Inputs (Level 2) [Member] | US agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 20,013 | 37,109 |
Significant Other Observable Inputs (Level 2) [Member] | US Treasury securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign government securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 9,092 | 9,555 |
Significant Other Observable Inputs (Level 2) [Member] | Variable-rate demand notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 350 | 410 |
Significant Other Observable Inputs (Level 2) [Member] | Asset and mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 35,018 | 16,816 |
Significant Other Observable Inputs (Level 2) [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 3,000 | ' |
Short-term investments | 4,887 | 16,044 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 0 |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | US agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | US Treasury securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Foreign government securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Variable-rate demand notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Asset and mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | ' |
Short-term investments | $0 | $0 |
FAIR_VALUE_Narrative_Details
FAIR VALUE (Narrative) (Details) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Convertible debt carrying value | $172,500,000 | $172,500,000 |
Convertible debt fair value | 238,100,000 | 241,600,000 |
Cost method investment | $250,000 | ' |
INVENTORY_Details
INVENTORY (Details) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished Goods | $16,863 | $11,077 |
Raw Materials | 1,651 | 3,423 |
Total Inventory | $18,514 | $14,500 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 | Oct. 31, 2013 | Jul. 02, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
Google, Inc. and Cisco Litigation Case [Member] | Settled Litigation [Member] | Minimum [Member] | Maximum [Member] | |||
Google, Inc. and Cisco Litigation Case [Member] | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Product warranty accrual | $534,000 | $419,000 | ' | ' | ' | ' |
Extended product warranty term | ' | ' | ' | ' | '2 years | '3 years |
Extended warranty deferred revenue | 1,898,000 | 875,000 | ' | ' | ' | ' |
Extended warranty deferred cost of sales | 258,000 | 269,000 | ' | ' | ' | ' |
Litigation settlement | ' | ' | 490,000,000 | 490,000,000 | ' | ' |
Arbitration award accrual | $4,500,000 | ' | ' | ' | ' | ' |
NET_INCOME_PER_COMMON_SHARE_Sc
NET INCOME PER COMMON SHARE (Schedule of Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Numerator: | ' | ' | ' | ' |
Net income | $12,487 | $59,027 | $271,106 | $10,512 |
Interest on dilutive notes, net of tax | 1,252 | 1,965 | 3,757 | 0 |
Net income for purpose of computing net income per diluted share | $13,739 | $60,992 | $274,863 | $10,512 |
Denominator: | ' | ' | ' | ' |
Weighted average shares outstanding, excluding unvested restricted stock | 116,760,061 | 119,363,613 | 118,913,986 | 119,149,010 |
Weighted average effect of dilutive securities: | ' | ' | ' | ' |
Stock options, restricted stock, and employee stock purchase plan | 4,513,747 | 3,762,125 | 4,748,207 | 4,204,433 |
Convertible senior notes | 15,462,193 | 15,462,193 | 15,462,193 | 0 |
Denominator for diluted net income per common share | 136,736,001 | 138,587,931 | 139,124,386 | 123,353,443 |
Basic loss per common share (in dollars per share) | $0.11 | $0.49 | $2.28 | $0.09 |
Diluted loss per common share (in dollars per share) | $0.10 | $0.44 | $1.98 | $0.09 |
NET_INCOME_PER_COMMON_SHARE_Sc1
NET INCOME PER COMMON SHARE (Schedule of Anti-Dilutive Shares) (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total antidilutive securities | 634,495 | 3,947,479 | 715,588 | 18,978,262 |
Unvested restricted stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total antidilutive securities | 7,391 | 2,258,460 | 2,491 | 1,839,690 |
Option to purchase common stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total antidilutive securities | 627,104 | 1,689,019 | 713,097 | 1,676,379 |
Potential shares to be issued from ESPP [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total antidilutive securities | 0 | 0 | 0 | 0 |
Convertible senior notes [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total antidilutive securities | 0 | 0 | 0 | 15,462,193 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation before income taxes | $9,858 | $9,026 | $27,722 | $25,461 |
Income tax benefit | -2,568 | 0 | -7,034 | 0 |
Total stock-based compensation | 7,290 | 9,026 | 20,688 | 25,461 |
Cost of service revenues [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation before income taxes | 553 | 357 | 1,485 | 919 |
Cost of technology revenues [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation before income taxes | 329 | 563 | 1,284 | 1,181 |
Cost of hardware revenue [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation before income taxes | 78 | 71 | 235 | 206 |
Research and development [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation before income taxes | 3,581 | 2,991 | 10,001 | 9,584 |
Sales and marketing [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation before income taxes | 1,525 | 1,187 | 4,134 | 2,971 |
General and administrative [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation before income taxes | 3,777 | 3,849 | 10,314 | 10,302 |
Change in deferred cost of technology revenues [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation before income taxes | $15 | $8 | $269 | $298 |
SETTLEMENTS_Details
SETTLEMENTS (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Jul. 02, 2013 | Oct. 31, 2013 | |
Google, Inc. and Cisco Litigation Case [Member] | Google, Inc. and Cisco Litigation Case [Member] | Verizon Settlement [Member] | Settled Litigation [Member] | Settled Litigation [Member] | |
Google, Inc. and Cisco Litigation Case [Member] | Google, Inc. and Cisco Litigation Case [Member] | ||||
Litigation Settlement [Line Items] | ' | ' | ' | ' | ' |
Litigation settlement | $490,000,000 | ' | $250,400,000 | $490,000,000 | ' |
Past Infringement Interest Income Receivable | 752,000 | ' | 568,000 | ' | ' |
Proceeds from Legal Settlements | ' | 108,100,000 | 78,400,000 | ' | ' |
Future Expected Revenue to be Recognized [Abstract] | ' | ' | ' | ' | ' |
2014 | ' | ' | ' | ' | 42,692,000 |
2015 | ' | ' | ' | ' | 73,185,000 |
2016 | ' | ' | ' | ' | 73,185,000 |
2017 | ' | ' | ' | ' | 73,185,000 |
2018 | ' | ' | ' | ' | 73,185,000 |
2019 | ' | ' | ' | ' | 37,519,000 |
2020-2024 | ' | ' | ' | ' | 8,195,000 |
Total | $381,146,000 | ' | $171,400,000 | ' | $381,146,000 |
INCOME_TAX_Details
INCOME TAX (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit) | ($2,023,000) | $848,000 | ($168,947,000) | $1,067,000 | ' |
Deferred Tax Assets, Gross | ' | ' | ' | ' | 220,500,000 |
Deferred Tax Assets, Net of Valuation Allowance | $171,800,000 | ' | $171,800,000 | ' | ' |