It hardly suprises me they spent more than they made during the recent quarter.

After all, they are engineering the new TiVo series 3 model that will be coming out late this year.  All the bells and whistles it has, and support for all the latest technology - is not something that can whip up in just one or two quarters with just a few engineers.

They have also rolled out new service after new service since the start of the year.  So far, none of these services are extra-cost ones. They just keep adding more free servies, strengthening their position in the marketplace.

The bright news at present is that they have over four million subscribers. They have really grown their customer/client base in the last year.

When they roll out their new system, my guess is there will be a consumer buying spree as pent-up consumer demand for HDTV TiVos finally gets satisfied.

TiVo has completely revolutionized TV watching over the past five years.

They came in at just the right time, right when super-sized hard drives became available.

As the ability to move information faster appeared, they were able to take advantage of that.  When Java appeared on Linux, which they use, they adopted Java as well.  When Yahoo was looking for partners to bring their services to things beyond just plain computers, TiVo was able to join forces with them as well.

They also recently introduced the dual-tuner TiVo series 2 model.  It can record 2 TV shows at once.