Question-and-Answer Session
Operator
(Operator Instructions) We’ll take our first question from Todd Mitchell of Kaufman Brothers.
Todd Mitchell - Kaufman Brothers
Thank you. Just a quick question here; would you be willing to let us know in terms of gross adds this quarter on the O&O business, what the breakdown was in terms of the HD and the standard definition box?
Thomas S. Rogers
Well, we’re not breaking out that data specifically. I will say that TiVo HD sales increased quarter over quarter and it’s now our primary SKU in terms of our retail sales activity, where increasingly the TiVo HD at retail was dominating our sales numbers there.
Todd Mitchell - Kaufman Brothers
Is it fair to say that the standard definition product that was sold was all written down inventory or is there still a SKU, an active SKU there of inventory?
Cal R. Hoagland
Still an active product in the marketplace and yes, it was written down inventory.
Todd Mitchell - Kaufman Brothers
Okay, and one last -- so it was all written down inventory?
Cal R. Hoagland
Yes.
Todd Mitchell - Kaufman Brothers
Okay, and then one last thing -- did I catch that you said that rebates totaled $4.9 million for the quarter?
Cal R. Hoagland
Yes.
Todd Mitchell - Kaufman Brothers
Okay, and lastly on the amortization, is it fair to just take the amount that you used to recognize and sort of divide it by the difference in the time?
Cal R. Hoagland
I’m not sure I understood the question.
Todd Mitchell - Kaufman Brothers
Well basically, I think it was about $6.20 is what you used to recognize for and amortize for a lifetime sub on a monthly basis. Can we just take the amount and divide it by the longer amount of time to get to that ARPU number?
Cal R. Hoagland
Well, you take the life that we had left on the pool and you amortize it over the remaining portion of that life, or an additional six months.
Todd Mitchell - Kaufman Brothers
Okay. That’s what I meant. Thank you.
Operator
Next we’ll go to Alan Gould at Natexis.
Alan Gould - Natexis Bleichroeder
Thank you. Tom, I’ve got a little bit of a philosophical question for you about the hardware business versus the software business. Now that you’ve got Comcast rolling out, Cox in technical trials, you are winning the lawsuit with EchoStar -- I’m just wondering why you continue to focus on having a standalone hardware business, why you work with cable labs in terms of creating a two-way cable card, as opposed to folks seeing more of that resources on just better at getting your system and your service to work with the cable operators, becoming more of a service business, software business with software type of economics.
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