Morgan Keegan&Co. analyst Murray Arenson restated his "market perform" rating on TiVo Inc., praising some recent deals but cautioning that the digital video recorder company isn't out of the woods yet. Distribution deals with AT&T Broadband, Best Buy Stores Inc. and DirecTV Inc. show TiVo's ability to control costs, Arenson said. In one deal, DirecTV takes responsibility for marketing and distributing the platform, while paying TiVo $10 million to $12 million in engineering fees in 2003. Arenson also praised TiVo's ability to raise $14 million in an equity offering—with the option of selling an additional $19 million worth of shares over the next two years—which should fulfill its near-term funding needs. Nonetheless, "TiVo's next challenge is to demonstrate the ability to significantly penetrate the mass market," Arenson wrote.