February 26, 2019
DVR pioneer TiVo reported a fourth-quarter (ended Dec. 31, 2018) loss of $288 million, compared with income of $18 million during the previous-year period. Revenue fell 22% to $168.5 million, from $214.2 million a year earlier.
For the fiscal year, revenue dropped 16% to $695.8 million, from $826.4 million in 2017.
TiVo attributed much of the loss to a goodwill impairment charge of $269 million in its “product reporting” business unit.
Interim CEO Raghu Rau tried to put a positive spin on the results, saying TiVo continues to ready an undisclosed “unique entertainment discovery experience,” that it showcased at CES in Las Vegas and “received very promising feedback.”
Rau said TiVo plans to launch the “Internet age” product in the second half the year.
“We are very excited about the prospects for our long-term growth strategy,” he said.
The executive admitted that ongoing internal review of strategic alternatives for TiVo’s product and IP licensing businesses “is taking longer than we hoped.”
Indeed, quarterly revenue from IP licensing to pay-TV operators plummeted nearly 50% to $42.3 million from $83.6 million last year. IP licensing to CE manufacturers fell 31% to $8.9 million.
The increase in revenue from new media, international pay-TV providers was primarily due to a $5.7 million increase in catch-up payments.
“We have proactively begun working … on preparing for the possible separation of the two businesses to help address some of the complexities and potentially facilitate strategic transactions,” Rau said.
He said the company hopes to shed further light on strategic plans with the goal of driving shareholder value.
“We look forward to providing additional information by our first quarter earnings call,” Rau said.