TiVo’s fourth-quarter earnings took a dramatic turn as the company posted a $288 million loss one year after bringing in $18.4 million in income from continuing operations.
The company’s net revenues for the quarter totaled approximately $168 million but costs and expenses for the quarter ballooned to nearly $442 million. That was due primarily to a $269 million goodwill impairment charge that TiVo’s product unit took on.
TiVo reported a $6.1 million decrease in platform solutions revenue, which it largely attributed to a $3.9 million decrease in hardware revenue. That decline resulted from TiVo’s MSO partners and retail customers transitioning to deploying the TiVo service on third-party hardware. The company said that hardware revenue is expected to continue to decline as that transition continues and that revenues from classic guide products are expected to decline in the future as a result of customer churn and conversions to newer guide products, such as TiVo’s MSO guide product.
In all, TiVo’s total net revenues for the fourth quarter came in at more than $168 million, down 21% from $214 million one year ago.
TiVo’s latest financial results arrive as the company continues to review strategic alternatives going forward.
“In the quarter, we continued to advance our strategic goals, focusing on our five pillars for growth along with a continued focus on profitability. Further, at CES, we demonstrated, to select partners, a unique entertainment discovery experience for the internet age and received very promising feedback. We plan to launch this product in the second half of 2019. On the IP front, we continue to expand our licensing, particularly in international markets,” said Raghu Rau, interim president and CEO at TiVo, in a statement. “We are very excited about the prospects for our long-term growth strategy.”
TiVo is still looking at strategic options or transactions for its product and IP licensing businesses. The company said it has begun preparing internally for the possible separation of the two businesses to help address some of the complexities and potentially facilitate strategic transactions. The company hopes to provide an update on progress by the time it reports its first-quarter earnings.