• by Wayne Friedman , February 27, 2019

As it continues to review “strategic alternatives” for the company, TiVo posted sharply lower revenues in the fourth quarter.

The entertainment program guide/TV time-shifting platform company saw revenue decline 21% in the quarter to $168.5 million. It says it is in “ongoing discussions regarding potential strategic options or transactions for each of our product and IP licensing businesses.”

TiVo’s stock was down 11% on Wednesday to $9.94.

TiVo saw a 4% decline in product revenue -- which include platform and software sales -- to $96.5 million. The company says there was a “decrease in hardware revenue, as a result of the planned transition of our MSO [cable operating] partners and retail customers to deploying the TiVo service on third-party hardware.”

Revenue licensing to U.S. pay TV providers sank 49% to $42.3 million. Total licensing deals -- which includes deals to consumer electronics manufacturers, such as TV sets -- declined 37% to $72 million. TiVo does not report net income.

TiVo continues to be in litigation with Comcast Corp over patent issues.

Says Eric Wold, media analyst at B.Riley FBR: “With TIVo shares down more than 20% since the strategic review was announced  [February 2018] and down around 50% since litigation against Comcast was first announced [April 2016], we believe TiVo shares reflect a zero probability of either a positive outcome from the strategic review or a successful settlement/license with Comcast— which we continue to believe is the wrong stance to take.”

TiVo says 22 million homes globally use TiVo’s TV set-top equipment, which includes video recording.

TiVo’s Targeted Audience Delivery (TAD) platform, which creates segments of TV viewers from its TV return path data, had revenue growth of 117%, compared to the previous quarter.