EXPLORING ALL ALTERNATIVES TO MAXIMIZE VALUE FOR SHAREHOLDERS
As announced in TiVo’s Q4 2017 earnings release and its related earnings call, we are continuing to explore a broad range of strategic alternatives to maximize the value of the Company and best deliver value to our shareholders. We expect to provide an update on this exploration process no later than our Q2 2018 earnings call.
REVENUE RECOGNITION CHANGE
Effective January 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which superseded the previous revenue recognition requirements. As a result of adopting the new revenue standard, we recognized approximately $3.7 million more in revenue in the first quarter of 2018 than we would have under the previous requirements. However, as mentioned in our fourth quarter 2017 earnings release, we expect we will recognize approximately $30.0 million less in revenue for the full year 2018, than we would have under the previous requirements. The impact is largely related to the legacy TiVo Time Warp intellectual property licenses, which expire in mid-2018, for which we recognized approximately $8.9 million in revenue in the first quarter of 2018. We expect to recognize approximately $8.4 million and $2.8 million in revenue related to the legacy TiVo Time Warp intellectual property licenses in the second and third quarters of 2018, respectively.
CAPITAL ALLOCATION
On May 9, 2018, TiVo’s Board of Directors declared a cash dividend of $0.18 per common share, to be paid on June 20, 2018 to all stockholders of record as of the close of business on June 6, 2018.
BUSINESS OUTLOOK
As mentioned above, TiVo’s management and board are conducting an in-depth review of its businesses, cost structure and strategic options to maximize shareholder value. Due to the broad range of potential outcomes, the Company is not providing financial estimates for fiscal 2018 at this time.
TiVo Inc. (Nasdaq: TIVO)