Synacor stock dropped about 10 percent Thursday morning, hours after the TV Everywhere technology vendor posted a drop in fourth-quarter revenue and net income and announced that CEO Ron Frankel would resign.
The company, which provides TV Everywhere portals and authentication technology to Charter Communications (Nasdaq: CHTR), Verizon (NYSE: VZ), CenturyLink (NYSE: CTL), Atlantic Broadband and several mid-sized distributors, saw Q4 net income drop to $200,000 compared to $800,000 in Q4 2012. It posted $29.4 million in revenue, down from $32.2 million this time last year.
Frankel, who took Synacor public in February 2012, signaled on an earnings call late Wednesday that the company could consider a sale. “To the extent that there are options we would always consider options based on [the] long term and based on maximizing shareholder value,” Frankel said. His comment came in response to an analyst who noted that Synacor “would probably make a very nice tuck-in for someone while also providing synergies to expand the platforms that you lay out.”
Frankel said he will remain at the helm until Synacor’s board finds a successor.
Synacor announced a deal with Verizon last May to create a TV Everywhere portal that offers access to content from HBO, Showtime, SyFy, CNBC and several other networks. In October, the company launched a white-label authentication solution that allows distributors to give subscribers the option of using Facebook, Twitter and Google logins for TV Everywhere authentication.
Synacor’s competitors include Clearleap and Adobe, whose Adobe Primetime TVE platform is used by Comcast (Nasdaq: CMCSA).
Synacor stock was trading at $2.55 at 10:35 a.m ET Thursday, down 27 cents, or 9.57 percent. The stock hit a 52-week high of $4.17 last May.