After a huge profit drop, Synacor CEO resigns
Michelle Clancy | 07-03-2014
Synacor CEO Ron Frankel has quit in the wake of the TV everywhere technology vendor posting a massive 75% drop in fourth-quarter net income and a decline in revenue.
Synacor saw its profit drop to $200,000 compared to $800,000 one year prior. It also posted $29.4 million in revenue, down from $32.2 million this time last year.
Frankel, who has served as Synacor's chief executive since 2001, will remain on the company's board of directors and continue as an adviser after leaving as CEO. The company is also eliminating 12 jobs.
The company supplies TV everywhere portals and authentication technology to several heavy hitters, including Charter Communications, Verizon, CenturyLink and Atlantic Broadband. It recently launched a white-label authentication solution that allows distributors to give subscribers the option of using Facebook, Twitter and Google credentials to log into TV everywhere.
Synacor, which faces Clearleap and the Adobe Primetime TVE platform in terms of competition, went public in February 2012. Frankel said that now it would consider a sale back to private ownership.
"To the extent that there are options we would always consider options based on [the] long term and based on maximising shareholder value," Frankel said on the earnings call.
"I'm incredibly proud of the Synacor team that I've had the pleasure of working with over the course of my 13 years with Synacor, and the innovative products we've created," Frankel said. "I'm confident in our ability to attract great leadership to Synacor and will continue to lead the company as CEO through any transition."
Synacor stock dropped about 10% Thursday morning after the news broke, before closing still down 6.74%.