Digital TV software provider ANT took a tumble on Thursday after it said the business could be sold or put into voluntary liquidation.
Its shares were down 12% after the company announced it was looking to maximise shareholder value, "which may involve continued trading, voluntary liquidation, the sale of the company or asset sales".
The firm said it delivered record revenue in the first half of 2012 but with the most significant contribution being from royalties, the long haul in bringing products and projects to market had significantly eroded gross margins.
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Revenue was up 15% to £2.47m, but gross margin was down to 65% from 84% the year before.
This led to losses before tax increasing to £0.44m from £0.28m previously.
"The material increase in royalties revenue and unit shipments, which reflect an initial customer rollout, masks the underlying performance of the business," said Chairman Roysten Hoggarth.
"The changes in our market, and the increasing demand for the supply of turnkey solutions has put a considerable stress on the business," he added.
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