SeaChange 'encouraged' despite second-quarter loss
Video software manufacturer SeaChange International of Acton saw a second-quarter loss of $4.8 million, or 14 cents per share, the company reported Wednesday. Its revenue for the quarter, which ended July 31, was $27.9 million.
The loss, however, was lower than for the second quarter a year earlier, when SeaChange had an operating loss of $5.2 million, or 15 cents per share, and revenue of $29.8 million. The company credited the improvement primarily to the growth of new product revenues.
"I'm greatly encouraged by our performance sequentially in the second quarter marked by our increased new software product revenues and improved margins," CEO Jay Samit said in the release. Notable in the second quarter, he said, was that the company’s Nucleus video gateway software that was launched to subscribers in a third European country, marking three consecutive quarters of new market launches.
SeaChange was also awarded a new contract for its AssetFlow content management system, meaning the company now provides software solutions to two of North America's largest satellite operators, Samit said.
For the first six months of fiscal 2016, the company posted revenue of $51.0 million and had an operating loss of $14.2 million. That compares favorably to the first half of fiscal 2015, the company noted, which had revenue of $54.2 million and a loss of $15.3 million.
The second-quarter results were in accord with the company’s outlook after its first-quarter loss of more than $9.8 million. Company officials then predicted second-quarter revenue in the range of $26 million to $28 million while substantially cutting its losses to a range of 9 to 15 cents per share.
CFO Anthony Dias said that, in line with the company’s original guidance, third-quarter fiscal 2016 revenues are expected to be in the range of $27 million to $29 million.
WBJ Web Partners
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