SeaChange losses deepen; sales in line with expectations
Video software manufacturer SeaChange International of Acton saw a nearly 5 percent drop in revenue in its fiscal 2016 first quarter and suffered a loss of more than $9.8 million, almost 4 percent more than what it lost in the same quarter last year and worse than company expectations.
SeaChange, which reported its results for the quarter Thursday, said it took in $23.2 million in revenue, in line with a previously stated outlook of between $22 million and $24 million. But while it expected a net loss per share in the range of 19 to 25 cents, the loss amounted to 29 cents per share.
Despite the results, the company’s top executive cited several gains in the company’s product line and in sales.
“As our core products continue to take hold in markets globally, we're working aggressively to secure opportunities for a new set of customers with our premium (over the top, or OTT) platform,” CEO Jay Samit said in a statement.
Samit also cited key gains on the revenue side, notably with additional multi-million dollar contracts from one of its largest customers that the company began to fill during the quarter.
On the operational side, SeaChange is continuing to focus on reining in costs, citing “substantial progress,” according to CFO Anthony Dias. In a separate announcement Thursday, SeaChange officials said it hired a chief operating officer: software industry veteran and SeaChange board member Edward Terino, who will oversee software development, sales and service.
“With his extensive insight into our operations and markets, Ed will ensure our ability to further improve operations, augment customer satisfaction, and establish our software products in new markets,” Samit said.
SeaChange stock, which trades on the Nasdaq under the symbol SEAC, fell nearly 5 percent at the opening bell this morning after entering the day at $7.53 a share. But it recovered some of that loss quickly.
In its second-quarter outlook, company officials foresee 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.
WBJ Web Partners
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