SeaChange Posts Loss, Revenue Falls
Video software company SeaChange International Inc., based in Acton, reported a drop in second-quarter 2013 revenue, falling from $38.4 million in the same period last year to $36.7 million.
It also posted a loss of $6.8 million, or 21 cents per share, compared to earnings of $777,000 or 2 cents per share last year.
The company said the drops were a result of the impact of the sale of its broadcast servers and storage and media services businesses in May and included non-recurring charges that include fees associated with the sales, severance and restructuring charges, and inventory, among other things.
The first six months of the fiscal year also brought a downturn for SeaChange as it had revenues of $73.4 million, compared to $78.6 million last year. Its loss from operations for the period was $8 million, compared to income of $6,000 last year.
CEO Raghu Rau said the company is focusing on reducing costs associated with sales, administration and manufacturing and further streamlining the organization.
Rau said third-quarter revenue is expected to be in the range of $37 million to $40 million with full-year revenue to be between $152 million and $158 million.
SeaChange ended the second quarter of fiscal year 2013 with cash, cash equivalents and marketable securities of $107.1 million compared to $93.8 million at the end of last year.
It also announced that it has established a Rule 10b5-1 plan under its previously announced $25-million share repurchase program to buy back shares, allowing major holders to sell back their shares. The plan is expected to go into effect this month.
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