SeaChange reports lower revenue, increase in orders
SeaChange International Inc. reported slightly lower revenues in Q2 2008 and a net loss of $8 million, up from a net loss of $1 million in the year-ago quarter, but it showed increased sales of its VOD systems to North American cable operators.
Total revenues for the quarter were $44.2 million, down from $45.8 million a year ago. Total broadband segment revenues, which include revenues from the company’s VOD and ad-insertion departments, were $22.9 million - down from $24.1 million a year ago.
VOD systems revenue nearly doubled, from $5.4 million in the first quarter to $12.4 million in the second quarter, primarily due to increased order activity from North American cable customers. VOD systems revenue growth was offset by a $1.5 million decrease in ad-insertion revenue, driven primarily by lower revenue from North American cable customers.
The company’s broadcast segment generated $3.7 million in revenue, representing a $1.8 million sequential increase.
Total services segment revenue was $17.6 million, which was slightly lower than the $17.9 million of revenue in the first quarter.
“We continue to target profitability for the second half of this year based on continued order strength in VOD systems, selected Axiom Software deployments with non-SeaChange VOD servers, increased software subscription revenue and the benefits from the second quarter cost reduction actions,” said Bill Styslinger, president and CEO of SeaChange.
The quarter’s net loss included $6 million of expenses, including severance charges and impairment charges related to capitalized software licenses, the company said.