SeaChange cashes in on Q4 earnings
SeaChange International rang up revenues of $54 million in the fourth quarter of 2009, which was 13 percent higher than revenues of $47.8 million that were posted in the fiscal fourth quarter of 2008.
Acton, Mass.-based SeaChange credited the sales of its video-on-demand (VOD) flash servers for the improved numbers in the fourth quarter. SeaChange’s servers and storage division had revenues of $17.7 million, which was 49 percent higher than the $11.9 million garnered in the same quarter a year ago.
SeaChange said the increase in servers and storage revenue between years was primarily the result of substantially higher shipments of VOD flash memory servers to North American-based cable customers during the fourth quarter of fiscal 2009, as well as increased maintenance revenue due to a higher installed base of VOD servers.
Net income for the fourth quarter was $4.8 million, or 15 cents per diluted share, compared with $12 million, or 41 cents per diluted share, for the previous year’s fourth quarter.
SeaChange said the net income for the fourth quarter of 2008 included a $10 million gain in connection with the company’s sale of its equity interest in FilmFlex Movies Limited. Net income for the fourth quarter of fiscal 2009 included the utilization of income tax credits, resulting in a $1.5 million tax benefit for the quarter.
Total revenues for all of fiscal 2009, which ended Jan. 31, were $201.8 million, which was $21.9 million, or 12 percent, higher than total revenues of $179.9 million for the prior fiscal year. Net income for fiscal 2009 was $10 million, or 32 cents per share, compared with net income of $2.9 million, or 10 cents per share, for fiscal 2008.
SeaChange exited the most recent fourth quarter with cash, cash equivalents and marketable securities of $85.8 million and no debt, compared with $79.7 million and no debt at the end of the third quarter of fiscal 2009.
SeaChange also announced today that its board of directors has authorized the company to repurchase up to $20 million of its common stock under arrangements similar to the stock buyback program undertaken by the company in fiscal 2009 that lapsed on Dec. 31. SeaChange expects to fund repurchases of its stock from its current cash and marketable securities.
“Our fourth-quarter financial performance capped a very successful year for SeaChange,” said SeaChange President and CEO Bill Styslinger. “For fiscal 2009, we generated record revenue of $202 million, record gross margins of 51 percent, four quarters of increasing profitability and increased cash flow during the year, excluding cash used for stock repurchases, an acquisition and a facility purchase.
“In addition, we strengthened our relationships with our largest customers during the year by executing multi-year purchase agreements with our two largest customers, as well as signing a multi-year VOD and advertising purchase agreement with our largest telecommunications customer last month. Our relationships with our key customers have never been stronger.”