SeaChange International posts solid 3Q results
SeaChange International was able to weather the slumping economy to post a profit in the third quarter, and it also expects its profits to increase in the next fiscal year.
Minus charges associated with its September purchase of eventIS Group B.V., SeaChange posted sales of $53.3 million, or 11 cents a share, thanks in large part to its VOD software and servers and storage offerings. The total revenues were $1.5 million higher than total revenues of $51.8 million for the third quarter of last year
During yesterday’s earnings, SeaChange said it earned $700,000, or 2 cents a share, in its fiscal third quarter compared to $3.4 million, or 11 cents per share, in the same quarter a year ago.
The servers and storage segment generated revenues of $12.4 million in the third quarter of fiscal 2010, which was $2 million, or 19 percent, higher than revenues of $10.4 million for the third quarter of fiscal 2009. SeaChange said the near doubling of VOD server revenue in this year’s third quarter compared to the third quarter of last year was due primarily to increased server shipments to Comcast in support of its next-generation VOD architecture rollout.
The media services operating segment revenue for the third quarter of fiscal 2010 of $5.2 million was $1.3 million, or 35 percent, higher than comparable revenue from last year’s third quarter.
"We are pleased to report a solid quarter of financial performance marked by double-digit percentage revenue increases in our VOD product lines and media services business segment,” said SeaChange chairman and CEO Bill Styslinger. "We saw continued strength in VOD software and server spending by our largest North American service provider customer during the third quarter, as well as encouraging results from our customer diversification strategy for our media services business.”
In fiscal year 2011, which starts in February, SeaChange predicted sales of between $225 million and $235 million.