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SeaChange posts loss post-divestiture

Thu, 03/29/2012 - 2:43pm
Brian Santo

In its fiscal fourth quarter, SeaChange International reported lower revenue compared to a year ago, and charges associated with shedding its server and storage business resulted in a quarterly loss.

Fourth-quarter revenue was $51.7 million (not counting $2.4 million in revenues from discontinued operations), compared to $57.9 million in the similar period a year ago.

The company’s Q4 loss was approximately $3.5 million, compared with a net of $11.2 million in the company’s year-ago fourth quarter. The company took $3.1 million in charges for restructuring, primarily related to headcount reductions, and $1.8 million of earn-out expenses related to prior acquisitions.

SeaChange announced it would sell its broadcast servers and storage business a week ago. The company will concentrate on its video streaming software and related hardware business.

For the fiscal year ended Jan. 31, the company posted total revenues of $197.7 million, which was approximately $4 million lower than total revenues of $201.7 million for fiscal 2011.

“With intense focus on execution, we ended fiscal 2012 with our strongest quarterly operating performance of the year,” said SeaChange CEO Raghu Rau. “Our focus in fiscal 2013 is on the execution of our strategy to transform the company into a pure-play software provider; lowering our overall cost structure; delivering industry-leading, next-generation solutions; and achieving superior financial results. We recently announced the divestiture of our broadcast servers and storage business and are actively engaged in the potential divesture of other non-core assets that do not fit into our long-term business strategy.”

Rau said the company expects further operating expense reductions in the first half of this year “through product and market rationalization and reductions in general and administrative costs.”

He added, “We will continue to invest significantly in research and development by moving investments from legacy to next-generation products and building our intellectual property.”

Rau said the company expects 2013 total revenues to be in the range of $188 million to $200 million, with software revenues to be in the range of $150 million to $160 million, and media services revenues to be in the range of $38 million to $40 million.

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