SeaChange International posted Q3 revenues of $42.3 million, 20 percent higher than a year-ago, buoyed in part by strong results at its broadband division, which includes video-on-demand and ad-insertion hardware and software.
SeaChange still managed to record a net loss of $1 million (4 cents per share), but that was narrowed from a net loss of $2.1 million (7 cents per share) in the year-ago period.
The company ended the period with $55 million in cash, cash equivalents and marketable securities and no debt, versus $43.7 million at the end of Q2. SeaChange attributed the rise to improved customer collection efforts.
SeaChange's Broadband segment recorded revenues of $24.5 million, up 35 percent from a year ago. That was driven by a 74 percent increase in VOD system revenue derived from "strong demand" from North American cable operators and increased order activity from accounts in the EMEA (Europe, Middle East, Africa) region.
"It's clear that we're benefiting from the strength of the video-on-demand business in North America and a steady increase in VOD adoption in other parts of the world, translating into another quarter of sequential VOD revenue growth," said SeaChange President & CEO Bill Styslinger, in a statement. "The factors that have been driving our growth this year are continuing, and we expect to maintain our strong performance as increased demand for VOD content and subscriber usage drive increased storage and streaming capacity."
Styslinger, in a call with analysts and reporters Wednesday, said SeaChange is approaching 2 million streams shipped, and the serving of 25 million customers.
Editor's note: More details about SeaChange's Q3 will be covered in next week's edition of xOD Capsule, CED's weekly electronic newsletter on VOD and interactive television.