SeaChange Q3 Revenue Drops 8%, Says Q4 Will be Better

Posted by Joe Zaller
Dec 09 2010

Video-on-demand specialist SeaChange announced that revenue for the third quarter of 2010 was $49.9m, down 8% versus the same period a year ago, and down 3% versus the previous quarter.  The results were disappointing to equity analysts whose consensus target was $51.3m for the quarter.  

Non-GAAP net income in the quarter was $1.5m, 56% lower than the same period last year.  ON a GAAP basis, the company lost $5.2m versus a gain of $700K in last year’s third quarter.

On a segment basis:

  • Software revenue was $34.8 million, a decline of 3% versus the same period last year.  SeaChange said the drop in software sales in the quarter to lower VOD software licensing revenue from North American customers, but the decrease was  partially offset by higher sales of ad software and the recently acquired VividLogic and eventIS.

 

  • Sales from the servers & storage segment were $6.2m, down 50% compared to than during the same period a year ago.  The company attributed this decline to lower VOD server shipments to customers in North America and Latin America combined with the impact of an isolated warranty-related return of product from a customer resulting in the reduction of previously recorded revenue.

 

  •  Media services revenue was $8.1m, up 56% versus last year, thanks to new customer contracts in France and Dubai, as well as increased content processing fees from a customer in Greece.

.

For the year-to-date, the company’s non-GAAP revenues were $159.2m, an increase of 7% versus the first nine months of fiscal 2010. On a GAAP basis the company’s revenues for the first nine months of the year were $155.4m, up 5% versus last year.

Year to date net income was $7.4m on a non-GAAP basis and $18.6m on a GAAP basis, versus $6.7m and 1.3m respectively.

In a statement, company chairman & CEO Bill Styslinger provided strong guidance, saying that the company’s non-GAAP revenue in Q4 would be in the $55m to $59m range.  “The strong guidance is primarily due to expectations for higher software license revenue in North America,” said Styslinger.

.

You can read the full SeaChange Q3 earnings press release here.

Information about the company’s Q2 results are here.

.

One Response

  1. […] This post was mentioned on Twitter by greyhawk, Mysteriously Unnamed. Mysteriously Unnamed said: SeaChange Q3 Revenue Drops 8%, CEO Says Q4 Will be Better #VOD #broadcast #cable http://dcft.co/fRRWJn […]

%d bloggers like this: