SeaChange Revenue Falls 11 Percent in Transitional FY 2012

Posted by Joe Zaller
Mar 29 2012

It has been a transitional year at video on demand solution provider SeaChange International.  The company announced a $5m cost cutting program earlier this year, parted ways with its president, and spun off its broadcast hardware business to newly formed XOR Media.

Today the company announced that its revenue in the fourth quarter of FY 2012 was $51.7m, a decline of 11% versus the same period a year ago.  These results exclude $2.4m in revenues related to discontinued operations, including its decision to sell off its broadcast servers and storage business.  .

Q4 GAAP net loss from continuing operations was $3.5m compared with GAAP net income $11.2m last year. The company said that its net income was impacted by a $3.1m charge related to headcount reduction, and $1.8m of earn-out expenses related to prior acquisitions

Full year FY 2012 revenue was $197.7m, 2% lower than last year.

The full year GAAP net loss from continuing operations was $1.3m, versus GAAP income $31.6m last year when the company realized a $27.1m pre-tax gain on an asset sale.

On a non-GAAP basis the company posted 16.4m of income from continuing operations non-GAAP income of $15.7m last year.

The Company ended fiscal year 2012 with cash, cash equivalents and marketable securities of $93.8m compared to $88.9m at the end of the third quarter of fiscal 2012. The increase in cash was primarily attributable to cash generated from operations.

Despite the challenges SeaChange company has faced over the past year, new CEO Raghu Rau was upbeat about the company’s prospects, saying that in FY 2013 SeaChange will become a leaner and more agile company and drive increased value for its shareholders.

Rau also said the the company will continue to transform itself into a pure-play software company, while lowering its cost structure.   “In addition to the $ 5.0 million in annualized cost reductions announced earlier this year and the significant reductions in operating expenses as a result of the divestiture of the broadcast servers and storage business, we expect further operating expense reductions in the first half of this year through product and market rationalization and reductions in general and administrative costs.”

 

Guidance for Fiscal 2013:

Rau said that the company expects its fiscal 2012 revenue to be in the range of $188m to $200m,  with software revenues to be in the range of $150m to $160m.   The company anticipates that its full year non-GAAP total operating income to be in the range of $19.5m to $23.5m, with software accounting for $17m to $20 m.

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Related Content:

Press Release: SeaChange International Reports Fourth Quarter and Full Year Fiscal 2012 Results

Previous Year: SeaChange Announces Q4 and Full Year 2011 Results

More Broadcast Vendor M&A: SeaChange Sells Broadcast and Storage Business to Financial Buyers

SeaChange Executes Separation Agreement with Former President

SeaChange President Departs, Position Will Not be Replaced

Press Release: SeaChange Announces More Than $5 Million in Annualized Cost Reductions

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