Posts Tagged ‘SeaChange’

SeaChange President Departs, Position Will Not be Replaced

broadcast industry trends, Broadcast technology vendor financials | Posted by Joe Zaller
Feb 02 2012

Just two days after announcing a $5m cost savings program, VOD and multi-screen video specialist SeaChange International said that company president Yvette Kanouff has departed the company.

SeaChange says it has decided not to replace Kanouff and has eliminated the position of President as part of its ongoing plan to reduce costs and streamline the business.

Kanouff joined the company in 1997 and has served in a variety of roles including chief strategy officer and president.

“Over the past few months, Yvette has been discussing her desire to pursue other interests and we support that and wish her well. We sincerely thank Yvette for her years of dedication to SeaChange, her technical knowledge, and her contributions toward building the Company’s video-on-demand business,” said Raghu Rau, Chief Executive Officer, SeaChange.

“I’m proud that I played a significant role in establishing SeaChange as a leader in video-on-demand worldwide and in transitioning from a hardware-centric to a software-centric company,” said Kanouff. “I think SeaChange is well positioned for the future, however, it is the right time for me to move on, and I look forward to my next endeavor.”

 

Related Content:

Press Release: SeaChange Announces Departure of Company President Yvette Kanouf

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

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SeaChange Announces More Than $5 Million in Annualized Cost Reductions

broadcast industry technology trends, Broadcast technology vendor financials | Posted by Joe Zaller
Jan 31 2012

SeaChange announced that it has taken actions in the fourth quarter of fiscal year 2012 that it says will will result in more than $5m in annualized cost reductions.

These cost reductions come principally from headcount reductions related to streamlining operations and reducing the overall cost structure of the company. The Company will incur restructuring and severance charges in the fourth quarter reflecting these actions.

SeaChange CEO Raghu Rau commented, “As we realign our resources to focus on delivering on customer commitments, we have targeted operating cost reductions as well as some facility rationalization. It is important to note, however, that our commitment to research and development remains strong and we continue to invest heavily in innovative, next generation solutions that will provide significant competitive advantage to our customers.”

 

Related Content:

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

SeaChange Announces Q4 and Full Year 2011 Results

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 18 2011

Video on demand solution provider SeaChange International announced that its revenue in the fourth quarter of FY 2011 was $61.4m, an increase of 16% versus the same period a year ago, and an increase of 23% versus the previous quarter.  Non-GAAP revenue in the quarter was $56.8m, an increase of 5% compared to the same period a year ago.

GAAP net income for the fourth quarter was $10.9m, a significant improvement on the break-even results for the fourth quarter of last year, and a GAAP loss of $5.2m during the previous quarter.  Non-GAAP net income for the fourth quarter was $5.8m, compared with non-GAAP net income of $2.3m in the previous year’s fourth quarter.

The company attributed the changes in GAAP results to two deals that fourth quarter that “materially impacted its reported GAAP financial results but were excluded from its non-GAAP financial results.”

  • In December of 2010 SeaChange realized a $1.9m pre-tax gain when a company in which it held an equity stake was sold to Dell 

 

  • During the fourth quarter a SeaChange customer switched to another VOD equipment supplier, enabling SeaChange to recognize $4.6m in pre-paid maintenance revenue as a result of the deactivation notice

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Segment Performance:

  • Software revenue was $46.1m, an increase of 32% versus both the same period last year and the previous quarter.  The strong software results were helped by the accelerated recognition of $3.4m in maintenance revenue mentioned above.

 

  • Sales from the servers & storage segment were $8.8m, down 28% compared to the same period a year ago, and up 42% versus the previous quarter.  The company attributed the decrease in servers and storage revenue to lower VOD server shipments to North American customers partially offset by VOD server shipments to a customer in Latin America and a customer in Europe.

 

  •  Media services revenue was $6.4m, up 9% versus the same period last year, and down 21% versus the previous quarter.

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Full Year 2011 Results:

For the fiscal year ended January 31, 2011 GAAP revenue was of $216.7m, an increase of 7% versus fiscal 2010.  Non-GAAP revenue for the fiscal year was $216m, an increase of 6% versus fiscal 2010.

GAAP net income for fiscal 2011 was $29.5m, up from $1.3m in fiscal 2010.  Non-GAAP net income for the year was $13.7m, up from $8m last year.

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Related Content:

You can read the full SeaChange Q4 and FY 2011 earnings press release here.

You can read about SeaChange’s Q3 results here.

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

broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | 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.

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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.

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

Information about the company’s Q2 results are here.

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SeaChange Q2: Top Line Up 11%, But VOD Sales and Outlook Slump. Server + Storage BU to the Restructured

broadcast technology market research, Broadcast technology vendor financials | Posted by Joe Zaller
Sep 03 2010

Video-on-demand specialist SeaChange released their Q2 results on Thursday. Revenues for the quarter increased 11% to 51.6m, but were below the expectation of analysts who expected revenues to come in at around $54m. The company earned $3.5m, an improvement on the $376K loss it posted a year ago.

The higher top-line was driven by an increase in software revenue, thanks to the recent acquisitions of eventIS and VividLogic.  The company also said that higher VOD software maintenance revenue contributed to the increase in Software segment revenue.

However hardware sales declined 13% during the quarter, due to  lower VOD server shipments to North American and Latin American service providers offset partially by a large Broadcast server order shipped in a previous quarter and accepted by the customer in the 2011 fiscal second quarter. 

The company said that it expects lower VOD hardware demand to continue through the end of the fiscal year.

Company Chairman & CEO Bill Styslinger said that the company plans to restructure the server and storage business, and issued lower guidance for the company due to lower revenue in the server and storage revenue, combined with “software revenue challenges related to product commercialization and customer launch delays.”

Investors did not like this outlook, sending shares down sharply.

You can read the full SeaChange earnings press release here.

The Top 30 Improving Vendor Brands in Broadcast Technology, Ranked Globally and Regionally

broadcast technology market research, Broadcast Vendor Brand Research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Jun 07 2010

This is the second in a series of posts about the how the brands of broadcast technology vendors were ranked by respondents to the 2010 Big Broadcast Survey (BBS).

Each year as part of the Big Broadcast Survey (BBS), a global sample of broadcast professionals are asked to rank their opinion of a number of technology vendor brands on a wide range of metrics.  This information is used to create a series of reports, which through benchmarking and industry “league tables” enable these vendors to understand their competitive position in the market.

More than 5,600 people in 120+ countries participated in the 2010 BBS, making this the largest ever and most comprehensive study of the broadcast industry. In addition to measuring a variety of broadcast industry trends, more than 100 vendor brands (in 27 separate product categories) were evaluated by respondents.

Recently, I discussed how respondents to the 2010 BBS ranked The Top 30 Broadcast Technology Vendor Brands by Overall Opinion, Ranked, Globally and Regionally

Appearing in the top 30 of an overall opinion poll is obviously a good place for any vendor to be, but this only scratches the surface of how the market views a brand. 

While indicative of the market’s view, these overall opinion rankings are presented as a snapshot in time.  They also provide a somewhat one-sided view of how brands are regarded because they take only positive perceptions into account.  In order to get a better understanding of how broadcast technology vendor brands are perceived, it is necessary to look at both the positive and negative opinions of brands, and to take into account how these opinions have changed over time. 

One way to do this is to ask people who have an opinion of a brand, how their opinion of that brand has changed over time – i.e. has it improved, declined or stayed the same. 

When you do this, you can get some interesting results.  It turns out that some brands are more polarizing than others, with different respondents having very different opinions.  For example, here’s a chart from the 2009 Big Broadcast Survey. 

 

Notice that in the above table, the company that was ranked #1 for “got better” also ranked #1 for got worse.

Given these results, it is perhaps more useful to calculate the Net Change in Overall Opinion for each brand, which is calculated by using the following formula:

GB-GW/# of total respondents = Net Change in Brand Image

In other words, the percentage of respondents who said a brand “got worse” is subtracted from the percentage of respondents who said their opinion of a brand had “got better” (ignoring the “stayed the same” number).

This takes into account both the positive and negative perceptions of brands, along with how these opinions have changed over time.  It also presents a more balanced view of which brands are getting better and which are getting worse in the minds of market participants. 

Because some brands are polarizing (as seen in the example above), it’s possible that a strong “got better” response might be cancelled out by a strong “got worse” response.  As a result some companies who were rated in the top 30 on just the “got better” score were not included in the global or regional top 30 because their high “got worse” score dragged down their overall result.  At the same time, a few of the companies with high “got worse” scores still made the top 30 list because these negative scores were cancelled out by even higher “got better” scores. 

In order to arrive at the Net Change in Overall Opinion, research participants were asked whether their opinion of various brands had “got better”, “got worse” or “stayed the same” over the past 2-3 years.

The results of this enquiry are shown below in two ways:

  • An overall industry “league table” that shows the 30 highest ranked vendors for the metric “Net Change of Overall Opinion.”  The data in this chart is broken out globally and regionally. 

 

  • An analysis of the “frequency” of appearance in the “Net Change of Overall Opinion” league table.”

 

The top 30 ranked brands for Net Change of Overall Opinion are shown below for both the global sample of all respondents as well as for all respondents in each of the geographic regions.  

 

 In all cases, these results are shown in alphabetical order, NOT in the order in which they were ranked by respondents to the survey.      

 

Question: Has your opinion of the following brands improved or declined over the past 2 years in relation to the broadcast technology products / services they provide?

Interestingly, a total of 65 broadcast technology vendor brands are included in this table, demonstrating the strong variation in opinion change based on geographic segmentation of respondents.

In terms of frequency of appearance in this table:

  • 3 brands appear four times, meaning they were ranked in the top 30 globally and in each geographic region. It is possible
  • 10 brands appear three times
  • 26 brands appear two times
  • 26 brands appear once, which demonstrates that some brands are strongest in one geographic area

 

Analysis of the data shows that are some clear market leaders on a global basis, while others are strong on a regional basis. 

A breakdown of how many times each company appears in the ranking shows how many times each brand appears in the chart above.

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Brands appearing four times:

  • Barco, IBM, Ikegami

 

Brands appearing three times:

  • Avid, Chyron, For-A, JBL, JVC, Mackie, Motorola, Siemens, Telex, Yamaha

 

Brands appearing two times:

  • AKG, Audio-Technica, Axon, Dayang, Dolby, Echolab, Electro Voice, EMC, EVS, Fujitsu, Grass Valley, Harmonic, Harris, Klein + Hummel, Orad, Pesa, Pharos, Quantel, RTS Intercom Systems, SeaChange, Shure, Snell, Solid State Logic, Sundance, Tandberg / Ericsson, Tektronix

 

Brands appearing once:

  • Accenture, AMS-Neve, beyerdynamic, Dalet, Evertz, Focal, HP, KRK Systems, Leader Instrument, Marshall Electronics, Miranda, Net Insight, Neumann, Omneon, Omnibus, Pilat, Pixel Power, Quantum, Rohde & Schwarz, Ross Video, S4M, Screen Service, Sintecmedia, Utah Scientific, Vizrt, Wheatstone

 

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Analysis of overall opinion by region:

The table below shows the global and regional performance for each brand in the top 30 ranking of overall opinion. 

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The frequency chart shows some interesting geographic variation in the data, which is highlighted below.

 

Only Global

Interestingly a the following 13 appear in the top 30 Net Change in Overall Opinion for the global sample, but not in any of the regions. 

  • Accenture, AMS-Neve, Focal, KRK Systems, Leader, Net Insight, Omnibus, Pilat Media, Pixel Power, Quantum, Sintecmedia Utah Scientific, Wheatstone

There a number of possible explanations for this.  For example these companies may have fared well in each of the regions, but not well enough to make the top 30.  However when all responses are aggregated, there positive data propels these brands to the top 30 on a global basis.  It is also possible that these brands scored well on a regional basis, but that the regional sample was insufficient to be included in the regional rankings.

 

All regions, but not global

Interestingly, for four brands the converse of the above also occurred – i.e. these brands made the top 30 list for Net Change of Overall Opinion in each of the three regions, but not in the global sample.

  • Avid, For-A, JBL, Yamaha

Again this is due to a variety of factors including the aggregate strength of certain brands, coupled with sample sizes.

 

Global + one region

Nine brands managed to achieve a top 30 ranking in the global Net Change in Overall Opinion league table, despite being in the top 30 of only one of the three geographic regions.

  • Dayang, Echolab, Electrovoice, Fujitsu, JVC, Motorola, Pesa, Quantel, Sundance

 

 

 

Regional Variation

The following brands did not make the top 30 in the global league table of overall opinion, but they did appear in the top 30 overall opinion ranking in one of the geographic regions:

 

Only EMEA

Beyerdynamic, Dalet, Neumann, S4M,

 

Only Asia

Evertz, HP, Miranda, Omneon, Rohde & Schwarz, Ross Video, Screen Service

 

Only Americas

Marshall Eelctronics, Vizrt

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Please keep in mind when reviewing this information that all data these charts are presented in alphabetical order, not in the order brands were ranked by respondents to the 2010 BBS.  Also, the charts in this posting measure the responses of all 2010 BBS respondents, regardless of their company type, company size, geographic location, job title and budget for broadcast technology products.  

In order to get full value from this data, it is necessary to evaluate these results on a granular basis.  If you would like more information, please contact Devoncroft Partners.

This article is based on the findings from the 2010 Big Broadcast Survey (BBS), a global study of industry trends, technology purchasing behavior and the opinion of vendor brands.  With more than 5,600 people in 120+ countries participating, the 2010 version of the BBS is the largest and most comprehensive market study ever done in the broadcast industry.

2010 Syndicated Broadcast Technology Market Research Now Available

broadcast technology market research | Posted by Joe Zaller
Mar 05 2010

Reports from the 2010 Big Broadcast Survey (BBS), conducted by Devoncroft Partners, are now available for purchase.

The 2010 BBS is the largest ever and most comprehensive market study of the broadcast industry. More than 5,600 broadcast professionals in 120+ countries participated in the project.

Reports derived from BBS data deliver insight into the opinions and attitudes of key technology buyers including broadcasters, playout centers, cable/satellite/ IPTV operators, radio stations, recording studios and more. This includes industry trends; purchase intent and buying behavior; major project plans; products being evaluated for purchase.

2010 BBS reports also provides detailed opinions of 148 broadcast technology vendor brands in 27 separate product categories (see below for details)

For more information about the available reports and their contents, please follow this link.

 

Product Categories Covered in 2010 BBS reports:

 

Vendor Brands Covered in 2010 BBS reports: