Posts Tagged ‘SeaChange’

SeaChange Reports Lower Revenues in Q2 Fiscal 2013

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Sep 13 2012

SeaChange reported that its revenue for the second quarter of fiscal 2013 was $36.7m, down 4% versus the same period a year ago. SeaChange said the results reflect the impact of the sale of both its broadcast servers and storage and its media services businesses in May 2012.

The GAAP loss from operations for the second quarter of fiscal 2013 was approximately $6.8m or $0.21 per share compared to GAAP income from operations of $777,000 or $0.02 per share for the same period a year ago.

Non-GAAP operating income for the quarter was $1.2m or $0.04 per share down from $4.2m or $0.13 per share.

The results were below the expectations of equity analysts, who were on average looking for revenue of $39.5m, and EPS of $0.13 per share before charges, and $0.08 per share after charges.

SeaChange ended the second quarter of fiscal year 2013 with cash, cash equivalents and marketable securities of $107.1m compared to $93.8m at the end of fiscal 2012.

“Throughout SeaChange’s second quarter we have executed on our strategy. We continue to reduce our overall sales, general and administrative costs and manufacturing costs and further streamline our organization. We have recently announced design wins for our next generation Adrenalin video back office platform with two major U.S. cable multiple system operators, and our Infusion advanced advertising platform with large service providers in both North America and Europe,” said Raghu Rau, SeaChange CEO. “Our focus over the next two quarters will be to deliver on commitments to our customers, increase revenue, improve the bottom line and drive shareholder value.”

 

Outlook:

Rau said that the company “anticipate our third quarter fiscal 2013 revenues to be in the range of $37 million to $40 million, and non-GAAP operating income to be in the range of $0.04 to $0.06 earnings per share. We also anticipate our full year fiscal 2013 revenue to be in the range of $152 million to $158 million which is within our previously announced guidance and non-GAAP operating income to be in the range of $0.31 to $0.37.”

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Related Content:

Press Release: SeaChange International Reports Second Quarter and Six Month Fiscal 2013 Results

More Broadcast Vendor M&A: SeaChange Sells On Demand Group to Avail-TVN for $27 Million

Avail-TVN Closes $100 Million Carlyle-Led Funding Round, Buys On Demand Group From SeaChange

SeaChanges Completes Spin-Off of Broadcast Server and Storage Business to XOR Media

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Avail-TVN Closes $100 Million Carlyle-Led Funding Round, Buys On Demand Group From SeaChange

Broadcast Vendor M&A | Posted by Joe Zaller
May 21 2012

Avail-TVN announced today that it has closed a $100m financing round, led by private equity firm The Carlyle Group.

Carlyle, which is now Avail-TVN’s largest investor, joins existing investors Columbia Capital, Valhalla Partners, Novak Biddle and Pioneer Ventures.

Avail-TVN said it will use the investment to fund international expansion, develop new products, and finance the purchase of UK-based On Demand Group from SeaChange for $27m. The On Demand Group is a provider of video on demand services to some of the biggest television brands outside of the United States.

For SeaChange, the deal to sell On Demand Group is the latest in a series of actions aimed at transforming it into a pure-play software vendor. Earlier this year SeaChange announced a $5m cost cutting program earlier this year, parted ways with its president, made acting CEO Raghu Rau’s position permanent, and spun off its broadcast hardware business to newly formed XOR Media.

“We see tremendous revenue value creation opportunities in the global digital media space as technology continues to revolutionize the way consumers access premium video entertainment,” said William Darman, principal, The Carlyle Group. “Avail-TVN is an innovator helping organizations across the value chain to continue to monetize video content in new ways and this joint investment by The Carlyle Group’s U.S. and European growth funds is testament to the growth prospects we see in this sector over the coming years.”

“With the addition of the On Demand Group, Avail-TVN becomes the largest provider of digital video in the world, reaching more households in more countries than any other company in the space,” said Will Smales, associate director, The Carlyle Group. “As the digital video market continues to evolve and mature, the company is poised to capitalize on opportunities around the globe.”

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Related Content:

Press Release:  Avail-TVN Raises $100 Million of Financing To Fund Global Expansion and Domestic Service Development; Acquires On Demand Group  http://dcft.co/KsP0zD

More Broadcast Vendor M&A: SeaChange Sells On Demand Group to Avail-TVN for $27 Million

Press Release: SeaChange Announces Sale of On Demand Group to Avail-TVN 

SeaChanges Completes Spin-Off of Broadcast Server and Storage Business to XOR Media

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

 

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More Broadcast Vendor M&A: SeaChange Sells On Demand Group to Avail-TVN for $27 Million

Broadcast Vendor M&A | Posted by Joe Zaller
May 21 2012

SeaChange announced that it has sold its media services company, On Demand Group, to Avail-TVN for $27m on a cash-free, debt-free basis. U.K.-based On Demand Group, specializing in content aggregation and management of VOD services, becomes part of Avail-TVN effective immediately.

The deal is the culmination of a series of actions aimed at helping SeaChange transition its business to a software-centric business.  Earlier this year the company announced a $5m cost cutting program earlier this year, parted ways with its president, made acting CEO Raghu Rau’s position permanent, and spun off its broadcast hardware business to newly formed XOR Media.

“This sale is part of the ongoing execution of our strategy to transform SeaChange into a pure-play software company, while generating significant cash for our business and improving shareholder value,” said Rau.   “We can now focus our efforts on strengthening our competitive advantage in delivering next generation multi-screen video software solutions to cable, IPTV and mobile operators worldwide.”

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Related Content:

Press Release: SeaChange Announces Sale of On Demand Group to Avail-TVN 

SeaChanges Completes Spin-Off of Broadcast Server and Storage Business to XOR Media

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

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SeaChanges Completes Spin-Off of Broadcast Server and Storage Business to XOR Media

Broadcast Vendor M&A | Posted by Joe Zaller
May 11 2012

SeaChange announced that it has completed the sale of its broadcast server and storage business. The company said the transaction, which is essentially a carve-out sale of the company’s hardware business to newly formed XOR Media, was led by an unnamed leading US-based venture capital firm.  Terms of the transaction were not disclosed.

The deal is the culmination of a series of actions aimed at helping SeaChange transition its business to a pure-play software company.  Earlier this year the company announced a $5m cost cutting program earlier this year, parted ways with its president, made acting CEO Raghu Rau’s position permanent, and spun off its broadcast hardware business to newly formed XOR Media.

“Now that the transaction is complete, we can focus on our core software and services operations,” said  Rau.  The company’s software offering includes back office, video streamers, gateway software and advertising solutions.

SeaChange will become a reseller of XOR Media, but will also work with other server and storage vendors.  SeaChange says it will continue to provide customer service and support to all of its VOD streaming service provider customers, and will also provide customer service and support to any customers who purchase storage products as part of its reseller agreement with XOR Media.

XOR Media CEO Zheng Gao stressed that the new company was focused on maintaining its customer base. “XOR Media is a new business entity in name, but the same team and processes are here to ensure business continuity for our customers,” he said.

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Related Content:

Press release: SeaChange Completes Sale of Its Broadcast and Storage Business

Press release: SeaChange International Names Raghu Rau Permanent Chief Executive Officer

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

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

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SeaChange Revenue Falls 11 Percent in Transitional FY 2012

Broadcast technology vendor financials, Quarterly Results | 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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More Broadcast Vendor M&A: SeaChange Sells Broadcast and Storage Business to Financial Buyers

Broadcast Vendor M&A | Posted by Joe Zaller
Mar 21 2012

VOD specialist SeaChange International announced that it has signed a definitive agreement to sell its broadcast server and storage business to a group of financial investors, led by a leading US-based venture firm a venture capital group.  Terms of the transaction were not disclosed.

The deal enables SeaChange, which has had a recent management shuffle and has embarked on a cost cutting exercise, to become a pure-play software and services company focusing on back office, video streamers, gateway software and advertising solutions.

The assets of the SeacChange broadcast and storage business are now part of a newly formed company called XOR Media, which will be headed by Zheng Gao who was previously the president of the SeaChange storage and servers business.

SeaChange will become a reseller of XOR Media, but will also work with other server and storage vendors.  SeaChange says it will continue to provide customer service and support to all of its VOD streaming service provider customers, and will also provide customer service and support to any customers who purchase storage products as part of its reseller agreement with XOR Media.

“This divestiture is an important part of our strategy to transform SeaChange into a pure play software company, significantly reduce our overall cost structure, and strengthen our ability to compete in delivering next generation multiscreen video solutions, while generating cash, said SeaChange CEO Raghu Rau. “It’s important to note that this sale is not a parting of ways between SeaChange and the new company XOR Media. We will continue to work together to offer our customers a complete solution. We see this divestiture as a step toward a future relationship – not the ending of one,” Rau added.

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Related Content:

Press Release: SeaChange to Divest its Broadcast and Storage Business

SeaChange Executes Separation Agreement with Former President

SeaChange President Departs, Position Will Not be Replaced

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 Executes Separation Agreement with Former President

broadcast technology market research | Posted by Joe Zaller
Feb 27 2012

VOD specialist SeaChange has executed a separation with former company president Yvette Kanouff. The information was disclosed in a filing with securities regulators.

Under the terms of the Separation Agreement, in exchange for Ms. Kanouff’s release of claims, SeaChange will:

  • pay Ms. Kanouff $400,000, equal to her annual base salary, in twice-monthly installments on SeaChange’s regular payroll schedule for a period of twelve months;
  • satisfy a previously granted retention award by the payment of $75,000 in cash and the accelerated vesting of the restricted stock unit for 3,000 shares of SeaChange’s common stock;
  • permit Ms. Kanouff to remain eligible to receive an award under SeaChange’s fiscal year 2012 compensation and bonus plan, with such payments, if any, to be made at the time and under the terms as would have applied had Ms. Kanouff remained actively employed by SeaChange, provided that 8,330 of such RSUs shall be awarded to Ms. Kanouff on execution of the Separation Agreement
  • pay for up to 12 months (or such earlier period as Ms. Kanouff becomes eligible for healthcare coverage from a new employer) of her coverage under comparable medical and dental benefit plans to those by which she was covered immediately prior to the termination of her employment.

 

Kanouff remains subject to the terms of an Employee Noncompetition, Nondisclosure and Developments Agreement with SeaChange previously executed by Ms. Kanouff with SeaChange, pursuant to which there is a one-year post-employment noncompetition and nonsolicitation obligation.

 

 

Related Content:

SeaChange President Departs, Position Will Not be Replaced

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 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

 

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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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