SeaChange International Reports First Quarter Fiscal 2019 Results

SeaChange International Inc (NASDAQ:SEAC) reported first quarter fiscal 2019 revenue of $14.9 million and a U.S. GAAP loss from operations of $5.1 million or $0.15 per basic share as compared to first quarter fiscal 2018 revenue of $16.7 million and U.S. GAAP loss from operations of $5.5 million or $0.16 per basic share.

As quoted in the press release:

The Company’s U.S. GAAP first quarter fiscal 2019 results included non-GAAP charges of $1.3 million, which consisted primarily of stock-based compensation of $0.9 million and amortization of intangible assets from prior acquisitions of $0.4 million, while first quarter fiscal 2018 results included non-GAAP charges of $3.8 million, which consisted primarily of severance and other restructuring costs of $2.1 million, stock-based compensation of $0.9 million, amortization of intangible assets from prior acquisitions of $0.6 million and a provision for loss contract of $0.2 million. The non-GAAP loss from operations in the first quarter of fiscal 2019 was $3.8 million, or $0.11 per basic share, compared to the first quarter of fiscal 2018 non-GAAP loss from operations of $1.7 million, or $0.05 per basic share.

Ed Terino, Chief Executive Officer, SeaChange, said, “In the first quarter of 2019, we delivered solid results at the higher end of our guidance for both the top and bottom line, and are affirming our outlook for the full fiscal year.  Our partner program, focused on both channel and technology partners, is generating increased opportunities, as we strengthen our pipeline in new market segments and geographies.  As a result, we are seeing greater revenue potential in Latin and South America, and Asia Pacific.”

Terino continued, “Just last week, we launched several major new product initiatives designed to drive revenue growth for fiscal 2019 and beyond.  These products include our new solutions portfolio, called cFlow™, which equips video providers with a comprehensive set of workflow, meta-data, merchandizing, monetization, and viewer experience management tools for creating personalized viewing or ‘indivisual™’ experiences. cFlow creates an easily deployable ‘video personalization pipeline’ that can increase viewer engagement and monetization, helping our partners navigate the industry-wide march towards personalization and positioning SeaChange for continued market leadership and growth.  We also launched PanoramiC™, a powerful, cloud-based end-to-end solution that is a pre-integrated combination of cFlow elements with best-of-breed components from partners to create a complete OTT platform, and have been thrilled with the early customer and partner response.”

Peter Faubert, Chief Financial Officer, SeaChange, said, “Our financial results in the first quarter of fiscal 2019 establish a platform that we can leverage as we generate higher revenues in the remainder of the year. As expected, we incurred consulting costs during the quarter related to one-time projects including adoption of new revenue recognition standards ASC 606. We are confident that with these costs behind us, operating expenses will be more normalized in the back half of this fiscal year, enabling us to resume operating profitability.”

Faubert added, “We continue to successfully manage working capital, and our guidance for the year remains unchanged.”

SeaChange ended the first quarter of fiscal 2019 with cash, cash equivalents, restricted cash and marketable securities of $49.1 million, and no debt outstanding.

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