SeaChange Trims Workforce In Q4
Vendor Says It Will Save $5 Million Annually from Layoffs, Other Cost Reductions
By Todd Spangler -- Multichannel News, 1/31/2012 5:47:23 PM
SeaChange International cut an unspecified number of jobs in its fiscal fourth quarter ended Jan. 31, which along with other cost-saving measures will save more than $5 million per year, the company announced Tuesday.
The cost reductions are primarily from headcount reductions related to streamlining operations and reducing the company's overall cost structure, SeaChange said.
SeaChange spokeswoman Tammy Snook declined to disclose how many employees were laid off but said they were in multiple locations and primarily in sales, general and administrative functions throughout the quarter. The cuts did not affect R&D operations, she said.
SeaChange is not closing any facilities but is writing down underutilized facilities that the company is putting up for sale, according to Snook.
A year ago SeaChange, a provider of video-on-demand, multiscreen video and advertising solutions, reported $48.8 million in SG&A costs for the fiscal year ended Jan. 31, 2011, with $216.7 million in total revenue and net income of $29.5 million.
"As we realign our resources to focus on delivering on customer commitments, we have targeted operating cost reductions as well as some facility rationalization," SeaChange interim CEO Raghu Rau said in a statement. "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."
SeaChange said it will incur restructuring and severance charges in the fourth quarter reflecting the layoffs and other cost-cutting moves.
Separately, SeaChange founder, chairman and CEO Bill Styslinger left the company back in November. Rau, a member of the board, assumed CEO duties on an interim basis.
Earlier this month, SeaChange named a new chief financial officer, Michael Bornak, replacing Kevin Bisson, who left the company to join Mercury Computer Systems as CFO.
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