SeaChange Posts Profit On Cable Spending
VOD Vendor Boosts Revenues 15% And Swings to $1.5 Million Profit
By Todd Spangler -- Multichannel News, 9/4/2008 3:30:00 PM
Video-on-demand vendor SeaChange International, citing strong spending from North American cable operators, swung to a $1.5 million profit for the quarter ended July 31 after posting a net loss in the year-ago period and reported 15% growth in revenue.
Revenues for the quarter were $50.7 million, compared with $44.2 million a year prior. SeaChange’s net income of $1.5 million, or 5 cents a share, compared with a net loss of $7.9 million, 27 cents a share, for the same period last year (which included $6 million of expenses related to layoffs and charges related primarily to capitalized software licenses).
SeaChange president and CEO Bill Styslinger (pictured) said it was the first time the company had exceeded $50 million in quarterly revenue.
“We’re particularly pleased that the first commercial deployment of flash memory servers by two of our largest North American cable television customers significantly contributed to our VOD server revenue this quarter,” Styslinger said in a statement.
SeaChange’s cable customers include Comcast, Cox Communications, Time Warner Cable and Cablevision Systems.
SeaChange expects that revenue for all of fiscal 2009, which ends next January, will be approximately 10% higher than fiscal 2008 and that the company will be profitable for the second half of the year.
“Our confidence in our financial expectations for the rest of fiscal 2009 lies in continued strong spending on VOD and advertising insertion software-related products by our core North American cable and telephone customers, as well as continued focus on controlling our selling, general and administrative expenses,” Styslinger said in prepared remarks.
