SeaChange International disclosed this month that it is making deeper cuts as the multiscreen video tech and software company moves ahead on a plan to return to profitability.
In an 8-K document filed Feb. 3, SeaChange said it was implementing cost-savings moves tied to its North American operations and a workforce reduction that will result in annualized cost savings of about $8.1 million, once complete. Those actions will also result in restructuring and severance charges of about $1.5 million, the filing added.
SeaChange did not say how many people were to be affected by the reduction mentioned in the 8-K, but SeaChange CEO Ed Terino told the Worcester Business Journal that the company has cut more than 200 jobs on a global basis within the past year. He said SeaChange now has fewer than 500 employees, down from the more than 700 that were with the company when Terino took over the CEO post in April 2016.
SeaChange on Wednesday issued this statement from Terino to Multichannel News:
“The actions over the past year associated with our turnaround, including recent reductions in the US, will provide anticipated cost savings of over $30M as we continue to keep our focus on video service providers, while improving operations and targeting a return to profitability within our current fiscal year.”
SeaChange is trying to pull off that turnaround amid an ongoing tough stretch. In December, it announced a 31% drop in revenues driven largely by lower service revenues, but said then that more than 20 customers were “quoted for upgrades” to Adrenalin, a multiscreen video backoffice that succeeds SeaChange’s Axiom platform. Terino also noted then that Rave, SeaChange’s OTT platform, has about 30 opportunities in the pipeline, and that the company recently NitroX, a multiplatform system that delivers a common UI across multiple devices, including set-tops, Android TV-powered boxes, smartphones and tablets.
The 8-K also detailed the recent promotion of Jonathan Rider to SVP and COO that includes an annual base salary of $325,000 per year, a one-time equity award of 100,000 stock options, eligibility to participate in an annual bonus program worth up to $260,000 and a change-in-control severance agreement.