SeaChange Drives VOD Revenue Increase

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Rising revenue from on-demand products gave SeaChange International Inc. a decent earnings picture for the quarter ending April 30 despite taking a net loss and having to make an $8 million payment in April related to settlement of a patent litigation against nCUBE Corp. (now owned by C-COR Inc.)
The digital-video-systems vendor posted a net loss of $4.4 million, or $0.15 per share, versus $600,000 ($0.02) in the year-ago period. Revenue rose 5.5% to $33.2 million from $31.5 million. Earnings before interest, taxes, depreciation and amortization totaled a loss of $1.9 million compared with a $400,000 loss in the previous-year quarter.
The $8 million cash payment related to the nCUBE suit did affect SeaChange’s cash position, but it did not contribute to the net loss. Overall, SeaChange executives were encouraged by the buoying revenue picture.
"Our [video-on-demand] systems revenues in the first quarter nearly doubled from the fourth quarter of last year, and they have reached their highest level since the second quarter of fiscal 2006," CEO Bill Styslinger said in a prepared statement.
"We expect to see VOD revenues continue to grow significantly in the second quarter, and we believe SeaChange will have a strong second quarter with a return to positive EBITDA,” he added.

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