SeaChange Eyes End of Restructuring Process

Company expects to reduce workforce to about 300 by end of fiscal 2018
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SeaChange International, a company that specializes in multiscreen video interfaces and backoffice systems, said it expects to complete a cost-cutting restructuring process in the first half of fiscal 2018.

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When the restructuring is complete, the company’s workforce will be reduced to about 300 people, company CEO Ed Terino said. That compares to the 660 employees SeaChange had at the end of fiscal 2016, he said.

The restricting has also included a consolidation of some operations, including a reduction of SeaChange’s presence in the Philippines, and a shift of engineering and technical support to its operations in Poland. The company has also been phasing out its legacy products along with other moves aimed at streamlining the business.

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“We believe that these reductions will enable SeaChange to return the profitability in the second half of fiscal 2018,” Terino said.

For fiscal Q4 2017, SeaChange posted a GAAP loss from operations of $25 million (71 cents per basic share) on revenues of $23.8 million, down from $27.2 million a year earlier. The Q4 results included non-GAAP charges of $22.8 million, which factored in $1.1 million in severance and other restructuring costs.

During Q4, SeaChange closed on two migrations from Axiom, its legacy video backoffice system, to its next-gen multiscreen Adrenalin platform. More than 20 other customers are quoted for Adrenalin migrations, Terino said.

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Terino said SeaChange will expand the scope of NitroX, its multiscreen interface. In addition to supporting RDK-based and legacy set-tops, Android boxes, and mobile devices, it will also be outfitted to support OTT devices such as Apple TV boxes, Chromecast streaming adapters, Amazon Fire TV devices, Roku boxes and connected TVs.

“We believe our end-to-end solution with NitroX will serve as our main entry point into new cable telco and mobile service providers that are looking to deploy end-to-end multiscreen video delivery platforms,” Terino said.