SeaChange International expects to see sales for its fiscal year ending January 2011 to increase as much as 17% over the current fiscal year, driven by strong video-on-demand software shipments and additional wins in its media services group.
The Acton, Mass.-based VOD software and hardware vendor provided the forecast Wednesday in reporting results for the quarter ended Oct. 31. SeaChange had $53.3 million in total revenue for the period, up 2.8%, while net income fell to $700,000, compared with $3.4 million a year ago.
"We are pleased to report a solid quarter of financial performance marked by double-digit percentage revenue increases in our VOD product lines and media services business segment," SeaChange chairman and CEO Bill Styslinger said in announcing the results.
SeaChange shares closed up 2.9% on Thursday, to $6.00, after jumping more than 12% in earlier trading.
Styslinger, providing a preliminary outlook for fiscal 2011, said the company is targeting revenue for the next fiscal year to be $225 million to $235 million. For the fiscal year to end Jan. 31, 2010, SeaChange expects revenue to be roughly flat with the previous year's $201.8 million.
In addition to VOD software sales in North America, Styslinger said revenue from eventIS Group -- the Netherlands-based VOD company SeaChange acquired in September -- is expected to contribute to growth in fiscal 2011.
SeaChange's servers and storage segment was the highlight in the most recent quarter, with sales up 19% year-over-year to $12.4 million, while the media services group boosted revenue 35% to $5.2 million. By contrast, the company's software segment dropped 16%, to $19.2 million.
According to SeaChange, higher VOD server revenue in the quarter was due primarily to increased server shipments to Comcast in support of its next-generation VOD architecture rollout, code-named Project Infinity.