SeaChange Posts 1Q Loss

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Lower demand for video-on-demand servers from U.S. cable operators sent SeaChange International Inc. into the red, with the company reporting a slight net loss of $578,000 on revenue of $31.5 million in the first quarter of 2005, compared with net income of $3.2 million on revenue of $41.6 million in the year-earlier period.

VOD-system revenues dropped from $25.2 million to $15.7 million year-over-year in the quarter. Total systems revenues for the quarter were $20.1 million, of which $2.6 million was from advertising systems and $1.8 million from broadcast systems in addition to the VOD revenue.

The vendor said it was reducing full-year revenue guidance from $190 million to $160 million.

“We’re very confident about our position in the global market for on-demand television,” CEO Bill Styslinger said in a prepared statement. “Recently, demand for VOD systems with U.S. cable operators has slowed, and the deployments by U.S. telcos will be later than we originally anticipated. However, as U.S. cable operators begin their digital-simulcast deployments and the telco deployments begin in earnest, we expect demand for VOD systems, software and services to increase significantly.”

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