SeaChange Takes a Hit

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A sharp drop in quarterly revenue swung SeaChange International Inc. into the red, as the company reported a net loss of $6.6 million on revenue of $26.2 million in its second fiscal quarter ending July 31.

Revenue dropped 39% from 2004’s $43 million, when the company posted net income of $3.3 million.

Video-on-demand revenues totaled $12 million in the quarter versus $25.2 million a year ago.

SeaChange executives blamed the drop in slowdowns across the board. CEO Bill Styslinger said in a prepared statement, “Although telco initiatives are moving forward around the world, their VOD deployments are later than we anticipated. In the United States, cable operators' VOD-system spending has slowed. However, we do expect that demand will increase as they extend their digital-simulcast installations.”

Styslinger added, “We believe our revenues for the year will be less than our previously issued guidance of $160 million.” But he expects the second half to surpass first-half revenue of $57.7 million.

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