SeaChange sees revenues, profits shaved for Q3

Joseph O'Halloran | 05-12-2012

Even though it represents a solid performance with respect to an overall cost reduction effort, Sea Change has reported year-on-year falls in profits and revenues for its third quarter.
For the quarter ended 30 November, the global multi-screen video software firm reported revenue of $39.2 million and non-GAAP operating income of $2.9 million. This compared with $42.9 million and 5.5 million respectively for the year earlier.
SeaChange revealed that GAAP third quarter fiscal 2013 results included non-recurring charges consisting primarily of severance and restructuring charges, while the third quarter fiscal 2012 results had non-recurring charges related to professional fees associated with strategic alternatives and earn-out costs from acquisitions. For the first nine months of fiscal 2013, the company posted revenues of $112.6 million and non-GAAP operating income of $6.4 million compared with $121.5 million and $12.2 million in the same period a year earlier.
Yet despite these less than spectacular results, Raghu Rau, chief executive officer, SeaChange, said he was pleased with the quarterly posting which he said came in at the high end of its revenue guidance and “significantly exceeded” non-GAAP operating income guidance.
Looking forward, Rau added: “Based on the momentum we are seeing in our business, we are increasing our full year fiscal 2013 revenue and earnings guidance. We anticipate that our full year fiscal 2013 revenue will be in the range of $155 million.”