Joseph O'Halloran | 06-09-2013
SeaChange has revealed a bullish second quarter of its financial year with a 20% increase in product revenue and a turnaround in operating income.
For its second quarter fiscal 2014, the multiscreen video services provider reported revenues of $37.4 million, non-GAAP operating income of $3.4 million and GAAP operating income of $0.5 million. This compared with Q2 2013 where it had revenue of $36.7 million, non-GAAP operating income of $1.2 million and a GAAP operating loss of $7.5 million respectively. In the latest quarter the company posted product revenue of $16.2 million, a year-on-year increase of 20%.
During the first half of fiscal 2014, SeaChange banked $72.9 million in revenues, generating a non-GAAP operating income of $4.6 million compared to revenues of $73.4 million and non-GAAP operating income of $3.5 million in the same prior period. The company posted a GAAP operating loss for the first six months of fiscal 2014 of approximately $1.3 million compared to GAAP operating loss of $8.7 million for the same period in the previous year.
“We are pleased that, in the second quarter, we achieved sequential and year-over-year increases in revenues and operating income and substantial growth in gross margins, which exceeded 57%,” said Raghu Rau, chief executive officer, SeaChange. “Our results would have been even better but for delays in receiving timely acceptance within the quarter for some of our new generation software products because of ongoing custom integrations with third-party products. We continued to make significant market progress … We have also announced a large number of deployments, domestically and internationally, for our market-leading content management solutions.”
The company noted that it had enjoyed success with rollouts of its Adrenalin management product with large US cable TV operators, and also orders of the product as well as VOD advertising acceptance by a large European telco. It also claimed wins for its Nucleus gateway software.