Revs recede but tide turns on SeaChange losses
Parent Category: News | 06-12-2013
A return to GAAP profitability but on slightly less revenue is the top line picture in third quarter of 2014 for multiscreen video services provider SeaChange.
The company reported third quarter fiscal 2014 revenue of $37.8 million and non-GAAP operating income of $2.9 million, compared with Q32013’s $39.2 million and $2.9 million respectively. US GAAP operating income was $0.5 million and this compared with a GAAP operating loss for the third quarter of fiscal 2013 of $1.6 million.
For the first nine months of fiscal 2014, the company posted revenues of $110.7 million and non-GAAP operating income of $7.5 million, compared with respectively $112.6 million and $6.4 million in the same prior period.
"We continue to execute on our plan to deliver our new generation of products globally, which have grown 62% year over year to represent 45% of all product revenues, compared to 25% a year ago," said Raghu Rau, CEO, SeaChange. "Our opportunity funnel remains very robust and we continue to respond to strong interest in our Nucleus gateway software and Adrenalin by many of the world's leading operators."
Rau also pointed to the commercial launch of the Adrenalin multiscreen platform by a large European telco and a Scandinavian cable operator during the quarter. Yet he also conceded that the firm was continuing to experience some delays in receiving final product acceptances and some agreements expected for the third and fourth quarter are experiencing delays in signing. This he said was due to expanded scope and the complex nature of the customer decision making process.