SeaChange to Rave on OTT after tough Q3
| 04 December 2014
Just as it has posted somewhat disappointing Q3 results, multiscreen video technology provider SeaChange is to deliver what it calls every form of premium video experience in a new over-the-top (OTT) platform.
For the third quarter of its financial year ended 31 October 2014, SeaChange reported revenue of $30 million and US GAAP loss from operations of $5.9 million. These compared with third quarter fiscal 2014 revenue of $37.8 million and US GAAP income from operations of $0.5 million. Non-GAAP loss from operations was $2.1 million, compared with income in Q3 2014 of $2.9 million. The company noted that the third quarter fiscal 2015 results included non-GAAP charges of $3.7 million, which consisted primarily of stock-based compensation, amortisation of intangible assets from prior acquisitions, and severance and other restructuring costs.
SeaCHRAveFor the first nine months of fiscal 2015, the company posted revenue of $84.2 million and a US GAAP loss from operations for the first nine months of fiscal 2015 of approximately $21.2 million. These compared with revenue of $110.7 million and US GAAP loss from operations of $0.8 million for the same prior period in fiscal 2014. The Company posted a non-GAAP loss from operations of $12.1 million, compared with non-GAAP income from operations of $7.5 million in the same prior period.
Yet despite these figures, the company regarded itself as fair set for a successful 2015. "Connected consumer devices that can stream premium IP video through the cloud are changing the business of television and SeaChange continues to show how it's empowering service providers to capitalise on this shift," insisted CEO Jay Samit. "Our on-going success with our cloud multiscreen strategy is demonstrated with BBC Worldwide, which has selected SeaChange to bring the BBC Store to two additional countries beyond the UK and Algar Telecom, which has significantly expanded its cloud service trial."
Specifically the company is focusing in on the opportunities given by supporting OTT rollouts, especially premium services. The new SeaChange Rave is designed to address consumer preferences for OTT video and TV, including on-demand, time-shifted, live and downloaded content enjoyed on any device.
The platform will be targeted at studios, broadcasters, networks, media companies, and video service providers aiming to maximise the value of their complete catalogue with SeaChange's analytics, promotions and advertising features.
Rave is backed by SeaChange's global Professional Services organisation, a strategic partner to media companies and service providers from consumer service conceptualisation through launch, mass-market commercialisation, and on-going performance monitoring and management.
"Until now the OTT phenomenon has mainly been about reaching the biggest possible audience, not about getting the most revenue from the TV and video content that consumers most prize," Samit added. "With the unlimited reach of the cloud and the reality that consumers have multiple IP connections going 24x7, we've created Rave to advance OTT's goal, to place value for content ahead of all else, and surround it with experiences that fully integrate the connected consumer lifestyle. Both content owners and service providers can capture the potential of the estimated $40 billion OTT opportunity from a single, virtually managed platform that completely secures and markets video streaming and downloading."