SeaChange VOD pays dividends

Fourth-quarter net income was $4.8m, down from $12m in the comparable quarter a year ago; the year-ago quarter included a one-time $10m gain, the company said. SeaChange added it would repurchase up to $20 million of its common stock in a buyback programme.

“Despite the challenging economic times this country is facing, we believe SeaChange is solidly positioned to exploit the continuing movement to video-on-demand television that has been the cornerstone of our business,” president and CEO Bill Styslinger said in a statement.

Total revenues for the fiscal year that ended Jan 31 were $201.8m, up 12%, and full-year net income was $10m, versus $2.9m from the previous year, the company said. While the company said it expects revenue to be flat for the first half of the current fiscal year, it said it is "cautiously optimistic" about the year's second half.

The Company ended the fourth quarter of fiscal 2009 with cash, cash equivalents and marketable securities of $85.8m and no debt compared with $79.7m and no debt at the end of Q3 2008. Increased cash flow of $6.1m for Q4 derived from net income and non-cash expenses of $8.1m along with $2.3m of improved working capital performance that were partially offset by $2.5m of capital expenditures during the fourth quarter and $3.2m related to the purchase of Mobix Interactive, Ltd.

The Media Services segment revenue of $4.2m for Q4 2009 was $0.8m lower than comparable revenue from Q4-2008. Revenues from new contracts with customers in Greece and Turkey were more than offset by the depreciation of the UK pound compared to the US dollar since the fourth quarter of fiscal 2008. At constant exchange rates with the fourth quarter of fiscal 2008, Media Services revenue in the fourth quarter of fiscal 2009 would have been $5.7 million or 14% higher than the prior year's fourth quarter.

"Despite the challenging economic times this country is facing, we believe SeaChange is solidly positioned to exploit the continuing movement to video-on-demand television that has been the cornerstone of our business," noted Styslinger. "We continue to foster strong and longstanding relationships with our key North American customers and we are complementing this approach with recent telecommunications customer wins in Europe, Asia and Latin America."