SeaChange International, the global multi-screen video software company, has reported second quarter 2014 revenue of $37.4 million and operating income of $3.4 million from continuing operations. In comparison, second quarter fiscal 2013 revenue was $36.7 million and operating income was $1.2 million from continuing operations.
For the first six months of fiscal 2014, the company posted revenues of $72.9 million and operating income of $4.6 million compared to revenues of $73.4 million and operating income of $3.5 million in the same prior period. The company posted consolidated 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 prior period.
“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 per cent,” 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 including an Adrenalin rollout with one of the largest US cable television operators, and Adrenalin and VoD advertising acceptance by a large European telco. We have also announced a large number of deployments, domestically and internationally, for our market-leading content management solutions. And we continued our Nucleus gateway software momentum with two more design wins.”
Commenting on the Company’s outlook, Anthony Dias, Chief Financial Officer, stated, “We continue to respond to strong demand for our new products and focus on optimising our cost structure, and we anticipate solid performance in our second half. We expect third quarter revenues to be sequentially higher than the second quarter, and fourth quarter revenues to be sequentially higher than the third quarter. However, due to the uncertainty of timing in customer acceptance of new products, the Company expects its full year revenues to be at the lower end of its previously provided guidance of $165 million to $175 million. The Company continues to expect that its full fiscal 2014 non-GAAP operating income will be in the range of $0.53 to $0.71 per fully diluted share, as previously guided.”