SeaChange “transitional year”
April 4, 2014
SeaChange International, a global multi-screen video software innovator, has reported fourth quarter fiscal 2014 revenue of $35.6 million and non-GAAP operating income of $0.9 million from continuing operations, consistent with the Company’s preliminary results announced on February 25th. In comparison, fourth quarter fiscal 2013 revenue was $44.6 million and non-GAAP operating income was $9.5 million. The Company posted a US GAAP operating loss of $0.9 million for the fourth quarter of fiscal 2014 compared to $4.9 million in 2013.
For the full fiscal year ended January 31st 2014, the Company posted revenues of $146.3 million and non-GAAP operating income of $8.4 million, compared to revenues of $157.2 million and non-GAAP operating income of $15.9 million in the same prior period. The Company posted a US GAAP loss from operations for fiscal 2014 of $1.6 million, compared to a $5.3 million operating loss for the same prior period. Included in the full fiscal 2014 results are $10.1 million in non-GAAP charges related to stock-based compensation and amortisation of intangible assets from prior acquisitions, professional fees from divestitures and litigation, severance and other restructuring charges, while the full fiscal 2013 results included $21.2 million of similar non-GAAP charges.
“Fiscal 2014 was a transitional year for SeaChange,” said Raghu Rau, CEO, SeaChange. “We established our next generation Adrenalin multi-screen television platform and Reference Design Kit-based Nucleus video gateway software as leaders in the market, while managing the decline of our legacy products. Over the course of fiscal 2014, we continued to make significant progress with our strategic growth initiatives as demonstrated by our expansion into telcos with multi-screen deployments by two new service providers in Europe, upgrades of our legacy video-on-demand and advertising customers to Adrenalin and Infusion, and further design wins for Nucleus. Our next generation products accounted for two-thirds of total product revenue in the fourth quarter.”
Rau continued, “We believe that fiscal 2015 will be the third and final year of our transition. During this time, we anticipate that declines in sales of our legacy products will offset the growth in our new products due to extended lead times in customer orders and acceptances. We expect these legacy declines to be most significant during the first quarter of fiscal 2015, which is our lowest quarter typically. As such, we continue to expect that revenue will likely grow only in the second half of fiscal 2015 and remain flat to down for the full year relative to fiscal 2014.”