After multiple quarters of inconsistent results as it struggled to find its sweet spot, video equipment maker SeaChange (Nasdaq: SEAC) is changing its top management; chief executive and founder Bill Styslinger is retiring immediately, the company announced Wednesday.
SeaChange also on Wednesday reduced its third quarter outlook, saying EPS will be 10 to 11 cents, down from the 16 to 22 cents it forecast in September, and said revenue will be $52 million to $53 million, the low end of its earlier guidance of $51 million to $57 million. Third quarter results are due Dec. 8.
Last spring, the company reportedly was in talks to be acquired by Arris Group, but SeaChange yesterday said it had decided remaining a standalone company was its best option.
"After an extensive review of strategic alternatives, the board has decided that it is in the best interest of shareholders to continue as a standalone publicly traded company," the company said in a statement, adding that it was "focused on significantly improving and streamlining operations."
The company also appears to be taking a page from Cisco (Nasdaq: CSCO) chief executive John Chambers' playbook, saying it would "evaluate alternatives for certain non-core businesses." Earlier this year, Chambers, faced with falling profits, undertook a restructuring of the company that eliminated under-performing businesses and resulted in big layoffs. The stock and balance sheet have responded.
SeaChange said it would would immediately hire a search firm to lead its hunt for a new CEO, and named board member Raghu Rau interim CEO.
"My immediate focus will be to act with a sense of urgency to drive shareholder value by focusing on improving financial performance, operational excellence and delivering exciting, high-quality, next generation products to our customers," said Rau, who promised more details during next week's earnings call.
- see this release
- see this MCN article
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