After reporting fiscal fourth quarter earnings that put its new CEO in the spotlight, struggling SeaChange International (Nasdaq: SEAC) appears set to make more cuts and divestitures, including the sale of the video-on-demand management unit that has worked closely with cable TV operators.
Selling that unit, On Demand Group, along with sale of its broadcast server and storage business, which was announced about a week ago, would leave SeaChange focusing more on software.
New CEO Raghu Rau said that is exactly what SeaChange is aiming to do, and one can't blame them after seeing a software company like NDS get acquired for $5 billion. Rau has made a decisive impact since taking over the top job after layoffs and executive-level restructuring in early February, and appears determined to recast a company that has been one of the major VoD vendors at a time when VoD is really starting to take off.
The company reported fiscal fourth quarter loss of $3.5 million, and revenue fell about $6 million to $51.7 million, compared to the same quarter of 2010.
SeaChange recently said it would sell its businesses
SeaChange announced job cuts earlier this year