Video-on-demand company SeaChange International has aggressively expanded in the last year, making at least two acquisitions, but the company has been unable to find enough success to keep it from posting a whopping 99 percent drop in profit in the fourth quarter of 2009, compared to a year earlier. SeaChange also said president and COO Ed Dundar has left the company, and that chief strategy officer Yvette Kanouff has moved into the president's seat. In addition, job cuts are coming soon.
SeaChange is a veteran in the VoD market, but that market is changing fast as various online video ventures and strategies pick up speed. The company has been quick to move in directions via acquisition over the years, buying up firms like Liberate Technologies and Mobix. More recently it acquired eventIS and VividLogic--both outfits that looked to give SeaChange a hand with software capabilities.
Light Reading Cable reports that SeaChange is committed to pursuing a more centralized software service and product strategy to keep its edge in the busy online video game. While the profit drop was huge, revenue from software actually increased close to 9 percent for the quarter.
- Light Reading Cable has this story
SeaChange acquired EventIS last year
SeaChange moved to buy VividLogic in January