Video-on-demand technology specialist SeaChange International's second quarter results missed analysts' projections, and the company's forecast for upcoming quarters did little to ease the disappointment on Wall Street, which reacted by pushing SeaChange shares down 16 percent in extended trading.
The company showed improvement with $3.5 million in revenue in Q2, up from a loss of $376,000 in the like quarter a year ago. The 11-cent EPS missed analyst expectations of 13-cents per share for the quarter. Revenue was up, largely as the result of recent acquisitions, to $51.6 million for the quarter. The company revised its revenue forecast for the year downward to $215 million to $220 million from $225 million to $235 million. Third quarter earnings had been expected to reach $59 million, or 17 cents per share, but the company forecasts revenues in the range of $50 million to $53 million, or 7 to 10 cents per share.
SeaChange said its revenue from its server and storage division was down about 13 percent to $10.3 million from a year ago, and forecast saw continued weakness through the end of the year. On a brighter note, the company said software sales for VOD services were doing well, with its media services earning revenue of $7.1 million.
In March, COO and president Ed Dundar left the company after the company posted a 99 percent drop in profit for the quarter compared to a year earlier. Chief strategy officer Yvette Kanouff moved into the president's seat.
For more:
- see this release
- see this article
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