SeaChange International Reports Fourth Quarter And and Full Year Fiscal 2018 Results

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ACTON, Mass., April 16, 2018 (GLOBE NEWSWIRE) -- (NASDAQ:SEAC) today reported fourth quarter fiscal 2018 revenue of $22.9 million and U.S. GAAP income from operations of $1.2 million, or $0.04 per fully diluted share, compared to fourth quarter fiscal 2017 revenue of $23.8 million and U.S. GAAP loss from operations of $24.5 million, or $0.69 per basic share. 

The Company’s U.S. GAAP fourth quarter fiscal 2018 results included non-GAAP charges of $2.1 million, which consisted primarily of severance and other restructuring costs of $1.1 million, stock-based compensation of $0.5 million and amortization of intangible assets from prior acquisitions of $0.6 million, while fourth quarter fiscal 2017 results included $22.3 million of non-GAAP charges, which also include a $23.7 million impairment on our goodwill and a ($4.1) million  recovery on loss contract. Non-GAAP income from operations in the fourth quarter of fiscal 2018 was $3.3 million, or $0.10 per fully diluted share, compared to the fourth quarter of fiscal 2017 non-GAAP loss from operations of $2.1 million, or $0.06 per basic share.

For the full fiscal year ended January 31, 2018, the Company reported revenue of $80.3 million and a U.S. GAAP loss from operations of $5.4 million, or $0.15 per basic share, compared to revenue of $83.8 million and a U.S. GAAP loss from operations of $54.1 million, or $1.55 per basic share, in the same period in the prior fiscal year.  The Company posted non-GAAP income from operations for fiscal 2018 of $3.9 million, or $0.11 per fully diluted share, compared to a non-GAAP loss from operations of $20.8 million, or $0.60 per basic share, for the same period of fiscal 2017.

Ed Terino, Chief Executive Officer, SeaChange, said, “We are very pleased with our results for the fourth quarter and fiscal year.  We exited fiscal 2018 in a much stronger financial position with improved customer delivery capabilities and a product portfolio that meets evolving customer needs.  We continue to see three significant trends developing in the digital media industry: video platform deployments in the cloud; increased video delivery via mobile devices; and a more personalized video consumption experience.  Our core products and new innovations will better enable us to take advantage of these opportunities in the rapidly changing digital media industry, as we encounter changing business models accompanied by volatility in customer buying cycles. While we continue to focus on our core customer base of video service providers, we are expanding our “go-to-market” initiatives to adjacent market segments, such as wireless carriers, content owners and Internet Service Providers.  As a result, we believe we are well-positioned to drive overall revenue growth, increased profitability and positive cash flow in fiscal 2019.”

Peter Faubert, Chief Financial Officer, SeaChange, said, “The fourth quarter marks our second consecutive quarter of operating profitability, evidence that our initiatives to reduce costs and return the Company to profitability and positive cash flow have taken hold.  SeaChange’s fourth quarter and fiscal year results reflect the progress we have made in our restructuring efforts, as evidenced across all our key metrics – revenue, gross margin and non-GAAP EPS.  During this fiscal year we generated more revenue from higher margin software license product revenue, improving our gross margin. Our continued discipline in controlling operating expenses, along with sequential and year-over-year improvement in our GAAP and non-GAAP gross profit margin, resulted in our return to profitability and positive cash flow for the year.” 

Faubert added, “Looking ahead to fiscal 2019, we remain focused on profitability and positive cash flow, while we continue to invest in innovative solutions for customers, even as the implementation of the new revenue accounting standard is likely to decrease by approximately $1 million to $3 million the amount of revenue we expect to recognize in Fiscal 2019.”

SeaChange ended the fourth quarter of fiscal 2018 with cash, cash equivalents, restricted cash and marketable securities of approximately $52 million, and no debt outstanding, an increase compared to approximately $39 million as of January 31, 2017.

These GAAP estimates are subject to a number of variables that are outside of management’s control, including the size of restructuring expenses, which are influenced by the timing of certain non-U.S. restructuring activities, and stock price fluctuations.

Enabling our customers to deliver billions of premium video streams across a matrix of pay-TV and OTT platforms, SeaChange (Nasdaq: SEAC) empowers service providers, broadcasters, content owners and brand advertisers to entertain audiences, engage consumers and expand business opportunities. As an Emmy winning organization with nearly 25 years of experience, we give media businesses the content management, delivery and monetization capabilities they need to craft an individualized branded experience for every viewer that sets the pace for quality and value worldwide. For more information, please visit .

 

We define non-GAAP income (loss) from operations as U.S. GAAP operating income (loss) plus stock-based compensation expenses, amortization of intangible assets, recovery on loss contract, change in fair value of earn-outs, non-operating professional fees, severance and other restructuring costs and loss on impairment of long-lived assets. We discuss non-GAAP income (loss) from operations in our quarterly earnings releases and certain other communications as we believe non-GAAP operating income (loss) from operations is an important measure that is not calculated according to U.S. GAAP. We use non-GAAP income (loss) from operations in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors, determining a component of bonus compensation for executive officers and other key employees based on operating performance and evaluating short-term and long-term operating trends in our operations. We believe that the non-GAAP income (loss) from operations financial measure assists in providing an enhanced understanding of our underlying operational measures to manage the business, to evaluate performance compared to prior periods and the marketplace, and to establish operational goals. We believe that the non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making.

Non-GAAP income (loss) from operations is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with U.S. GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the financial adjustments described above in arriving at non-GAAP income (loss) from operations and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring.

In managing and reviewing our business performance, we exclude a number of items required by U.S. GAAP. Management believes that excluding these items is useful in understanding the trends and managing our operations. We provide these supplemental non-GAAP measures in order to assist the investment community in seeing SeaChange through the “eyes of management,” and therefore enhance the understanding of SeaChange’s operating performance. Non-GAAP financial measures should be viewed in addition to, not as an alternative to, our reported results prepared in accordance with U.S. GAAP. Our non-GAAP financial measures reflect adjustments based on the following items:

The following table includes the reconciliations of our U.S. GAAP income (loss) from operations, the most directly comparable U.S. GAAP financial measure, to our non-GAAP income (loss) from operations for the three and twelve months ended January 31, 2018 and 2017 (amounts in thousands, except per share and percentage data):

The following table reconciles the Company’s forecasted U.S. GAAP operating (loss) income per share to the Company’s forecasted non-GAAP operating income per share for the Company’s first fiscal quarter and full fiscal 2019:

More news and information about SeaChange International, Inc.

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Globe Newswire: 21:02 GMT Monday 16th April 2018

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