SeaChange International announced record earnings in its third quarter, leading to a $3.3 million profit. The company said trends in on-demand products and services are expected to remain favorable and that SeaChange expects to report a profit for the fourth quarter, as well.
SeaChange reported revenue of $49 million, $6.7 million higher than revenue of $42.3 million in the third quarter of 2006. The $3.3 million net income compares with a loss of $1.2 million in Q3 ’06.
The company is still operating at a net loss through the first nine months of its fiscal year.
SeaChange experienced revenue growth in video-on-demand (VOD) and ad insertion hardware and software.
The company said that continued strength from North American cable customers drove much of the increase in VOD systems revenue between this year’s second and third quarters, as well as increased order activity from customers in South Korea and India.
“… Top-line performance in the third quarter benefited from Axiom software deployments with non-SeaChange VOD servers at a large U.S. cable company,” said SeaChange CEO Bill Styslinger, in a statement. “We also began reaping the benefits of our second quarter cost reduction actions, which contributed approximately $1 million to our bottom-line results for the third quarter.”