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SeaChange ekes out a Q1 profit

May 30, 2008 By Brian Santo

SeaChange International announced increased revenue and just barely managed a positive net in its first quarter 2009, ended April 30, 2008, making it three profitable quarters in a row for the company.

Total revenue was $45.3 million, 17 percent higher than the first quarter of fiscal 2008. Net income for the first quarter was $0.3 million, compared with a net loss of $4.6 million for the same period last year.

The Company’s new reporting segments are Software, which includes the Company’s Advertising, VOD, Middleware and Broadcast software; Servers & Storage, which includes the Company’s VOD and Broadcast server product lines; and Media Services, which includes ODG.

Year-over-year revenue growth was driven by increased software sales related to the companies Axiom products, and increased sales of VOD hardware, mostly to North American service providers and hospitality customers.

SeaChange president & CEO Bill Styslinger said “We are particularly encouraged by our solid top-line performance this quarter as historically the first quarter has generally been challenging. North American service provider spending for our VOD server and software products continues to be strong, driving gross margins to 50 percent for the quarter, the first time this level has been achieved in nearly two years.”

The company expects fiscal 2009 revenue will be approximately 10 percent higher than fiscal 2008, and that it will be profitable for the second quarter and full fiscal 2009.

More Broadband Direct:

• FCC wireless auction may pave way to free public access 

• SeaChange ekes out a Q1 profit 

• NCTA elects board and exec committee 

• Broadband Briefs for 5/30/08 

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