SeaChange International, Inc. (SEAC) saw its loss narrow to $5.37 million, or $0.15 a share for the quarter ended Apr. 30, 2017. In the previous year period, the company reported a loss of $8.91 million, or $0.26 a share. On an adjusted basis, loss per share was at $0.05 for the quarter compared with loss of $0.20 a share in the same period last year.
Revenue during the quarter dropped 22.73 percent to $16.67 million from $21.57 million in the previous year period. Gross margin for the quarter expanded 1685 basis points over the previous year period to 59.26 percent. Operating margin for the quarter stood at negative 32.81 percent as compared to a negative 44.39 percent for the previous year period.
Operating loss for the quarter was $5.47 million, compared with an operating loss of $9.58 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $1.65 million compared to operating loss of $6.79 million in prior year period.
Ed Terino, chief executive officer, SeaChange, said, "In the first quarter of fiscal 2018, we saw success with existing and new customers for IP video and cloud-based deployments, as well as green field customer opportunities globally for our end-to-end solutions, all of which are collectively strengthening our pipeline for the year. At the same time, our ongoing restructuring initiatives yielded positive results more quickly. We continue to be focused on achieving a return to profitability, positive cash flow and revenue growth in the second half of this fiscal year."
For the second-quarter 2018, SeaChange International, Inc. expects revenue to be in the range of $17 million to $20 million. The company projects diluted loss per share to be in the range of $0.13 to $0.07. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.09 to $0.03.
For financial year 2018, SeaChange International, Inc. expects revenue to be in the range of $80 million to $90 million for. The company projects diluted loss per share to be in the range of $0.37 to $0.25. The company projects diluted loss per share to be in the range of negative $0.10 to $0.02 on adjusted basis.
Operating cash flow remains negative
SeaChange International, Inc. has spent $0.92 million cash to meet operating activities during the quarter as against cash outgo of $5.49 million in the last year period.
Cash flow from investing activities was $0.02 million for the quarter as against cash outgo of $0.77 million in the last year period.
Cash flow from financing activities was $0.02 million for the quarter as against cash outgo of $0.05 million in the last year period.
Cash and cash equivalents stood at $26.84 million as on Apr. 30, 2017, down 47.89 percent or $24.67 million from $51.51 million on Apr. 30, 2016.
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