SeaChange International, Inc. (SEAC) saw its loss widen to $27.38 million, or $0.78 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $22.28 million, or $0.66 a share. On an adjusted basis, loss per share was at $0.06 for the quarter.
Revenue during the quarter dropped 12.45 percent to $23.81 million from $27.20 million in the previous year period. Gross margin for the quarter expanded 950 basis points over the previous year period to 66.20 percent.
Operating loss for the quarter was $24.97 million, compared with an operating loss of $22.14 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $2.15 million compared to operating profit of $0.14 million in prior year period.
Ed Terino, Chief Executive Officer, SeaChange, said, "Fiscal year 2017 was a transitional year for SeaChange, capped off by strong fourth quarter performance. We made significant progress with our turnaround efforts and our initiatives to drive costs down and return to profitability and positive cash flow in fiscal 2018. Our product revenue grew substantially, driven by the deployment of a virtualized Adrenalin video platform for our largest customer and we achieved a significant milestone when a large European customer, the Quickline Group, deployed a complete SeaChange end-to-end multiscreen solution, including Page 1 of 12 Adrenalin and our Nucleus RDK-based video home gateway."
For financial year 2018, Seachange International expects revenue to be in the range of $80 million to $90 million.
For the first-quarter, SeaChange International, Inc. expects revenue to be in the range of $16 million to $18 million.
Operating cash flow remains negative
SeaChange International, Inc. has spent $28.52 million cash to meet operating activities during the year as against cash outgo of $18.66 million in the last year.
The company has spent $3.90 million cash to meet investing activities during the year as against cash outgo of $13.13 million in the last year.
Cash flow from financing activities was $0.06 million for the year, down 68.91 percent or $0.13 million, when compared with the last year.
Cash and cash equivalents stood at $28.30 million as on Jan. 31, 2017, down 51.81 percent or $30.43 million from $58.73 million on Jan. 31, 2016.
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