SeaChange International, Inc. (SEAC) saw its loss narrow to $8.08 million, or $0.23 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $10.56 million, or $0.31 a share. On an adjusted basis, loss per share was at $0.13 for the quarter compared with a profit of $0.01a share in the same period last year.
Revenue during the quarter plunged 30.56 percent to $19.96 million from $28.75 million in the previous year period. Gross margin for the quarter expanded 2523 basis points over the previous year period to 49.16 percent. Operating margin for the quarter stood at negative 42.26 percent as compared to a negative 41.19 percent for the previous year period.
Operating loss for the quarter was $8.44 million, compared with an operating loss of $11.84 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $4.32 million compared to operating profit of $0.37 million in prior year period.
"While we are disappointed with our year to date revenue performance, we continue to make good progress with our turnaround efforts and our initiatives to drive costs down and return to profitability and cash flow positive performance," said Ed Terino, chief executive officer, SeaChange. "During the third quarter we continued to strengthen our sales and engineering organizations, while reducing our cost structure. We remain on track to complete our cost reduction efforts by fiscal year-end that will yield approximately $30 million in annual cost savings. These efforts have already yielded results with increased sales leads, a growing revenue pipeline, and improved product quality. New business in the third quarter included a Latin American video-on-demand and advertising customer upgrade to our Adrenalin and Infusion platforms, as well as our content management system. In North America, we won another new customer for Adrenalin, replacing a video back office competitor in the process. In addition, we are very pleased to welcome Mark Tubinis as Senior Vice President of Engineering & Global Services, and believe that his extensive experience will enhance our ability to optimize quality and product innovation."
For the fourth-quarter 2017, SeaChange International, Inc. expects revenue to be in the range of $22 million to $24 million. The company projects diluted loss per share to be in the range of $0.18 to $0.13. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.10 to $0.05.
For financial year 2017, SeaChange International, Inc. expects revenue to be in the range of $82 million to $84 million. The company projects diluted loss per share to be in the range of $1.04 to $0.99.The company projects diluted loss per share to be in the range of $0.65 to $0.60 on adjusted basis.
Operating cash flow remains negative
SeaChange International, Inc. has spent $26.99 million cash to meet operating activities during the nine month period as against cash outgo of $19.44 million in the last year period.
The company has spent $3.76 million cash to meet investing activities during the nine month period as against cash outgo of $12.90 million in the last year period.
Cash flow from financing activities was $0.06 million for the nine month period, down 31.82 percent or $0.03 million, when compared with the last year period.
Cash and cash equivalents stood at $27.48 million as on Oct. 31, 2016, down 52.64 percent or $30.55 million from $58.03 million on Oct. 31, 2015.
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