SeaChange to miss Q2 targets and cut more costs

Edward Terino

SeaChange has said that it expects to miss both its revenue and operating targets for fiscal Q2 and warned that additional cost savings will occur in Q3. 

In a preliminary results announcement ahead of its fiscal second quarter results on September 1, the company said it expects revenue of approximately US$18.3 million (€16.2 million) to US$18.5 million, compared to the company’s prior guidance of US$23 million to $25 million.

It attributed the shortfall primarily to an “increase in estimated time to complete active statements of work”, and on delays to customer deals that were expected to close in the second quarter.

It said non-GAAP operating loss will come in at approximately US$0.19 to US$0.23 per basic share, compared to prior guidance of a non-GAAP operating loss of US$0.10 to US$0.15 per basic share.

“While we are disappointed with our second-quarter results, we are confident in our course of action to continue driving long-term growth, and remain optimistic regarding our revenue pipeline for the second half of fiscal 2017,” said SeaChange CEO, Ed Terino.

“With a new CFO in place, who brings over 15 years of finance leadership in media, we continue to make excellent progress in improving our operations and optimising our cost structure. We plan to implement additional companywide cost savings initiatives in our fiscal third quarter in order to achieve profitability and positive cash flow performance in the fourth quarter of fiscal 2017.”