•Product Revenue of $16.2 Million Increased by 20% Year over Year
•Non-GAAP Operating Income of $3.4 Million Increased by 189% Year over Year
•GAAP Operating Income of $0.5 Million, Compared to $7.5 Million GAAP Operating Loss in Prior Year
•GAAP Gross Margins Exceed 57%
•Up to $25 Million Share Repurchase Authorized
ACTON, Mass., Sept. 5, 2013 (GLOBE NEWSWIRE) -- SeaChange International, Inc. (SEAC), a leading global multi-screen video software innovator, today reported second quarter fiscal 2014 revenue of $37.4 million and non-GAAP operating income of $3.4 million, or $0.10 per fully diluted share, from continuing operations. In comparison, second quarter fiscal 2013 revenue was $36.7 million and non-GAAP operating income was $1.2 million, or $0.04 per fully diluted share, from continuing operations. The Company posted a U.S. GAAP operating income of $0.5 million, or $0.01 per diluted share for the second quarter of fiscal 2014, compared to a U.S. GAAP operating loss for the second quarter of fiscal 2013 of $7.5 million, or $0.23 per basic share. The Company's U.S. GAAP second quarter fiscal 2014 results include charges of $2.9 million that are excluded from our non-GAAP results, which consisted primarily of stock-based compensation and amortization of intangible assets from prior acquisitions.
For the first six months of fiscal 2014, the Company posted revenues of $72.9 million and non-GAAP operating income of $4.6 million compared to revenues of $73.4 million and non-GAAP operating income of $3.5 million in the same prior period. The Company posted a GAAP operating loss for the first six months of fiscal 2014 of approximately $1.3 million compared to GAAP operating loss of $8.7 million for the same prior period.
"We are pleased that, in the second quarter, we achieved sequential and year over year increases in revenues and operating income and substantial growth in gross margins, which exceeded 57 percent," said Raghu Rau, Chief Executive Officer, SeaChange. "Our results would have been even better but for delays in receiving timely acceptance within the quarter for some of our new generation software products because of ongoing custom integrations with third-party products. We continued to make significant market progress including an Adrenalin rollout with one of the largest U.S. cable television operators, and Adrenalin and VOD advertising acceptance by a large European telco. We have also announced a large number of deployments, domestically and internationally, for our market-leading content management solutions. And we continued our Nucleus gateway software momentum with two more design wins."
Commenting on the Company's outlook, Anthony Dias, Chief Financial Officer, stated, "We continue to respond to strong demand for our new products and focus on optimizing our cost structure, and we anticipate solid performance in our second half. We expect third quarter revenues to be sequentially higher than the second quarter, and fourth quarter revenues to be sequentially higher than the third quarter. However, due to the uncertainty of timing in customer acceptance of new products, the Company expects its full year revenues to be at the lower end of its previously provided guidance of $165 million to $175 million. The Company continues to expect that its full fiscal 2014 non-GAAP operating income will be in the range of $0.53 to $0.71 per fully diluted share, as previously guided."
SeaChange ended the second quarter of fiscal 2014 with cash, cash equivalents and marketable securities of $126.5 million, compared to $122.3 million for the previous quarter. The Company also announced that its Board of Directors has authorized the repurchase of up to $25 million of its shares through January 31, 2015 by means of open market purchases, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934. Depending on market conditions and other factors, the repurchase may be commenced or suspended at any time, or from time to time, without prior notice.
SeaChange International Reports Second Quarter Fiscal 2014 Results - Yahoo! Finance