SeaChange International, Inc. (NASDAQ:SEAC) today reported first
quarter fiscal 2019 revenue of $14.9 million and a U.S. GAAP loss
from operations of $5.1 million, or $0.15 per basic share, compared
to first quarter fiscal 2018 revenue of $16.7 million and U.S. GAAP
loss from operations of $5.5 million, or $0.16 per basic
share.
The Company’s U.S. GAAP first quarter fiscal 2019 results
included non-GAAP charges of $1.3 million, which consisted
primarily of stock-based compensation of $0.9 million and
amortization of intangible assets from prior acquisitions of $0.4
million, while first quarter fiscal 2018 results included non-GAAP
charges of $3.8 million, which consisted primarily of severance and
other restructuring costs of $2.1 million, stock-based compensation
of $0.9 million, amortization of intangible assets from prior
acquisitions of $0.6 million and a provision for loss contract of
$0.2 million. The non-GAAP loss from operations in the first
quarter of fiscal 2019 was $3.8 million, or $0.11 per basic share,
compared to the first quarter of fiscal 2018 non-GAAP loss from
operations of $1.7 million, or $0.05 per basic share.
Ed Terino, Chief Executive Officer, SeaChange, said, “In the
first quarter of 2019, we delivered solid results at the higher end
of our guidance for both the top and bottom line, and are affirming
our outlook for the full fiscal year. Our partner program,
focused on both channel and technology partners, is generating
increased opportunities, as we strengthen our pipeline in new
market segments and geographies. As a result, we are seeing
greater revenue potential in Latin and South America, and Asia
Pacific.”
Terino continued, “Just last week, we launched several major new
product initiatives designed to drive revenue growth for fiscal
2019 and beyond. These products include our new solutions
portfolio, called cFlow™, which equips video providers with a
comprehensive set of workflow, meta-data, merchandizing,
monetization, and viewer experience management tools for creating
personalized viewing or ‘indivisual™’ experiences. cFlow creates an
easily deployable ‘video personalization pipeline’ that can
increase viewer engagement and monetization, helping our partners
navigate the industry-wide march towards personalization and
positioning SeaChange for continued market leadership and
growth. We also launched PanoramiC™, a powerful, cloud-based
end-to-end solution that is a pre-integrated combination of cFlow
elements with best-of-breed components from partners to create a
complete OTT platform, and have been thrilled with the early
customer and partner response.”
Peter Faubert, Chief Financial Officer, SeaChange, said, “Our
financial results in the first quarter of fiscal 2019 establish a
platform that we can leverage as we generate higher revenues in the
remainder of the year. As expected, we incurred consulting costs
during the quarter related to one-time projects including adoption
of new revenue recognition standards ASC 606. We are confident that
with these costs behind us, operating expenses will be more
normalized in the back half of this fiscal year, enabling us to
resume operating profitability.”
Faubert added, “We continue to successfully manage working
capital, and our guidance for the year remains unchanged.”
SeaChange ended the first quarter of fiscal 2019 with cash, cash
equivalents, restricted cash and marketable securities of $49.1
million, and no debt outstanding.
New Accounting Standard ImpactAs of February 1,
2018, SeaChange adopted Accounting Standards Codification No.
(“ASC”) 606, “Revenue from Contracts with Customers, which affects
the accounting for revenue. The company adopted ASC 606 using the
modified retrospective transition method, under which the prior
periods presented have not been recast to reflect adoption of the
new standard. This standard is not expected to have a material
impact on the Company’s results of operations and financial
condition.
OutlookSeaChange anticipates second quarter
fiscal 2019 revenue to be in the range of $17 million to $19
million, U.S. GAAP operating results to be in the range of a loss
from operations of $0.08 per basic share to $0.04 per basic share,
and non-GAAP operating loss to be in the range of $0.04 to $0.00
per basic share. For the full fiscal year 2019, the company
continues to expect revenue in the range of $80 million to $90
million, U.S. GAAP operating results in the range of a loss from
operations of $0.06 per basic share to operating income of $0.09
per fully diluted share and non-GAAP operating income in the range
of $0.10 to $0.25 per fully diluted share.
These GAAP estimates are subject to a number of variables that
are outside of management’s control, including the size of
restructuring expenses, which are influenced by the timing of
certain non-U.S. restructuring activities, and stock price
fluctuations.
Conference CallThe Company will host a
conference call to discuss its first quarter fiscal 2019 results at
5:00 p.m. ET today, Wednesday, June 6, 2018. The call may be
accessed by dialing 877-407-8037 (U.S.) and 201-689-8037
(international) and via live webcast at www.schange.com/IR.
The webcast replay will be archived on the investor relations
section of the Company's website at www.schange.com/IR.
About SeaChange International For 25 years,
SeaChange (Nasdaq:SEAC) has pioneered solutions to help video
providers around the world manage and monetize their content. As
the video industry rapidly evolves to meet the “anytime, anywhere”
demands of today’s viewers, SeaChange’s comprehensive content,
business, advertising, and experience management solutions provide
a mature, network-agnostic, cloud-enabled platform of scalable core
capabilities that video service providers, broadcasters, content
owners and brand advertisers need to create the personalized,
indivisual™ experiences that drive viewer engagement and
monetization. For more information, please visit
www.seachange.com.
Safe Harbor Provision
Any statements contained in this press release that do not
describe historical facts, including regarding anticipated revenue,
income from operations, cost savings and other financial matters,
are neither promises nor guarantees and may constitute
“forward-looking statements” as that term is defined in the U.S.
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements may include words such as “may,”
“might,” “will,” “should,” “could,” “expects,” “plans,”
“anticipates,” “believes,” “seeks,” “intends,” “estimates,”
“predicts,” “potential” or “continue,” the negative of these terms
and other comparable terminology. Any such forward-looking
statements contained herein are based on current assumptions,
estimates and expectations, but are subject to a number of known
and unknown risks and significant business, economic and
competitive uncertainties that may cause actual results to differ
materially from expectations. Numerous factors could cause actual
future results to differ materially from current expectations
expressed or implied by such forward-looking statements, including,
without limitation, the following: the continued spending by
the Company’s customers on video solutions and services and
expenses we may incur in fulfilling customer arrangements; the
success of our efforts to introduce SaaS-based multiscreen service
offerings; the Company’s ability to successfully introduce new
products or enhancements to existing products; the manner in which
the multiscreen video and OTT markets develop; the Company’s
transition to being a company that primarily provides software
solutions; the Company’s ability to compete in the marketplace; any
failure by the Company to respond to changing technology; measures
taken to address the variability in the market for our products and
services; the loss of or reduction in demand, or the return
of product, by one of the Company’s large customers or the failure
of revenue acceptance criteria in a given fiscal quarter;
consolidation in the markets the Company serves; the cancellation
or deferral of purchases of the Company’s products; the length of
the Company’s sales cycles; any decline in demand or average
selling prices for our products and services; failure to manage
product transitions; failure to achieve our financial forecasts due
to inaccurate sales forecasts or other factors, including due to
expenses we may incur in fulfilling customer arrangements; the
impact of restructuring programs; the Company’s ability to manage
its growth; the risks associated with international operations; the
ability of the Company and its intermediaries to comply with the
Foreign Corrupt Practices Act; foreign currency fluctuation; the
Company’s ability to protect its intellectual property rights and
the expenses that may be incurred by the Company to protect its
intellectual property rights; an unfavorable result of current or
future litigation relating to the Company’s intellectual property;
content providers limiting the scope of content licensed for use in
the video-on-demand and OTT market or other limitations in
materials we use to provide our products and services; the
Company’s ability to realize the benefits of completed or future
acquisitions; the impact of acquisitions, divestitures or
investments made by the Company; the Company’s ability to raise
additional funds through capital markets on favorable terms and in
a timely manner; the Company’s ability to access sufficient funding
to finance desired growth and operations; the performance of the
companies in which the Company has made equity investments; any
impairment of the Company’s assets; the impact of changes in the
market on the value of our investments; changes in the regulatory
environment; the Company’s ability to hire and retain highly
skilled employees; the ability of the Company to manage and oversee
the outsourcing of engineering work; additional tax liabilities to
which the Company may be subject; possible adjustments to estimates
resulting from the new tax legislation; any breach of the Company’s
security measures and customer data or our data being obtained
unlawfully; service interruptions or delays from our third-party
data center hosting facilities; disruptions to the Company’s
information technology systems; uncertainties of regulation of
Internet and data traveling over the Internet; the volatility of
our stock; actions that may be taken by significant stockholders;
if securities analysts do not publish favorable research or reports
about our business; our use of non-GAAP reporting; change in
accounting standards; any weakness in the Company’s internal
controls over financial reporting; the Company’s use of estimates
in accounting for the Company’s contracts; the performance of the
Company’s third-party vendors; the Company’s entry into fixed price
contracts and the related risk of cost overruns; the risks
associated with purchasing material components from sole suppliers
and using a limited number of third-party manufacturers; terrorist
acts, conflicts, wars and geopolitical uncertainties; and the
Company’s Delaware anti-takeover provisions. These risks and other
risk factors that could cause actual results to differ from those
anticipated are detailed in various publicly available documents
filed by the Company from time to time with the Securities and
Exchange Commission (SEC), which are available at www.sec.gov,
including but not limited to, such information appearing under the
caption “Risk Factors” in the Company’s Annual Report on Form 10-K
filed with the SEC on April 16, 2018. Any forward-looking
statements should be considered in light of those risk factors. The
Company cautions readers not to rely on any such forward-looking
statements, which speak only as of the date they are made. The
Company disclaims any intent or obligation to publicly update or
revise any such forward-looking statements to reflect any change in
Company expectations or future events, conditions or circumstances
on which any such forward-looking statements may be based, or that
may affect the likelihood that actual results may differ from those
set forth in such forward-looking statements.
|
SeaChange International, Inc. |
Preliminary Condensed Consolidated Balance
Sheets |
(Unaudited, amounts in thousands) |
|
|
|
|
|
|
|
|
|
April 30, |
|
January 31, |
|
|
|
2018 |
|
2018 |
|
|
|
|
|
|
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
38,856 |
|
$ |
43,652 |
Restricted cash |
|
|
- |
|
|
9 |
Marketable securities |
|
|
10,239 |
|
|
8,440 |
Accounts and other receivables, net |
|
|
11,849 |
|
|
22,537 |
Unbilled receivables |
|
|
6,341 |
|
|
3,101 |
Inventories, net |
|
|
745 |
|
|
666 |
Prepaid expenses and other current assets |
|
|
3,265 |
|
|
3,557 |
Property and equipment, net |
|
|
9,174 |
|
|
9,471 |
Goodwill and intangible assets, net |
|
|
26,206 |
|
|
26,882 |
Other assets |
|
|
736 |
|
|
1,015 |
|
Total
assets |
|
$ |
107,411 |
|
$ |
119,330 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Accounts payable and other current liabilities |
|
$ |
10,766 |
|
$ |
17,810 |
Deferred revenues |
|
|
11,282 |
|
|
14,433 |
Deferred tax liabilities and income taxes payable |
|
|
1,331 |
|
|
1,367 |
|
Total
liabilities |
|
|
23,379 |
|
|
33,610 |
|
|
|
|
|
|
Total stockholders’ equity |
|
|
84,032 |
|
|
85,720 |
|
Total liabilities and
stockholders’ equity |
|
$ |
107,411 |
|
$ |
119,330 |
|
|
|
|
|
|
|
SeaChange International, Inc. |
Preliminary Condensed Consolidated Statements
of Operations |
(Unaudited, amounts in thousands, except per
share data) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
April 30, |
|
|
|
2018 |
|
2017 |
Revenues: |
|
|
|
|
|
Products |
|
$ |
3,091 |
|
|
$ |
2,749 |
|
|
Services |
|
|
11,844 |
|
|
|
13,918 |
|
|
Total
revenues |
|
|
14,935 |
|
|
|
16,667 |
|
Cost of
revenues: |
|
|
|
|
|
Products |
|
|
319 |
|
|
|
554 |
|
|
Services |
|
|
5,531 |
|
|
|
5,980 |
|
|
Amortization of intangible assets |
|
|
178 |
|
|
|
254 |
|
|
Stock-based
compensation expense |
|
|
1 |
|
|
|
2 |
|
|
Total
cost of revenues |
|
|
6,029 |
|
|
|
6,790 |
|
|
Gross profit |
|
|
8,906 |
|
|
|
9,877 |
|
Operating
expenses: |
|
|
|
|
|
Research and
development |
|
|
5,484 |
|
|
|
5,378 |
|
|
Selling and
marketing |
|
|
3,386 |
|
|
|
2,937 |
|
|
General and
administrative |
|
|
3,994 |
|
|
|
3,643 |
|
|
Amortization of
intangible assets |
|
|
226 |
|
|
|
344 |
|
|
Stock-based
compensation expense |
|
|
878 |
|
|
|
875 |
|
|
Professional fees - other |
|
|
- |
|
|
|
21 |
|
|
Severance and other
restructuring costs |
|
|
54 |
|
|
|
2,147 |
|
|
Total
operating expenses |
|
|
14,022 |
|
|
|
15,345 |
|
Loss from
operations |
|
|
(5,116 |
) |
|
|
(5,468 |
) |
Other
(expenses) income, net |
|
|
(849 |
) |
|
|
366 |
|
Loss before
income taxes |
|
|
(5,965 |
) |
|
|
(5,102 |
) |
Income tax
(benefit) provision |
|
|
(494 |
) |
|
|
269 |
|
Net loss |
|
$ |
(5,471 |
) |
|
$ |
(5,371 |
) |
|
|
|
|
|
|
Net loss
per share: |
|
|
|
|
|
Basic |
|
$ |
(0.15 |
) |
|
$ |
(0.15 |
) |
|
Diluted |
|
$ |
(0.15 |
) |
|
$ |
(0.15 |
) |
Weighted
average common shares outstanding: |
|
|
|
|
|
Basic |
|
|
35,608 |
|
|
|
35,309 |
|
|
Diluted |
|
|
35,608 |
|
|
|
35,309 |
|
|
|
|
|
|
|
|
SeaChange International, Inc. |
Preliminary Condensed Consolidated Statements
of Cash Flows |
(Unaudited, amounts in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
April 30, |
|
|
|
|
|
2018 |
|
2017 |
Cash flows from operating activities: |
|
|
|
|
Net loss |
$ |
(5,471 |
) |
|
$ |
(5,371 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
Depreciation and amortization of property and equipment |
|
383 |
|
|
|
620 |
|
|
|
Amortization of intangible assets |
|
404 |
|
|
|
598 |
|
|
|
Stock-based
compensation expense |
|
879 |
|
|
|
877 |
|
|
|
Deferred
income taxes |
|
- |
|
|
|
388 |
|
|
|
Other
non-cash reconciling items, net |
|
(7 |
) |
|
|
81 |
|
|
|
Changes in operating assets and liabilities, excluding impact
of acquisition: |
|
|
|
|
|
|
Accounts receivable |
|
10,449 |
|
|
|
10,869 |
|
|
|
|
Unbilled receivables |
|
(3,571 |
) |
|
|
(630 |
) |
|
|
|
Inventories |
|
(80 |
) |
|
|
154 |
|
|
|
|
Prepaid expenses and other assets |
|
224 |
|
|
|
403 |
|
|
|
|
Accounts payable |
|
(576 |
) |
|
|
(1,717 |
) |
|
|
|
Accrued expenses |
|
(6,139 |
) |
|
|
(3,865 |
) |
|
|
|
Deferred revenues |
|
(2,778 |
) |
|
|
(3,310 |
) |
|
|
|
Other operating activities |
|
2,356 |
|
|
|
(14 |
) |
|
|
|
|
Total
cash used in operating activities |
|
(3,927 |
) |
|
|
(917 |
) |
Cash flows from investing activities: |
|
|
|
|
Purchases of property and equipment |
|
(113 |
) |
|
|
(196 |
) |
|
Purchases of marketable securities |
|
(3,830 |
) |
|
|
- |
|
|
Proceeds from sale and maturity of marketable securities |
|
2,009 |
|
|
|
- |
|
|
Other investing activities |
|
- |
|
|
|
119 |
|
|
|
|
|
Total
used in investing activities |
|
(1,934 |
) |
|
|
(77 |
) |
Cash flows from financing activities: |
|
|
|
|
Proceeds from issuance of common stock |
|
38 |
|
|
|
26 |
|
|
Payments of withholding tax on RSU vesting |
|
(10 |
) |
|
|
(9 |
) |
|
|
|
|
Total
cash provided by financing activities |
|
28 |
|
|
|
17 |
|
Effect of exchange rate changes on cash |
|
1,028 |
|
|
|
(584 |
) |
Net decrease in cash and cash equivalents |
|
(4,805 |
) |
|
|
(1,561 |
) |
Cash and cash equivalents, beginning of period |
|
43,661 |
|
|
|
28,411 |
|
Cash and cash equivalents, end of period |
$ |
38,856 |
|
|
$ |
26,850 |
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
We define non-GAAP loss from operations as U.S. GAAP operating
loss plus stock-based compensation expenses, amortization of
intangible assets, provision for loss contract, non-operating
professional fees and severance and other restructuring costs. We
discuss non-GAAP loss from operations in our quarterly earnings
releases and certain other communications as we believe non-GAAP
operating loss from operations is an important measure that is not
calculated according to U.S. GAAP. We use non-GAAP loss from
operations in internal forecasts and models when establishing
internal operating budgets, supplementing the financial results and
forecasts reported to our Board of Directors, determining a
component of bonus compensation for executive officers and other
key employees based on operating performance and evaluating
short-term and long-term operating trends in our operations. We
believe that the non-GAAP loss from operations financial measure
assists in providing an enhanced understanding of our underlying
operational measures to manage the business, to evaluate
performance compared to prior periods and the marketplace, and to
establish operational goals. We believe that the non-GAAP financial
adjustments are useful to investors because they allow investors to
evaluate the effectiveness of the methodology and information used
by management in our financial and operational decision-making.
Non-GAAP loss from operations is a non-GAAP financial measure
and should not be considered in isolation or as a substitute for
financial information provided in accordance with U.S. GAAP. This
non-GAAP financial measure may not be computed in the same manner
as similarly titled measures used by other companies. We expect to
continue to incur expenses similar to the financial adjustments
described above in arriving at non-GAAP loss from operations and
investors should not infer from our presentation of this non-GAAP
financial measure that these costs are unusual, infrequent or
non-recurring.
In managing and reviewing our business performance, we exclude a
number of items required by U.S. GAAP. Management believes that
excluding these items is useful in understanding the trends and
managing our operations. We provide these supplemental non-GAAP
measures in order to assist the investment community in seeing
SeaChange through the “eyes of management,” and therefore enhance
the understanding of SeaChange’s operating performance. Non-GAAP
financial measures should be viewed in addition to, not as an
alternative to, our reported results prepared in accordance with
U.S. GAAP. Our non-GAAP financial measures reflect adjustments
based on the following items:
Provision for Loss Contract. We entered a
fixed-price customer contract on a multi-year arrangement, which
included multiple vendors. As the system integrator on the project,
we are subject to any cost overruns or increases with these vendors
resulting in delays of acceptance by our customer. Delays of
customer acceptance on this project result in incremental
expenditures and require us to recognize a loss on this project in
the period the determination is made. As a result, we recorded an
estimated charge of $9.2 million in fiscal 2016. Subsequently,
because of changes in the scope of the project and negotiations
with the fixed-price customer, we recorded adjustments since fiscal
2016 totaling $4.7 million to reduce this estimated loss. We
believe that the exclusion of this line item amount, which is
recorded in cost of revenues – services, allows a comparison of
operating results that would otherwise impair comparability between
periods.
Amortization of Intangible Assets. We incur
amortization expense of intangible assets related to various
acquisitions that have been made in recent years. These intangible
assets are valued at the time of acquisition, are then amortized
over a period of several years after the acquisition and generally
cannot be changed or influenced by management after the
acquisition. We believe that exclusion of these expenses allows
comparisons of operating results that are consistent over time for
the Company’s newly-acquired and long-held businesses.
Stock-based Compensation Expense. We incur
expenses related to stock-based compensation included in our U.S.
GAAP presentation of cost of revenues and operating expenses.
Although stock-based compensation is an expense we incur and is
viewed as a form of compensation, the expense varies in amount from
period to period, and is affected by market forces that are
difficult to predict and are not within the control of management,
such as the market price and volatility of our shares, risk-free
interest rates and the expected term and forfeiture rates of the
awards.
Professional Fees - Other. We have excluded the
effect of legal and other professional costs associated with our
acquisitions, divestitures, litigation and strategic alternatives
because the amounts are considered significant non-operating
expenses.
Severance and Other Restructuring Costs. We
incur charges due to the restructuring of our business, including
severance charges and facility reductions resulting from our
restructuring and streamlining efforts and any changes due to
revised estimates, which we generally would not have otherwise
incurred in the periods presented as part of our continuing
operations.
The following table includes the reconciliations of our U.S.
GAAP loss from operations, the most directly comparable U.S. GAAP
financial measure, to our non-GAAP loss from operations for the
three months ended April 30, 2018 and 2017 (amounts in thousands,
except per share and percentage data):
|
SeaChange International, Inc. |
Preliminary Reconciliation of GAAP to
Non-GAAP |
(Unaudited, amounts in thousands, except per
share data and percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
|
April 30, 2018 |
|
April 30, 2017 |
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
3,091 |
|
|
$ |
- |
|
|
$ |
3,091 |
|
|
$ |
2,749 |
|
|
$ |
- |
|
|
$ |
2,749 |
|
|
Services |
|
|
11,844 |
|
|
|
- |
|
|
|
11,844 |
|
|
|
13,918 |
|
|
|
- |
|
|
|
13,918 |
|
|
Total revenues |
|
|
14,935 |
|
|
|
- |
|
|
|
14,935 |
|
|
|
16,667 |
|
|
|
- |
|
|
|
16,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
319 |
|
|
|
- |
|
|
|
319 |
|
|
|
554 |
|
|
|
- |
|
|
|
554 |
|
|
Services |
|
|
5,531 |
|
|
|
- |
|
|
|
5,531 |
|
|
|
5,980 |
|
|
|
(173 |
) |
|
|
5,807 |
|
|
Amortization of intangible assets |
|
|
178 |
|
|
|
(178 |
) |
|
|
- |
|
|
|
254 |
|
|
|
(254 |
) |
|
|
- |
|
|
Stock-based
compensation |
|
|
1 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
- |
|
|
Total cost of revenues |
|
|
6,029 |
|
|
|
(179 |
) |
|
|
5,850 |
|
|
|
6,790 |
|
|
|
(429 |
) |
|
|
6,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
8,906 |
|
|
|
179 |
|
|
|
9,085 |
|
|
|
9,877 |
|
|
|
429 |
|
|
|
10,306 |
|
|
Gross profit
percentage |
|
|
59.6 |
% |
|
|
1.2 |
% |
|
|
60.8 |
% |
|
|
59.3 |
% |
|
|
2.6 |
% |
|
|
61.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development |
|
|
5,484 |
|
|
|
- |
|
|
|
5,484 |
|
|
|
5,378 |
|
|
|
- |
|
|
|
5,378 |
|
|
Selling and
marketing |
|
|
3,386 |
|
|
|
- |
|
|
|
3,386 |
|
|
|
2,937 |
|
|
|
- |
|
|
|
2,937 |
|
|
General and
administrative |
|
|
3,994 |
|
|
|
- |
|
|
|
3,994 |
|
|
|
3,643 |
|
|
|
- |
|
|
|
3,643 |
|
|
Amortization of
intangible assets |
|
|
226 |
|
|
|
(226 |
) |
|
|
- |
|
|
|
344 |
|
|
|
(344 |
) |
|
|
- |
|
|
Stock-based
compensation expense |
|
|
878 |
|
|
|
(878 |
) |
|
|
- |
|
|
|
875 |
|
|
|
(875 |
) |
|
|
- |
|
|
Professional fees - other |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
21 |
|
|
|
(21 |
) |
|
|
- |
|
|
Severance and other
restructuring costs |
|
|
54 |
|
|
|
(54 |
) |
|
|
- |
|
|
|
2,147 |
|
|
|
(2,147 |
) |
|
|
- |
|
|
Total operating expenses |
|
|
14,022 |
|
|
|
(1,158 |
) |
|
|
12,864 |
|
|
|
15,345 |
|
|
|
(3,387 |
) |
|
|
11,958 |
|
|
(Loss) income
from operations |
|
$ |
(5,116 |
) |
|
$ |
1,337 |
|
|
$ |
(3,779 |
) |
|
$ |
(5,468 |
) |
|
$ |
3,816 |
|
|
$ |
(1,652 |
) |
|
(Loss) income
from operations percentage |
|
|
(34.3 |
%) |
|
|
9.0 |
% |
|
|
(25.3 |
%) |
|
|
(32.8 |
%) |
|
|
22.9 |
% |
|
|
(9.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
35,608 |
|
|
|
35,608 |
|
|
|
35,608 |
|
|
|
35,309 |
|
|
|
35,309 |
|
|
|
35,309 |
|
|
Diluted |
|
|
35,608 |
|
|
|
36,203 |
|
|
|
35,608 |
|
|
|
35,309 |
|
|
|
35,410 |
|
|
|
35,309 |
|
Non-GAAP operating (loss) income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.15 |
) |
|
$ |
0.04 |
|
|
$ |
(0.11 |
) |
|
$ |
(0.16 |
) |
|
$ |
0.11 |
|
|
$ |
(0.05 |
) |
|
Diluted |
|
$ |
(0.15 |
) |
|
$ |
0.04 |
|
|
$ |
(0.11 |
) |
|
$ |
(0.16 |
) |
|
$ |
0.11 |
|
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SeaChange International, Inc. |
Reconciliation of GAAP to Non-GAAP Gross
Margins |
(Unaudited, amounts in thousands, except
percentage data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
April 30, 2018 |
|
April 30, 2017 |
|
Total |
Product |
Service |
|
Total |
Product |
Service |
|
|
|
|
|
|
|
|
Revenue |
$ |
14,935 |
|
$ |
3,091 |
|
$ |
11,844 |
|
|
$ |
16,667 |
|
$ |
2,749 |
|
$ |
13,918 |
|
|
|
|
|
|
|
|
|
GAAP Gross Profit |
$ |
8,906 |
|
$ |
2,765 |
|
$ |
6,141 |
|
|
$ |
9,877 |
|
$ |
2,169 |
|
$ |
7,708 |
|
Exclude
Provision for Loss Contract |
|
- |
|
|
- |
|
|
- |
|
|
|
173 |
|
|
- |
|
|
173 |
|
Exclude
amortization of intangible assets |
|
178 |
|
|
7 |
|
|
171 |
|
|
|
254 |
|
|
26 |
|
|
228 |
|
Exclude
stock based compensation |
|
1 |
|
|
- |
|
|
1 |
|
|
|
2 |
|
|
- |
|
|
2 |
|
Non-GAAP Gross
Profit |
$ |
9,085 |
|
$ |
2,772 |
|
$ |
6,313 |
|
|
$ |
10,306 |
|
$ |
2,195 |
|
$ |
8,111 |
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Profit,
% |
|
60.8 |
% |
|
89.7 |
% |
|
53.3 |
% |
|
|
61.9 |
% |
|
79.8 |
% |
|
58.3 |
% |
|
|
|
|
|
|
|
|
The following table reconciles the Company’s forecasted U.S.
GAAP operating (loss) income per share to the Company’s forecasted
non-GAAP operating income per share for the Company’s second fiscal
quarter and full fiscal 2019:
|
SeaChange International, Inc. |
Reconciliation of GAAP to Non-GAAP
Guidance |
(Unaudited, amounts in thousands, except per
share data) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
July 31, 2018 |
|
January 31, 2019 |
GAAP revenue
guidance |
$ |
17,000 |
|
to |
$ |
19,000 |
|
|
$ |
80,000 |
|
to |
$ |
90,000 |
GAAP (loss) income from
operations per basic or diluted share |
$ |
(0.08 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.09 |
Exclude
stock compensation expense |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.08 |
|
|
|
0.08 |
Exclude
amortization of intangible assets |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.08 |
|
|
|
0.08 |
Non-GAAP (loss)
income from operations per basic or diluted share |
$ |
(0.04 |
) |
|
$ |
0.00 |
|
|
$ |
0.10 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
SeaChange International, Inc. |
Supplemental Schedule - Revenue
Breakout |
(Unaudited, amounts in thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
April 30, |
|
|
2018 |
|
2017 |
|
|
|
|
|
Product Revenues: |
|
|
|
|
Video
Platform |
|
$ |
2,815 |
|
$ |
1,848 |
Advertising |
|
|
- |
|
|
- |
User
Experience |
|
|
17 |
|
|
118 |
Hardware |
|
|
259 |
|
|
684 |
Third-party Products |
|
|
- |
|
|
99 |
Total
Product Revenues |
|
|
3,091 |
|
|
2,749 |
|
|
|
|
|
Service Revenues: |
|
|
|
|
Maintenance and Support |
|
|
7,222 |
|
|
8,264 |
SaaS |
|
|
130 |
|
|
1,394 |
Professional Services - Video Platform |
|
|
4,371 |
|
|
4,182 |
User
Experience |
|
|
121 |
|
|
78 |
Total
Service Revenues |
|
|
11,844 |
|
|
13,918 |
Total
Revenues |
|
$ |
14,935 |
|
$ |
16,667 |
|
|
|
|
|
Contact:
InvestorsMary T. ConwayConway
Communications1-781-772-1679marytconway@comcast.net
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