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May 19, 2005

SeaChange Results Fall Short Due to "Slowdown in US Cable VOD Spending"

On April 3rd, I outlined the challenges that SeaChange faces in its quest to sell VOD servers, concluding "that anyone holding SEAC stock might want to sell it." Read More >>

Last week, VOD equipment provider, SeaChange International released preliminary financial results for its fiscal 1st quarter, ended April 30th. For the second quarter running, the results have fallen short of the company's previously issued guidance.

The company estimates that revenues should range between $30 million and $32 million; it had previously called for revenues of $40 million, and says that the lower-than-expected Q1 performance was due to "unanticipated delays in the booking, shipment or acceptance of certain orders."

Because of the revenue shortfall, the company anticipates net losses of between $0.00 and $0.03 per share, compared to its previously issued guidance of net income of $0.03 per share.

In a prepared statement, SeaChange president and CEO, Bill Styslinger, struck a cautiously optimistic note:

"There is a temporary slowdown in US cable VOD spending, the impact of which we had expected to be offset through other markets and product lines," he said. "Worldwide, the market opportunity remains large and, given that US cable operators have started their digital simulcast deployments, we see another wave of growth coming in the sector. With the strength of our software, systems and support, we believe we will to continue to lead this market."

Posted by Martino Mingione on May 19, 2005 06:44 AM

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