SeaChange Reports Fiscal First Quarter 2023 Financial and Operational Results June 08,2022 3:06PMBOSTON, June 08, 2022 (GLOBE NEWSWIRE) -- SeaChange International, Inc. (NASDAQ: SEAC), ( SeaChange or the Company ) a leading provider of video delivery, advertising, streaming platforms, and emerging FAST (Free Ad-Supported Streaming TV services) development, today reported financial and operational results for the fiscal first quarter ended April 30, 2022.
Fiscal First Quarter 2023 and Recent Highlights
Renewed long-term support and services agreements with two major Operator TV customers in North America
Commenced onboarding of two additional StreamVid customers in Latin America and EMEA, generating traffic and revenue on SeaChange's Software-as-a-Service (SaaS) cloud platform
Advanced our Development Plus project with VIDAA to jointly develop VIDAA's FAST Channel platform and streaming services for Hisense
Introduced feature enhancements to our recently launched Xstream platform to support content monetization on Connected TVs. These features include improvements to contextual advertising in FAST channel and AVOD formats for content owners
Grew revenue 33% year-over-year to $6.7 million, as the Company continues to demonstrate success with its product and service offerings within its target markets
Maintained lower operating cost profile with non-GAAP operating expenses of $4.7 million in the fiscal first quarter of 2023, a 17% year-over-year decrease
Management Commentary
SeaChange is evolving into a more advanced software development platform, as we accomplished several new milestones as we begin our Fiscal 2023 year, said SeaChange's President and Chief Executive Officer Peter D. Aquino. We continue to support our customers with SeaChange's core video and advertising products, while we successfully initiated our pivot towards enhanced services, such as: streaming services, targeted and programmatic advertising, and Development Plus efforts aimed at Connected TVs, such as FAST channel development. Our core business produced 33% revenue growth year-over-year while our costs have reduced dramatically, allowing the Company to look forward to a better than break-even outlook. While we develop future services organically and with partners, we will strive to leverage our platform to work towards sustainable profitable growth and look to gain scale.
Fiscal First Quarter 2023 Financial Results
Total revenue was $6.7 million, a decrease of 22% compared to $8.6 million in the fourth quarter of fiscal 2022 and an increase of 33% compared to $5.1 million in the first quarter of fiscal 2022. The sequential decrease was primarily due to a favorable one-time perpetual license sale for over $2 million in the fiscal fourth quarter of 2022.
Product revenue was $2.8 million (or 42% of total revenue), compared to $5.2 million (or 60% of total revenue) in the fourth quarter of fiscal 2022 and $1.6 million (or 32% of total revenue) in the first quarter of fiscal 2022. Service revenue was $3.9 million (or 58% of total revenue) compared to $3.4 million (or 40% of total revenue) in the fourth quarter of fiscal 2022 and $3.4 million (or 68% of total revenue) in the first quarter of fiscal 2022.
Gross profit was $3.2 million (or 48% of total revenue), a decrease of 43% compared to $5.7 million (or 66% of total revenue) in the fourth quarter of fiscal 2022 and an increase of 14% compared to $2.8 million (or 56% of total revenue) in the first quarter of fiscal 2022.
Total non-GAAP operating expenses were $4.7 million, compared to non-GAAP operating expenses of $4.5 million in the fourth quarter of fiscal 2022 and $5.6 million in the first quarter of fiscal 2022.
GAAP loss from operations totaled $2.7 million, compared to a GAAP loss from operations of $1.1 million in the fourth quarter of fiscal 2022 and $3.8 million in the first quarter of fiscal 2022.
GAAP net loss totaled $3.0 million, or $(0.06) per basic share, compared to a GAAP net loss of $1.5 million, or $(0.03) per basic share, in the fourth quarter of fiscal 2022 and $4.1 million, or $(0.10) per basic share, in the first quarter of fiscal 2022.
Non-GAAP loss from operations totaled $1.5 million, or $(0.03) per basic share, compared to non-GAAP income from operations of $1.2 million, or $0.02 per fully diluted share, in the fourth quarter of fiscal 2022, and non-GAAP loss from operations of $2.8 million, or $(0.07) per basic share, in the first quarter of fiscal 2022.
Ended the first quarter of fiscal 2023 with cash and cash equivalents of $16.5 million and no debt.
SeaChange / Triller Transaction Update
The parties continue to work towards satisfying the requirements of the merger agreement signed between the parties on December 22, 2021 (the Merger Agreement ). In accordance with the Merger Agreement, the parties must close the transaction by June 30, 2022, which date can only be extended by mutual consent.
Fiscal First Quarter 2023 Results Conference Call
Considering SeaChange's entry into the Merger Agreement and plan of merger with Triller Hold Co LLC, SeaChange will not host a conference call or webcast to discuss its fiscal first quarter 2023 results.
About SeaChange International, Inc.
SeaChange International, Inc. (NASDAQ: SEAC) provides first-class video streaming, linear TV, and video advertising technology for operators, content owners, and broadcasters globally. The SeaChange technology enables operators, broadcasters, and content owners to cost-effectively launch and grow premium linear TV and direct-to-consumer streaming services to manage, curate, and monetize their content. SeaChange helps protect existing and develop new and incremental advertising revenues for traditional linear TV and streaming services with its unique advertising technology. SeaChange enjoys a rich heritage of near
