ACTON, Mass. (Sept. 1, 2016) SeaChange International, Inc. (NASDAQ: SEAC) today reported second quarter fiscal 2017 revenue of $18.5 million and U.S. GAAP loss from operations of $11.7 million, or $0.33 per basic share, compared to second quarter fiscal 2016 revenue of $27.9 million and U.S. GAAP loss from operations of $4.8 million, or $0.14 per basic share. The Company's U.S. GAAP second quarter fiscal 2017 results included non-GAAP charges of $4.1 million, which consisted primarily of severance and other restructuring costs, stock-based compensation, amortization of intangible assets from prior acquisitions, and other non-operating expense professional fees, while the second quarter fiscal 2016 results included $3.5 million of similar non-GAAP charges. Non-GAAP loss from operations for the second quarter of fiscal 2017 was $7.6 million, or $0.21 per basic share, compared to the second quarter of fiscal 2016 non-GAAP loss from operations of $1.3 million, or $0.04 per basic share.
For the first six months of fiscal 2017, the Company posted revenue of $40.0 million and a U.S. GAAP loss from operations of $21.2 million, or $0.61 per basic share compared to revenue of $51.0 million and U.S. GAAP loss from operations of $14.2 million, or $0.42 per basic share in the same prior period. The Company posted a non-GAAP loss from operations for the first six months of fiscal 2016 of $14.4 million, or $0.41 per basic share compared to a non-GAAP loss from operations of $8.1 million, or $0.24 per basic share for the same period of the prior fiscal year.
Although we have made significant progress in executing improvements to the Company's operations, introducing new products, expanding our sales capability, and building a pipeline for the second half of fiscal 2017, the financial results from our actions are taking longer to achieve. We continue to make good progress on converting our legacy back office customer base to Adrenalin and upgrading our existing Adrenalin customers to our latest release, which supports ultra high definition video and offers expanded features and functionality, said Ed Terino, Chief Executive Officer, SeaChange.
During the second quarter, we secured a large Adrenalin upgrade deal with a North American customer, as well as two Axiom to Adrenalin migrations in the Americas, and a new Rave OTT win with an international distributor of film and television content. We are encouraged by the continued growth in our revenue pipeline for the second half of fiscal 2017 and remain confident in our ability to attain the intermediate-term targets that we introduced earlier this year.
Peter Faubert, Chief Financial Officer, SeaChange, said, We continue to tightly control our expenses and are in the process of finalizing additional cost reduction measures with the goal of restoring SeaChange to profitability and positive cash flow later this year. In addition, we remain focused on improving collections to reduce working capital needs and increase operating cash flow.
SeaChange ended the second quarter of fiscal 2017 with cash, cash equivalents and marketable securities of $51 million, and no debt outstanding.
Following a review of our operations, liquidity and funding, and investment in our product roadmap, we determined that the ability to access certain amounts of foreign earnings would provide greater flexibility to meet the Company's working capital needs. Accordingly, in the second quarter of fiscal 2017, SeaChange withdrew the permanent reinvestment assertion on $58.6 million of earnings generated by the Company's Irish operations and recorded a deferred tax liability of $14.7 million related to the foreign income taxes on these undistributed earnings. The deferred tax liability will not result in cash taxes in the short term and SeaChange is working to try to minimize the potential cash tax impact of this move in future periods.
Outlook
SeaChange anticipates third quarter fiscal 2017 revenue to be in the range of $20 million to $23 million, U.S. GAAP loss from operations to be in the range of $0.20 to $0.25 per basic share, and non-GAAP loss from operations to be in the range of $0.15 to $0.20 per basic share. For full fiscal 2017, SeaChange now anticipates revenue to be in the range of $83 million to $88 million, U.S. GAAP loss from operations to be in the range of $0.85 to $0.95 per basic share, and non-GAAP operating loss to be in the range of $0.50 to $0.60 per basic 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 and scope of restructuring activities, and stock price fluctuations. The Company has made no provision for restructuring expense in its outlook for the third quarter of fiscal 2017.
Conference Call
The Company will host a conference call to discuss its second quarter fiscal 2017 results at 5:00 p.m. ET today, Thursday, September 1, 2016. The call may be accessed at 877-407-8037 (U.S.) and 201-689-8037 (international) and via live webcast at www.schange.com/IR. A replay of the conference call will be available by phone through September 15, 2016 at 877-660-6853 (U.S.) or 201-612-7415 (international), conference ID 1364-3249. The webcast will be archived on the investor relations section of the Company's website at www.schange.com/IR.
About SeaChange International
Enabling our customers to deliver billions of premium video streams across a matrix of Pay TV and OTT platforms, SeaChange (Nasdaq: SEAC) empowers service providers, broadcasters, content owners and brand advertisers to entertain audiences, engage consumers and expand business opportunities. As a three-time Emmy award-winning organization with 23 years of experience, we give media businesses the content management, delivery and
