SeaChange International Reports Fourth Quarter and Fiscal Year 2020 Financial Results Download as PDF April 06, 2020 4:05pm EDT
Related Documents Audio
Earnings Webcast
10-K Filing PDF HTML
10-K/A Filing PDF HTML
XBRL ZIP XLS HTML
Presentation PDF
Conference Call Script PDF
Record Number of Framework Wins in Q4 Drives 14% Revenue Increase
Non-GAAP Income from Operations of $4.8 million and
GAAP Income from Operations of $3.6 million
WALTHAM, MA / ACCESSWIRE / April 6, 2020 / SeaChange International Inc. (NASDAQ:SEAC), a leading provider of cloud and on-premise video delivery platforms worldwide, today reported financial results for the fourth quarter and fiscal year ended January 31, 2020.
Management Commentary
The fourth quarter represented an incremental step forward and was a strong finish to a transformational year for SeaChange, said CEO Yossi Aloni. Our success in fiscal 2020 can be summed up best through a handful of key operating metrics and milestone achievements, most notably the 26 significant Framework deals we closed, our expanded gross margins at 65%, the more than $12 million in annualized cost savings we realized throughout the year, and the $4.8 million we recorded in non-GAAP operating income during the fourth quarter.
As we completed our transition to becoming a pure software and cloud solutions provider, we faced a rapid decline in our legacy revenue, which we were prepared for and which is now behind us. However, with the Frameworks superior technology and disruptive value-based go-to-market strategy, we successfully grew in our core business segment and were able to deliver $36.8 million in new Framework revenue since we began selling the Framework solution in April 2019. In the fourth quarter, our Framework revenue made up 68% of total revenue, reflecting our transition to a software-centric business model, which we believe provides us with tremendous predictability and a favorable margin profile.
We entered the new fiscal year with significant operating momentum and the most robust pipeline in our companys history. Even prior to the advent of COVID-19, the TV and video industry was in the midst of an unprecedented shift in how content is being consumed at home. This shift has been accelerated as more consumers stay at home in the wake of COVID-19, and we believe SeaChange is ideally positioned to capitalize on this long-term trend with our managed, cloud-based video delivery service. SeaChange allows content providers to meet the growing demand for content by enabling them to launch direct-to-consumer video services in a matter of days. During Q4 we enhanced the Framework platform with the industrys first end-to-end cloud advertisement management, placement and insertion solution for both live and on demand TV. This new feature allows TV providers to offer a web-online like workflow for its advertisers with real-time, dynamic and programmatic insertion, which enables TV providers to both better utilize their ad-inventory and win web-centric advertisers.
While the current global economic uncertainty makes our near-term visibility with respect to new bookings challenging, we are seeing increased interest in our Framework solution as operators look to preserve their existing revenue base and to find new sources of revenue, and importantly, to reduce operating expenses. SeaChanges Framework is the only solution in the industry that enables operators to lower costs by approximately 50% while helping them attract new subscribers and to better monetize their existing installed base. SeaChange is expanding upon its robust advertising solution with the development of a new module that will revolutionize how a customers unsold and underutilized ad inventory is sold. At this stage the company is testing it with a few customers, and more will be shared on this development in the near future. We believe that these factors, combined with the positive underlying industry trends bode exceptionally well for SeaChange for the foreseeable future.
Looking ahead, the progress we achieved on our key financial and operational objectives in fiscal 2020 gives us confidence in our ability to realize our mid-term target model of driving sustainable, double-digit revenue growth and a non-GAAP operating income margin of over 15%.
Fourth Quarter Fiscal 2020 and Recent Operational Highlights
Secured a record 11 customer wins with multi-year commitments for the Framework video delivery platform, amounting to more than $15 million in total contract value and bringing the total number of Framework customers to 26 with more than $54 million in total contract value.
Completed the transition to a 100% software and cloud solutions provider.
Achieved a 24% increase in bookings to $17.3 million from $13.9 million in the same period last year.
Completed numerous cost-optimization initiatives, resulting in more than $12 million in annualized cost savings.
Fourth Quarter Fiscal 2020 Financial Results
Total revenue increased 14% to $19.3 million from $17.0 million in the same period last year. Product revenue increased 69% to $13.2 million (69% of total revenue) from $7.8 million (46% of revenue) in the same period last year. Service revenue decreased 33% to $6.1 million (31% of total revenue) from $9.1 million (54% of total revenue) in the same period last year.
Gross profit increased by 29% to $14.0 million (73% of total revenue) from $10.9 million (64% of total revenue) in the same period last year.
GAAP income from operations totaled $3.6 million, an improvement from a loss of $19.9 million in the same period last year.
Non-GAAP income from operations totaled $4.8 million, or $0.13 per basic share, an improvement from a loss of $1.2 million, or $(0.03) per basic share, in the same period last year.
GAAP net loss totaled $43,000, or $(0.00) per basic s
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
14/11/2026
Longtime MLB Network employee David Maybrown passed away Thursday at the age of 57. David joined MLB Network in 2009 shortly after its launch, beginning as an i...
14/11/2026
Modular innovators introduce two guitar-based products
ADDAC System's recently introduced Four String Series makes it possible to integrate physical str...
14/11/2026
Marcelo Dai's Live Session Captured with URSA Cine Immersive
Brie Clayton November 14, 2026
0 Comments
Artist takes viewers on an immersive journe...
14/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
14/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
14/11/2026
Newest Lenses, Horizon Anamorphic Seminar & Guided Lens Character Experience Highlight Creative Possibilities
At the 2026 Toru CAMERIMAGE Film Festival, ZEISS...
14/11/2026
Sonnet Announces Black Friday Sale on Select Products
Brie Clayton November 14, 2026
0 Comments
WHAT: Sonnet Technologies is having a sale on a select...
14/11/2026
Berklee Alumni Shine at the 2026 Latin Grammy Awards This year's winners included songwriters, engineers, and performers who contributed to acclaimed reco...
13/11/2026
The UIM E1 Series wraps its third season this week with the Bombay Sapphire E1 Miami GP, Nov. 11-14, on Biscayne Bay at the Miami Seaplane Base on Watson Island...
13/11/2026
In-venue and creative video staffers at the professional and collegiate level ha...
13/11/2026
Singer-songwriter Benson Boone will headline entertainment for the Discover NHL Winter Classic between the Utah Mammoth and Colorado Avalanche at Rice-Eccles St...
13/11/2026
Blackmagic Design has announced the Blackmagic Ambisonic Microphone, a 7th order ambisonic microphone array that captures spatial audio for immersive video prod...
13/11/2026
SMPTE has announced that The Studio B&H and Riedel Communications will provide the video infrastructure and communications technology for the Solutions Hub at t...
13/11/2026
The Hollywood Professional Association (HPA) has announced the theme and program focus for the 2027 HPA Tech Retreat, which takes place Feb. 14-18, 2027, in La ...
13/11/2026
Football Manager 27 Touch is available on Apple Arcade starting today. The game ...
13/11/2026
MotoGP has announced a two-year media rights agreement with ESPN covering the Un...
13/11/2026
Apple Sports, the free iPhone app, has added the Ultimate Fighting Championship (UFC) to its lineup of supported sports, in time for Saturday's UFC 334. The...
13/11/2026
The NBA and Fanatics Studios, the joint venture between Fanatics and entertainme...
13/11/2026
ESPN held its annual EDGE Innovation Conference last night and offered up an ove...
13/11/2026
Regional sports network gives Ithaca College, SUNY Cortland students a platform to thrive
One of the biggest games in Division III college football will be pla...
13/11/2026
Studer-inspired 500-series PWM compressor unveiled
The HLabs range already includes a couple of Studer-inspired offerings in the form of the PRE169 and EQ16...
13/11/2026
Download Now!
To view the white paper, please enter the following details:
--
First Name* First Name
Company*
Country* Please select your countryA...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Blue Lucy, the workflow orchestration and integration platform for broadcasters, rights owners and localisation companies, today announced an integration with c...
13/11/2026
Krotos announces Black Friday offers on Studio Pro and Studio Max
Brie Clayton November 12, 2026
0 Comments
First-year annual plans start at US$195.99...
13/11/2026
Blackmagic Design Announces Blackmagic Ambisonic Microphone
Brie Clayton November 12, 2026
0 Comments
New 7th order ambisonic microphone with 108 MEMS...
13/11/2026
Meet the Berklee Student Setting Planetary Motion to Music With his compositional platform SoniKosmos, Javier Roqueni aims to make the universe the ultimate i...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , er...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , er...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Amagi, the media industry cloud company, today announced a partnership with Golden Times Media Technology (stock code 920021.BJ), a Beijing-based media and tech...
13/11/2026
CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, together with its Malaysian partner, Cedar ...
13/11/2026
SMPTE, the home for media professionals, technologists and engineers, today announced that The Studio B&H and Riedel Communications will provide the video infra...
13/11/2026
iWedia, a global leader in connected TV software solutions, will present its software-first approach to DRAM optimization at Android TV APAC Summit 2026 in Bang...
13/11/2026
Beginning today, November 13, Apple HomeView is available for purchase at Apple Store locations, on the Apple Store online, and in the Apple Store app in select...
13/11/2026
From pediatric research to smart hospitals, AI is helping care teams spend less time on routine tasks and more time with patients.
Health systems and startups...
12/11/2026
Industry leaders examine how Dynamic Media Facility, Media eXchange Layer, and c...
12/11/2026
The junior Tar Heel is embracing the technical and creative challenges of live production while emerging as a leader and mentor in the control room...
12/11/2026
Gracenote, Nielsen's content intelligence business, has released its fifth a...
SeaChange International Reports Fourth Quarter and Fiscal Year 2020 Financial Results Download as PDF April 06, 2020 4:05pm EDT 
