SeaChange International Reports First Quarter Fiscal 2019 Results June 6th, 2018
ACTON, Mass., June 06, 2018 (GLOBE NEWSWIRE) 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 Impact
As 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.
Outlook
SeaChange 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 Call
The 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
