SeaChange Reports Fiscal Second Quarter 2022 Financial and Operational Results

SeaChange Reports Fiscal Second Quarter 2022 Financial and Operational Results Download as PDF September 13, 2021 4:05pm EDT

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- Execution of Growth Strategy Drives 29% Sequential Increase in Revenue; Gross Margin Expands to 63%, Up 700 Basis Points Compared to the Prior Quarter

- SeaChange Positioned to Capitalize on Convergence of Streaming and Ad Tech with Leading Cloud-Based OTT and Advanced Advertising Platform

BOSTON, Sept. 13, 2021 (GLOBE NEWSWIRE) -- SeaChange International, Inc. (NASDAQ: SEAC), a leading provider of video delivery platforms, today reported financial and operational results for the fiscal second quarter ended July 31, 2021.

Fiscal Second Quarter 2022 and Recent Highlights

Introduced StreamVid, a cloud-based OTT platform to help operators and content owners manage and optimize their streaming businesses.

Selected by Screen iL to launch streaming platform featuring Israeli TV and film content for Israeli ex-pats and consumers worldwide.

Chosen by Chicken Soup for the Soul Entertainment (NASDAQ: CSSE) as its streaming and advanced advertising platform for new Popcornflix App.

Realized 29% sequential revenue growth and expanded gross margin to 63%, driven by growth and profitability initiatives.

Maintained a strong balance sheet with $18.9 million in cash and cash equivalents and no debt.

Decreased operating expenses by 17% compared to the second quarter of last year due to ongoing efficiency measures.

Management Commentary

As our results for the second quarter demonstrate, SeaChange's growth strategy focused on the video streaming and Ad Tech markets is gaining traction, said Executive Chairman Robert Pons. In particular, we are capitalizing on the explosive growth in streaming, which was exemplified by the 29% sequential revenue growth we delivered in Q2, along with robust gross profit margins and improved profitability. Our increasing financial momentum reveals the traction we're achieving on our key sales initiatives, including enhancing our product portfolio, securing new streaming customers, extending our footprint as a video Ad Tech provider, and driving more predictable growth. Today, SeaChange enables content owners and cable companies to deliver profitable TV and streaming services to more than 100 million subscribers across 35,000 linear channels and serving up over 100 million ads monthly.

Chris Klimmer, senior vice president of global sales and marketing at SeaChange, commented: SeaChange is well-positioned to capitalize on the intersection of the explosive growth in all things Ad Tech and streaming. Our enhanced product positioning and recent customer wins serve as proof points that we are poised to take advantage of the major trends within the broadcast industry. SeaChange has the technology assets and expertise to provide cable operators and streaming content owners globally with advanced advertising technology, and a turn-key managed services streaming enablement platform. We do this by helping them to unlock additional revenue streams, maximize the ROI of user and content acquisition costs and streamline operational costs while enhancing operational efficiencies.

Pons added: We have entered the third quarter with significant momentum and a robust pipeline of sales opportunities. We believe we are just starting to scratch the surface of streaming and Ad Tech opportunities. Longer term, we believe our continued execution on our strategic plan will drive scale, capture market share, and create even greater value for both our customers and shareholders.

Fiscal Second Quarter 2022 Financial Results

Total revenue was $6.5 million, compared to $5.1 million in the first quarter of fiscal 2022. Product revenue was $2.7 million (or 41% of total revenue), an improvement compared to $1.6 million (or 32% of total revenue) in the first quarter of fiscal 2022. Service revenue was $3.8 million (or 59% of total revenue) compared to $3.4 million (or 68% of total revenue) in the first quarter of fiscal 2022.

Revenue backlog, excluding legacy maintenance, at quarter end totaled $17.7 million.

Gross profit was $4.1 million (or 63% of total revenue), compared to $2.8 million (or 56% of total revenue) in the first quarter of fiscal 2022.

Total Non-GAAP operating expenses were $5.4 million, an improvement compared to Non-GAAP operating expenses of $5.6 million in the first quarter of fiscal 2022.

GAAP loss from operations totaled $2.5 million, an improvement compared to a GAAP loss from operations of $3.8 million in the first quarter of fiscal 2022.

GAAP net income totaled $0.2 million, an improvement from a GAAP net loss of $4.1 million, or $(0.10) per basic share, in the first quarter of fiscal 2022.

Non-GAAP loss from operations totaled $1.3 million, or $(0.03) per basic share, an improvement from non-GAAP loss from operations of $2.8 million, or $(0.07) per basic share, in the first quarter of fiscal 2022.

Conference Call

SeaChange will host a conference call today (September 13, 2021) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these results.

SeaChange executive management will host the call, followed by a question-and-answer period.

U.S. dial-in number: 877-407-8037

International number: 201-689-8037

Meeting Number: 13722323

Please call the conference telephone number approximately 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of SeaChange's website.

About SeaChange International, Inc.

SeaChange International (NASDAQ: SEAC

LINK:	https://www.seachange.com/news-and-events/press-releases/detail/465/se...
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