SeaChange International Issues Business Update in Response to Global Impact of COVID-19 Download as PDF May 21, 2020 4:45pm EDT
WALTHAM, MA / ACCESSWIRE / May 21, 2020 / SeaChange International Inc. (NASDAQ:SEAC), a leading provider of cloud and on-premise video delivery platforms worldwide, has provided an update on the impact of recent macro events on its operations, as well as actions the Company has taken in response to the COVID-19 pandemic.
Fiscal First Quarter 2021 Financial Impact
Similar to the majority of global industries, the video delivery technology industry has been meaningfully impacted by the effects of COVID-19. The intensifying COVID-19 crisis during March and April 2020 significantly slowed customer engagement due to customers working from home, and many customers focusing their resources on remote networking support and servicing the growing demand for bandwidth due to higher network usage caused by COVID-19 confinement. This has caused a number of SeaChanges potential customers to delay making a final decision regarding their Framework engagements. Based on the foregoing, management currently expects total revenue for the fiscal first quarter ended April 30, 2020 to be lower than the comparable period in fiscal 2020. Management believes a majority of the Companys customers have simply delayed making a final decision regarding their originally planned engagements, pending the return to a more normal operating environment.
Company Response and Measures to Improve Financial Resiliency
The COVID-19 pandemic has severely impacted SeaChanges customers ability to conduct business, and as set forth above, its customers have delayed making technology decisions regarding their delivery infrastructure. As a result, SeaChange has shifted its business operations to further reduce our operating expenses and to align its strategy with current market conditions. In late April and May, the Company instituted additional cost-optimization measures. These measures are in addition to the actions the Company took in fiscal 2020 that resulted in more than $12 million in annualized cost savings.
In line with these measures, the Company is continuing to take actions to improve its working capital position and to ensure the business is positioned to not only mitigate the present macro risks but also to capitalize on the anticipated demand for its solutions during the second half of fiscal 2021. Management expects to see stronger demand for the Framework solution in the second half of fiscal 2021 as TV providers look to leverage SeaChanges technology to reduce operating expenses and monetize their growing unsold advertising capacity.
Business Outlook
As indicated in the Companys full year fiscal 2020 earnings call on April 6, 2020, management anticipated to be in a position to provide more clarity regarding its full year fiscal 2021 guidance by this time. Unfortunately, the effects of COVID-19 have been longer lasting than we initially expected, with many of the countries in which SeaChanges prospective customers are based continuing to be in various stages of government-mandated lockdown, causing the Company to be unable to provide more detailed guidance at this time. The Company intends to provide fiscal 2021 guidance when management has more visibility with respect to returning to a more normal operating environment.
Management Commentary
The effects of COVID-19 across the global economy, including the TV and video technology industry specifically, had a pronounced impact on our ability to finalize the closure of new engagements during the first quarter, as customers are focused on their internal operations and supporting work-from-home enablement tasks, said CEO Yossi Aloni. Recognizing the ongoing uncertainty from the current crisis and its related effects on the commercial activity, we have enacted several precautionary measures to further ensure our business remains financially secure and our long-term viability remains intact. In late April, we implemented a new plan to reduce our operating costs and further optimize our organization. We will continue pursuing the necessary measures to ensure SeaChange emerges from this situation in a strong financial and operational position.
About SeaChange International, Inc.
SeaChange International (NASDAQ:SEAC) powers hundreds of cloud and on-premises platforms with live TV and video on demand (VOD) for more than 50 million subscribers worldwide. SeaChanges end-to-end solution, the Framework, enables operators and content owners to cost-effectively launch a direct-to-consumer video service. This includes back-office, media asset management, ad management, analytics and a client application for set-top boxes (STB), Smart-TVs and mobile devices. Framework is available as a product, Software-as-a-Service (SaaS) or managed service, and can be deployed on-premises, in the cloud or as a hybrid. For more information, please visit www.seachange.com.
Safe Harbor Provision
Certain statements in this press release may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, as amended to date. Forward-looking statements can be identified by words such as may, might, will, should, could, expects, plans, anticipates, believes, seeks, intends, estimates, predicts, potential or continue, the negative of these terms and other comparable terminology. Examples of forward-looking statements include, among others, statements we make regarding our ability to grow our revenue and gross margins; actual annualized cost savings to be realized as a result of our recent cost-saving measures; the timing and outcome of potential and current customers decision-making regarding future engagements with the Company in light of the effects of the COVID-19 pandemic; the future predictability of d
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
06/04/2026
Michigan legends bring a new voice to the broadcast as TNT Sports and CBS Sports...
06/04/2026
From high school sports all the way up to the major leagues, building high-quali...
06/04/2026
Quickplay, an AI company for the media and entertainment industry, has been accepted into the Advanced tier of the TwelveLabs Ecosystem Partner Program. Quickpl...
06/04/2026
Grass Valley has announced the Future Playmakers Program, a global initiative to...
06/04/2026
El l der de operaciones impulsa la producci n en estudio mientras encuentra insp...
06/04/2026
The ops leader helps lead the charge in studio for the Spanish-language broadcas...
06/04/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
06/04/2026
The National Hockey League (NHL), in partnership with Verizon and the New Jersey Devils, today announced the opening of the NHL Innovation Lab powered by Verizo...
06/04/2026
Rock League, a new professional curling league, has announced that ESPN+ will stream its inaugural 2026 season for fans in the United States. The first Rock Lea...
06/04/2026
Advanced Systems Group has announced the appointment of Andrea (Andy) Cummis as Vice President of Systems Design and Engineering. In this role, she will lead de...
06/04/2026
Backed by Bolt Ventures, the venture brings Bryson DeChambeau, Grant Horvat, and...
06/04/2026
With this environment we can start that collaboration even earlier because we ca...
06/04/2026
Like the immortal lives of vampires, some stories never really end. That's t...
06/04/2026
As podcasting continues to evolve, growth increasingly means building beyond aud...
06/04/2026
Multiband dynamics plug-in enhanced
California-based developer FSK Audio have released a significant update for their innovative multiband dynamics processo...
06/04/2026
Share official & user-created full-rig presets
IK Multimedia's latest TONEX update makes it possible for users of the popular amp and effects modelling ...
06/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/04/2026
Dalet Showcases Dalia Agentic AI and End-to-End Media Workflows at NAB Show 2026
Brie Clayton April 6, 2026
0 Comments
Dalet, a leading technology and...
06/04/2026
OpenDrives Shows Off Sports Expertise in Sports Business Hub located in NAB Show...
06/04/2026
Proton to Demonstrate 3D Application at NAB 2026
Brie Clayton April 6, 2026
0 Comments
Yet further creative potential unleashed through innovation in ...
06/04/2026
Autoscript Highlights Voice-Driven Prompting and PTZ Solutions at NAB 2026
Brie Clayton April 6, 2026
0 Comments
Experience Autoscript Voice, PTZ prom...
06/04/2026
Mediaproxy Highlights Significant Enhancements to its LogServer suite at NAB Sho...
06/04/2026
Wayne, N.J., April 6th, 2026 Phantom High-Speed announces the release of PCC 4...
06/04/2026
April 6th, 2026
TRIBECA STUDIOS AND LILLY ANNOUNCE WINNERS OF INAUGURAL VITAL...
06/04/2026
Back to All News
Netflix Expands Kids Entertainment Lineup With Playground App ...
05/04/2026
Tackles all reported bugs!
SoundBridge have just announced the launch of a new update that introduces a couple of minor changes to their remote collaboratio...
04/04/2026
The University of Arizona's Men's Basketball team has only loss twice th...
04/04/2026
1080p HDR arrives, a new generation of storytelling tools takes center stage, an...
04/04/2026
Michigan legends bring a new voice to the broadcast as TNT Sports and CBS Sports...
04/04/2026
Faster, cleaner and more intuitive than ever
The control software for Flock Audio's digitally controlled patchbay systems has just been treated to an up...
04/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/04/2026
DHD Introduces AI-Based Audio Noise Reduction to XD3 IP Core
Brie Clayton April 3, 2026
0 Comments
The accompanying image shows the rear panel of the ...
04/04/2026
Macnica Redefines ST 2110 Flexibility with Two Speeds on One Card
Brie Clayton April 3, 2026
0 Comments
New for NAB Show 2026, MEP100 SmartNIC now sup...
04/04/2026
Unified Media Workflows for Story-Centric Production
Brie Clayton April 3, 2026
0 Comments
Framelight X unifies field capture, editing and publishing ...
03/04/2026
Michigan's Fab Five will reunite for an alternate presentation of the Mich...
03/04/2026
Avid will exhibit at NAB Show 2026 (April 18-22, Booth N2226, Las Vegas Convention Center), demonstrating its Content Core platform and new AI-driven workflow c...
03/04/2026
Mark Roberts Motion Control (MRMC) has announced the appointment of Nick Barthee as Chief Operating Officer.
The announcement follows MRMC's transition fro...
03/04/2026
Interra Systems has announced that Elite Media Technologies has selected its BATON file-based QC solution for media workflows. Elite Media Technologies speciali...
03/04/2026
Ateme has announced that Moldtelecom has deployed Ateme technologies across its streaming workflow, covering encoding, delivery, operations, and analytics.
Mol...
03/04/2026
Grass Valley will demonstrate Framelight X, its content management platform, at NAB Show 2026. The platform connects capture, ingest, editing, and publishing in...
03/04/2026
Encompass Digital Media and Techex have announced a cloud-native Master Control ...
SeaChange International Issues Business Update in Response to Global Impact of COVID-19 Download as PDF May 21, 2020 4:45pm EDT 
