SeaChange Posts Strong 2009 Results

VOD vendor books record revenues

Video-on-demand (VOD) server and software vendor SeaChange International
reported solid results for its fiscal 2009 fourth quarter and 2009 fiscal year,
which ended January 31, 2009.

 

The Acton, Mass.-based company recorded Q4 revenues of $54.0 million,
$6.2 million or 13% higher than total revenues of $47.8 million for the fourth
quarter of fiscal 2008.  Net income for
the fourth quarter was $4.8 million or $0.15 per diluted share. That was lower
than $12.0 million or $0.41 per diluted share recorded for the previous year's
fourth quarter, but that is largely due to a $10.0 million gain SeaChange
recorded by selling its equity interest in FilmFlex Movies Limited. SeaChange
said net income for the fourth quarter included the utilization of income tax
credits resulting in a $1.5 million tax benefit.

 

SeaChange's Q4 revenues got a big boost from the company's Servers and
Storage segment, which generated revenues of $17.7 million that were $5.8
million or 49% higher than revenues of $11.9 million for the fourth quarter of
fiscal 2008.  SeaChange says the revenue
increase was primarily due to substantially higher shipments of VOD flash memory
servers to its North American-based cable television customers, as well as
increased maintenance revenue due to a higher installed base of VOD
servers.

 

SeaChange's total revenues for fiscal 2009 were a record $201.8 million,
some $21.9 million or 12% higher than total revenues of $179.9 million for the
prior fiscal year, while net income for fiscal 2009 was $10.0 million or $0.32
per share, compared with net income of $2.9 million or $0.10 per share for
fiscal 2008.

 

SeaChange forecasts revenues for the first six months of fiscal 2010 to
be comparable to fiscal 2009, and president and CEO Bill Styslinger said he was
"cautiously optimistic" that revenues will grow in the back half of fiscal 2010,
allowing for year-over-year revenue growth. The company, which has no debt and
ended fiscal 2009 with cash, cash equivalents and marketable securities of $85.8
million, said it plans to buy back up to $20 million of its stock.

 

"Despite the
challenging economic times this country is facing, we believe SeaChange is
solidly positioned to exploit the continuing movement to video-on-demand
television that has been the cornerstone of our business," said Styslinger in a
statement.  "We continue to foster strong
and longstanding relationships with our key North American customers and we are
complementing this approach with recent telecommunications customer wins in
Europe, Asia and Latin America."