Shares in SeaChange International were down more than 15% in pre-market trading Wednesday the day after the video software specialist said fourth-quarter results would miss their anticipated target due in part to order delays.
In announcing preliminary results, SeaChange said fourth quarter revenues will be in the range of $34.5 million to $35.5 million, well off prior guidance of $40 million to $45 million. Its revised view for the period now calls for a non-GAAP operating income of 1 cent to 2 cents per fully diluted share, versus prior guidance of 15 cents to 20 cents.
"We are very disappointed that fourth quarter revenues came in below our guidance range," said Raghu Rau, CEO, SeaChange, in a statement. "The primary reasons for this shortfall were delays in receiving anticipated orders from customers in the Americas along with continued delays in receiving some final acceptances. The magnitude of these delays was greater than expected, given our customer concentration and the timing of our sales, wherein many sales occur towards the end of a quarter."