SeaChange issues weak fiscal 1Q outlook
SeaChange International Inc. shares sank in after-hours trading Tuesday after the video software company issued a disappointing forecast.
The Acton, Mass.-based company posted net income of $7 million, or 21 cents per share, for its fiscal fourth quarter that ended Jan. 31. That compares with a loss of $4.8 million, or 15 cents per share, for the same quarter of the prior year. On an adjusted basis, the company earned 28 cents per share in the recent quarter.
Revenue rose to $44.6 million from $43.3 million on increases in product revenue, while service revenue fell.
Analysts polled by FactSet expected the company to earn 16 cents per share on revenue of $44.5 million.
CEO Raghu Rau said the gains were driven by sales of new products, increased product licensing revenues and aggressive cost reduction actions. He also said the company is encouraged by demand for its next generation of products and expects revenue in the second half of the year to be significantly higher than in the first half.
SeaChange forecast fiscal first-quarter operating earnings of 1 to 4 cents per share on revenue of $34 million to $36 million. Analysts had forecast earnings of 11 cents per share on revenue of $39.1 million.
For the full year, it forecast operating earnings of 53 to 71 cents per share and revenue of $165 million to $175 million. Analysts had forecast earnings of 55 cents per share on revenue of $173.5 million.
Shares tumbled $1.14, or 10 percent, to $10.27 in after-hours trading.