ACTON, Mass., June 5, 2014 (GLOBE NEWSWIRE) -- SeaChange International, Inc. (Nasdaq:SEAC), a leading global multi-screen video software innovator, today reported first quarter fiscal 2015 revenue of $24.3 million and a non-GAAP operating loss of $7.2 million, or $0.22 per basic share, from continuing operations. In comparison, first quarter fiscal 2014 revenue was $35.6 million and non-GAAP operating income was $1.2 million, or $0.04 per fully diluted share, from continuing operations. The Company posted U.S. GAAP operating loss of $10.1 million, or $0.31 per basic share, for the first quarter of fiscal 2015, compared to a U.S. GAAP operating loss for the first quarter of fiscal 2014 of $1.8 million, or $0.05 per basic share. The Company's U.S. GAAP first quarter fiscal 2015 results include charges of $3.0 million that are excluded from its non-GAAP results, which consisted primarily of stock-based compensation and amortization of intangible assets from prior acquisitions.
"In spite of the anticipated short-term challenges, which include significant declines in legacy product revenues and continuing delays in receiving customer acceptances for new products, as well as push outs of expected orders, SeaChange is continuing to invest in R&D to further enhance our next generation software products to support new and existing customer requirements," said Raghu Rau, CEO, SeaChange. "While these investments impact short-term profitability, we believe they will create long-term value based on continuing customer traction of our next generation products. During the first quarter, we received acceptance of our Adrenalin multi-screen television platform from two service providers that was previously delayed. Since the end of the first quarter, we have also begun to receive orders from three large U.S. service providers that were expected earlier. We also have achieved a new design win with an existing customer for Adrenalin and our Nucleus video gateway software in an additional European country. Based on expected rollouts of our next generation products and customer upgrades, we remain confident that our revenue and profitability will improve sequentially in each of the next three quarters. We also expect to grow second half fiscal 2015 revenues and profitability year over year."
Anthony Dias, CFO, SeaChange, said, "As we've stated previously, our first quarter is typically our lowest period seasonally and this quarter's results were compounded by significant legacy declines and delays in customer acceptances of new products. We expect our second quarter fiscal 2015 revenues to be in the range of $26 million to $30 million and non-GAAP operating loss between $0.10 and $0.20 per basic share. Driven by orders for our new products and lowered legacy revenue declines in the second half of this year, we expect revenues for full fiscal 2015 to be in the range of $125 million to $135 million and non-GAAP operating results to be in the range of a loss of $0.12 per share to an operating income of $0.10 per share."
SeaChange ended the first quarter of fiscal 2015 with cash, cash equivalents and marketable securities of $116.6 million and no debt outstanding, compared to $128.1 million at the close of the fourth quarter of fiscal 2014. The Company repurchased $3.5 million of its outstanding shares under its $25 million stock buyback authorization during the first quarter. On May 31, 2014, SeaChange's Board of Directors amended the plan, increasing the buyback authorization from $25 million to $40 million and extending the termination date of the plan from January 31, 2015 to April 30, 2015.
The Company will host a conference call to discuss its first quarter fiscal 2015 results at 5:00 p.m. ET today, Thursday, June 5, 2014. The call may be accessed at 877-407-8037 (U.S.) and 201-689-8037 (international) and via live webcast at www.schange.com/IR. For those unable to listen to the live conference call, a replay will be available through June 19, 2014 and may be accessed by dialing 877-660-6853 (U.S.) or 201-612-7415 (international). Callers will be prompted for replay conference ID number 1358-2281. An archived version of the webcast will also be available on the investor relations section of the Company's website at www.schange.com/IR.
Ranked among the top 250 software companies in the world, SeaChange International, Inc. (Nasdaq:SEAC) enables transformative multi-screen video services through an open, cloud-based, intelligent software platform trusted by cable, telco and mobile operators globally. Personalized and fully monetized video experiences anytime on any device, in the home and everywhere, are the product of the Company's superior multi-screen, advertising and video gateway software products.
Any statements contained in this press release that do not describe historical facts, including without limitation statements regarding future financial performance, next generation products and customer upgrades, and the repurchase of the Company's shares, are neither promises nor guarantees and may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements contained herein are based on current assumptions and expectations, but are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. Factors that could cause actual future results to differ materially from current expectations include the following: the continued spending by the Company's customers on video systems and services; the continued development of the multi-screen video market; the Company's ability to successfully introduce new products or enhancements to existing products and the rate of decline in revenue attributable to our legacy products; worldwide economic cycles; measures taken to address the variability in the market for our products and services; uncertainties introduced by our prior evaluation of strategic alternatives; the Company's transition to being a company that primarily provides software solutions; the loss of one of the Company's large customers; the cancellation or deferral of purchases of the Company's products; the length of the Company's sales cycles; the timing of revenue recognition of new products due to customer integration and acceptance requirements; any decline in demand or average selling prices for our products; the Company's ability to manage its growth; the risks associated with international operations; the ability of the Company and its intermediaries to comply with the Foreign Corrupt Practices Act; compliance with conflict minerals regulations; foreign currency fluctuation; the Company's ability to protect its intellectual property rights and the expenses that may be incurred by the Company to protect its intellectual property rights; an unfavorable result of current or future litigation; content providers limiting the scope of content licensed for use in the video-on-demand market or other limitations in materials we use to provide our products and services; the risks associated with purchasing material components from sole suppliers and using a limited number of third-party manufacturers; the Company's ability to obtain necessary licenses or distribution rights for third-party technology; the Company's ability to compete in its marketplace; the Company's ability to respond to changing technologies; the impact of acquisitions, divestitures or investments made by the Company; the impact of changes in the market on the value of our investments; changes in the regulatory environment; the Company's ability to hire and retain highly skilled employees; the ability of the Company to manage and oversee the outsourcing of engineering work; the security measures of the Company are breached and customer data or our data is obtained unlawfully; service interruptions or delays from our third-party data center hosting facilities; and the effectiveness of the Company's disclosure controls and procedures and internal controls over financial reporting.
Further information on factors that could cause actual results to differ from those anticipated is detailed in various publicly available documents made by the Company from time to time with the Securities and Exchange Commission, including but not limited to, those appearing under the caption "Certain Risk Factors" in the Company's Annual Report on Form 10-K filed on April 4, 2014. Any forward-looking statements should be considered in light of those factors. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak as of the date they are made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in Company expectations or events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results may differ from those set forth in the forward-looking statements.
We define non-GAAP (loss) income from operations as U.S. Generally Accepted Accounting Principles ("U.S. GAAP") operating loss plus stock-based compensation expenses, amortization of intangible assets, earn-outs and change in fair value of earn-outs, professional fees associated with acquisitions, divestitures, litigation and strategic alternatives and severance and other restructuring costs. We discuss non-GAAP (loss) income from operations in our quarterly earnings releases and certain other communications as we believe non-GAAP (loss) income from operations is an important measure that is not calculated according to U.S. GAAP. We use non-GAAP (loss) income from operations in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors, determining a component of bonus compensation for executive officers and other key employees based on operating performance and evaluating short-term and long-term operating trends in our operations. We believe that non-GAAP (loss) income from operations assists in providing an enhanced understanding of our underlying operational measures to manage the business, to evaluate performance compared to prior periods and the marketplace, and to establish operational goals. We believe that these non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making.
Non-GAAP (loss) income from operations is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with U.S. GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the non-GAAP (loss) income from operations financial adjustments described above, and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring.
Severance and Other Restructuring . We incur charges due to the restructuring of our business, including severance charges and facility reductions resulting from our restructuring and streamlining efforts and any changes due to revised estimates, which we generally would not have otherwise incurred in the periods presented as part of our continuing operations.