businesswire.com
BW1017 AUG 29,2000 14:02 PACIFIC 17:02 EASTERN
( BW)(MA-SEACHANGE)(SEAC) SeaChange International Announces Record Second Quarter 2001 Results
Business/Technology Editors
MAYNARD, Mass.--(BUSINESS WIRE)--Aug. 29, 2000--
Over 600 Video Servers Shipped This Quarter Record Revenues in ITV and Broadcast Server Markets
SeaChange International, Inc. (Nasdaq: SEAC) today announced strong financial results for its second quarter ended July 31, 2000. The Company reported record quarterly revenues of $25.6 million for the three month period ended July 31, 2000, up 18% compared to the three month period ended June 30, 1999, and 16% over the previous reported quarter ended March 31, 2000. Net income for the three month period ended July 31, 2000 was $512,000, or $0.02 per share. This compares to net income of $400,000, or $0.02 per share, in the three month period ended June 30, 1999.
For the six months ended July 31, 2000 revenues were $47.9 million, approximately 13% higher than the six month period ended June 30, 1999. Net income for the six months ended July 31, 2000 was $861,000, or $0.04 per share, as compared with $368,000, or $0.02 per share, for the six months ended June 30, 1999.
"SeaChange shipped over 600 digital video servers this quarter, which is a Company record," said Bill Styslinger, president and CEO, SeaChange International. "This quarter, SeaChange also set a new record for broadband and broadcast system revenue. Our Broadband revenue included record revenues for interactive television systems, of $4.4 million, while our Broadcast server systems' revenues reached $6 million, our largest quarter ever. Combined revenues from these new video server markets exceeded that of advertising systems, positive testimony to our momentum in these video server markets."
Styslinger continued, "When you think about the size of this market and the advances in digital technology that are occurring in both broadband and broadcast, you get a feel for the tremendous potential for a company like SeaChange that is positioned to meet the needs of these converging industries. Bear in mind that while we remain profitable, we continue to invest almost 20% in technology development of next generation products for ITV, Broadcast and Advertising systems.
"Our vision is that all of our products interrelate and are leveraged off each other. SeaChange is the only company that has a leadership position in broadcast - the origination point of most programming, advertising - how media is paid for, and ITV - the future of personal television. Exploiting the strengths of each segment is fueling the momentum we feel today," said Styslinger.
Overall, SeaChange gained a number of new television customers and deployed additional servers to existing customers, thereby generating 20% growth in systems revenue from the previous reported quarter. Service revenues also increased to record levels, with an important contribution from SeaChange's Digital Video Arts subsidiary, which is focused on interactive applications software development for SeaChange and a number of others in the industry.
Looking forward to the second half of the year, the Company expects its next quarter's revenues to be comparable with this quarter, operating expenses to be higher due to higher legal and engineering expenses, but overall remaining profitable. The Company still sees a significant revenue upside in the fourth quarter and all of next year. The Company will discuss its financial results and business outlook in more detail today during its webcast conference call at 5:00 pm EDT at www.seachangeinternational.com.
SeaChange International, Inc. is the world leader in digital video systems, spanning broadcast and broadband. The Company creates powerful server and software systems that manage, store and distribute professional quality digital video. SeaChange's innovative products are based on a scalable, distributed software architecture and standard technology components to continually deliver exponential improvements in digital video cost-performance. As a result, SeaChange enables broadband, broadcast, satellite and new media companies to streamline operations and reduce costs, allowing for expanded services, new applications and increased revenues. SeaChange is headquartered in Maynard, Massachusetts and has product development, support and sales offices throughout the world. Visit www.seachangeinternational.com.
Any statements contained in this press release that do not describe historical facts, including without limitation statements concerning expected revenues, earnings, product introductions and general market conditions, 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 expectations, but are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. The factors that could cause actual future results to differ materially from current expectations include the following: the Company's ability to integrate the operations of acquired subsidiaries; fluctuations in demand for the Company's products and services; the Company's ability to manage its growth; the Company's ability to develop, market and introduce new and enhanced products and services on a timely basis; the rapid technological change which characterizes the Company's markets; the Company's significant concentration of customers; the Company's dependence on certain sole source suppliers and third-party manufacturers; the risks associated with international sales as the Company expands its markets; and the ability of the Company to compete successfully in the future. 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 dated March 30, 2000. Any forward-looking statements should be considered in light of those factors.
SeaChange Spot System, GuestServe Network and MediaCluster are trademarks of SeaChange International, Inc.
See the release for the balance sheet |
