Trending Stocks -SeaChange International (NASDAQ:SEAC)
On Monday, Shares of SeaChange International (NASDAQ:SEAC), gained 2.08% to $2.45. The 52-week range of the share price is from $2.05 – $4.35. The beta value for this stock stands at 0.61 points, while its earnings per share (EPS) was $-1.92. The company has total market capitalization of $85.54M and a total of 35.21M outstanding shares.
SeaChange International, Inc. (SEAC) today stated fourth quarter fiscal 2017 revenue of $23.80M and U.S. GAAP loss from operations of $25.0M, or $0.71 per basic share, contrast to fourth quarter fiscal 2016 revenue of $27.20M and U.S. GAAP loss from operations of $22.10M, or $0.66 per basic share.
The Company’s U.S. GAAP fourth quarter fiscal 2017 results included non-GAAP charges of $22.80M, which consisted mainly of a loss on impairment of long-lived assets of $24.20M, severance and other restructuring costs of $1.10M, stock-based compensation of $0.80M, amortization of intangible assets from prior acquisitions of $0.80M, and a reduction of $4.10M in the formerly recorded provision for a loss contract, while the fourth quarter fiscal 2016 results included $22.30M of non-GAAP charges. Non-GAAP loss from operations for the fourth quarter of fiscal 2017 was $2.10M, or $0.06 per basic share, contrast to the fourth quarter of fiscal 2016 non-GAAP income from operations of $0.10M, or break-even per share.
For the full fiscal year ended January 31, 2017, the Company posted revenue of $83.80M and a U.S. GAAP loss from operations of $54.60M, or $1.56 per basic share contrast to revenue of $107.0M and U.S. GAAP loss from operations of $48.20M, or $1.44 per basic share in the same prior period. The Company posted a non-GAAP loss from operations for fiscal 2017 of $20.80M, or $0.60 per basic share contrast to a non-GAAP loss from operations of $7.50M, or $0.23 per basic share for the same period of the prior fiscal year.
Ed Terino, Chief Executive Officer, SeaChange, said, “Fiscal year 2017 was a transitional year for SeaChange, capped off by strong fourth quarter performance. We made noteworthy progress with our turnaround efforts and our programs to drive costs down and return to profitability and positive cash flow in fiscal 2018. Our product revenue grew to a large extent, driven by the deployment of a virtualized Adrenalin video platform for our leading customer and we achieved a noteworthy milestone when a large European customer, the Quickline Group, deployed a complete SeaChange end-to-end multiscreen solution, counting Adrenalin and our Nucleus RDK-based video home gateway. We also delivered Quickline TV’s OTT device apps for Android and iOS. In addition, we secured two Axiom to Adrenalin migrations, and subsequent to quarter end, we declared another North American longtime customer, Midco, is upgrading from Axiom to our next-generation Adrenalin platform. As we enter fiscal 2018, we’re excited by the opportunities we see to achieve revenue growth, profitability, and positive cash generation.”
Peter Faubert, Chief Financial Officer, SeaChange, said, “The fourth quarter was a solid end to the year for SeaChange, with revenue and non-GAAP EPS at the high end of our guidance range. Product revenue raised 106% consecutively and 38% year over year. We made noteworthy progress on our cost reduction program. Based on actions we took in fiscal 2017 and to date in fiscal 2018, we have reduced operating costs by about $33.0M on an annualized basis. We have reduced headcount below 400 people presently from 660 at the end of the prior fiscal year. Together with our other cost-saving actions, we believe this will enable us to achieve ongoing operating expenses of $12.0M per quarter, apart from non-GAAP expenses consistent with the accompanying reconciliation and other non-recurring items that we may experience. Moreover, we delivered on our strategy to be cash flow positive in the quarter and to further reduce our unbilled receivables. We expect to complete our restructuring in the first half of the year and remain focused on prudently managing our operating expenses to return the Company to profitability in the second half of fiscal 2018.”
Faubert added, “Our customers are increasingly looking to implement end-to-end solutions using cloud based deployment models on a subscription basis. As a result, we believe that our revenue mix will transition from perpetual license to monthly recurring revenue or SaaS. This will have an impact on our top-line performance, but over the longer term, will improve our visibility and the predictability of our revenue base.”
SeaChange ended the fourth quarter of fiscal 2017 with cash, cash equivalents, restricted cash and marketable securities of about $39 million, and no debt outstanding.
Outlook:
SeaChange anticipates first quarter fiscal 2018 revenue to be in the range of $16.0M to $18.0M, U.S. GAAP loss from operations to be in the range of $0.19 to $0.23 per basic share, and non-GAAP loss from operations to be in the range of $0.11 to $0.15 per basic share. For full fiscal 2018, SeaChange anticipates revenue to be in the range of $80.0M to $90.0M, U.S. GAAP loss from operations to be in the range of $0.25 to $0.37 per basic share, and non-GAAP operating loss to be in the range of $0.10 per basic share to non-GAAP operating income of $0.02 per diluted share.
Technical Analysis:
The average true range of the stock is recorded at 0.11 and the relative strength index of the stock stands 53.46. The stock price is going above to its 52-week low with +19.51% and down from its 52-week high with -43.68%.
The stock has shown weekly performance of -2.00% and monthly performance stands at 0.82%. The stock price is trading downbeat from its 200 days moving average with -10.55% and up from 50 days moving average with 0.60%.
Analyst recommendation for this stock stands at 2.00.