Delays impact SeaChange revenues

SeaChange has reported second quarter revenues of US$50.1 million (€35.5 million), US$1.5 million down on the same period last year. The company blamed delays involving two large customers for lower revenues.

The company’s software segment saw revenues up 10% to US$34.6 million due to increased shipments of advertising insertion software to North American service providers and increased VOD software revenue from eventIS.

Media services operating revenue reached US$7.8 million, a US$0.7 million year-on-year increase mainly due to higher VOD content aggregation revenues from customers in France and eastern Europe that were partially offset by lower revenues from a customer in Greece.

SeaChange saw losses in its servers and storage segment, which generated US$7.7 million in revenues, which was $5.3 million lower than at the same period last year.  The decrease in revenues was due primarily to lower VOD server shipments to North American and European customers.

“While we were disappointed by unforecasted delays in recognising revenue in the second quarter from the newer products we’re installing for two of our longstanding large customers, our strategy to expand our software portfolio is demonstrably on track and getting stronger, continuing to ensure SeaChange’s long-term resilience, market leadership and a growing cash position despite the uncertain global economy,” said Bill Styslinger, CEO and chairman, SeaChange International.