SeaChange International, Inc. is a developer, manufacturer and marketer of digital video systems and services to cable system operators, telecommunications companies and broadcast television companies.
SeaChange (SEAC) expects to report FQ4 (Jan. quarter) revenue of $34.5M-$35.5M and non-GAAP op. income of $0.01-$0.02/share, below prior guidance of $40M-$45M and $0.15-$0.20/share. The consensus is for revenue of $43.5M and EPS of $0.19.
The cable infrastructure hardware/software vendor blames delayed orders from Americas customers and "continued delays in receiving some final acceptances."
SeaChange also says it now expects FY15 (ends Jan. '15) revenue to be flat to down; the consensus is for 9% growth. The company still expects profits to grow thanks to cost cuts and stronger sales of new (higher-margin) products.
In an article embargoed until 10:30AM ET, Helix Investment Research argues the cable/pay-TV equipment maker's next-gen Adrenalin video delivery platform (built to handle multi-screen video transmissions/advertising) will lift growth. The author points out Adrenalin had scored 38 design wins as of March, and that three telco clients have been added since.
SeaChange's (SEAC +4.4%) new Infusion video ad platform is also viewed as a growth driver. Infusion allows customers to jointly manage TV and online ad campaigns, and to target users across both mediums.
The author also observes Helix has $3.70/share in cash/investments and no debt, and is open to returning some of those funds to shareholders.
More on SeaChange International (SEAC): Q3 beats across the board, despite a dip in total sales Y/Y. Net profit rose a solid 42% as the video-gear maker's operating costs decreased and offset the weaker sales numbers. Operating expenses shrank 13% to $20M, on lower R&D, marketing, overhead costs and earn-outs. Gross margin narrowed however, to 49.7% from 56.6%. For FY13, the company ups guidance, now seeing earnings of $0.38 to $0.41 on revenue of $155M to $159M. The Street view is for an EPS of $0.34 on $156M in revenue. Shares +5.7% AH.