SeaChange International loses $8.3M in Q2
PHOTO/COURTESY
The SeaChange International Booth at the Cable Show 2012 event in Boston. The company is shifting its focus away from cable toward video streaming.
Acton video support firm SeaChange International took a big loss in the second quarter with revenues of $11.9 million and a net loss of $8.3 million.
The company ended the quarter with $24.4 million in cash compared to $43.7 to start the year.
Year over year, the company reported losses in both revenue and narrowing its profitability gap, as revenues declined by 30 percent.
For the year, the company is now losing $14.6 million, compared to a $6.9-million loss at this point last year.
To help control that loss, the company is beginning a cost reduction program to save $6 million on an annualized basis, CFO Peter Faubert said in an earnings report Wednesday.
CEO Ed Terino said the company still believes in its strategy of pivoting to end-to-end solutions sold on a software-as-a-service business model to video service providers, wireless carriers and ISP’s.
As a result of the company’s pivot, closing transactions is taking longer to achieve, he said.
Shares of the company’s stock dropped about 44 percent last month after the company warned of its lackluster earnings.
Since then, it has rebounded by almost 7 percent.
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