Investor’s Watch List: SeaChange International, Inc. (NASDAQ:SEAC)

SeaChange International, Inc. (NASDAQ:SEAC) changed -0.74% to recent value of $1.3500. The stock transacted 15,244 shares during most recent day however it has an average volume of 127,170 shares. It spotted trading -61.10% off 52-week high price. On the other end, the stock has been noted 19.48% away from the low price over the last 52-weeks.

SeaChange International, Inc. (SEAC) recently stated first quarter fiscal 2020 revenue of $8.5M and a net loss of $10.8M, or $0.30 per basic share, contrast to first quarter fiscal 2019 revenue of $14.9M and a net loss of $5.5M, or $0.15 per basic share.

Quarterly and Recent Highlights

  • Purchased Xstream A/S, an over the top video and TV cloud platform provider based in Europe, adding over 5M subscribers and additional SaaS revenues.
  • Won five consumers covering multi-year commitments for the Framework video delivery platform amounting to over $15M in total deal value, which is predictable to be reflected in results starting in Q2 FY20.
  • Strengthened the management team with the appointment of Mark Bonney as Executive Chairman in April and Yossi Aloni as Chief Commercial Officer in January.
  • Demonstrated the Company’s new Framework approach to consumers and prospects at the National Association of Broadcasters (NAB) conference in Las Vegas in April.
  • Adopted a Tax Benefits Preservation Plan to protect the Company’s net operating loss carryforwards; the plan has been submitted to shareholders for authorization at the Company’s 2019 Yearly Meeting of Shareholders on July 11, 2019.
  • Ended the quarter with cash and cash equivalents of about $24.3M and no debt reflecting a cash payment of $4.6M for the acquisition of Xstream, as well as several non-recurring operating costs in the quarter.
  • The Board of Directors accepted a share repurchase program of up to $5M of presently outstanding shares on June 6, 2019.

Outlook

Update on the Company’s key metrics for fiscal 2020:

  • Goal: Close 20-25 important deals for multiple product/service offerings on an yearly basis. Progress: Closed five important deals since the starting of the fiscal year.
  • Goal: Raise total yearly revenue in the low to mid double digits percentage range to $70-80M, despite lower year-over-year service revenues. Progress: Despite the impact of importantly cleansing the backlog in FIRST QUARTER, the Company is encouraged by the growth of the Framework deal pipeline and remains confident in the full year revenue target.
  • Goal: Maintain GAAP gross margins in the low 60 percentage range. Progress: Margins produced in the initial Framework deals are consistent with this goal.
  • Goal: Complete the development of three important new product offerings. Progress: Product development efforts are on track to achieve this goal.
  • Goal: Continue to reduce costs by focusing on reducing essential third-party costs and eliminating non-essential costs. Progress: Efforts to reduce third-party costs are ahead of plan and will largely be completed in Q2 with full quarterly impact starting in THIRD QUARTER.
  • Goal: Deliver GAAP operating results between a loss of $0.09 per basic share to income of $0.07 per fully diluted share and non-GAAP operating income between $0.03 to $0.19 per fully diluted share. Progress: Management continues to believe this goal can be met for the full year.
  • Goal: Raise cash by $3-6M to $33-36M, from about $30M at the end of fiscal year 2019. Current outlook: The overall cash goal has not changed but is being altered to reflect the newly-reported $5M Share Repurchase Program. The new goal is a cash balance of $28-31M at year-end.

The Company continues to believe that achieving these goals will establish the foundation for a business model that could result in sustainable double-digit revenue growth and non-GAAP operating income growth of 12-15% in 2 to 3 years. 
These GAAP estimates are subject to a number of variables that are outside of management’s control, including the size of restructuring expenses, which are influenced by the timing of certain non-U.S. restructuring activities and stock price fluctuations.

The company has 23.10% shares outstanding and market value of 49.365M. SEAC switched up 1.08% 20-Days Simple Moving Average, added 1.98% from 50-Days Simple Moving Average and fell -11.09% from 200 Days Simple Moving Average.

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