SeaChange International took its recurring software revenue above 60% in the fourth quarter. Total revenues of $34.9 million (€25.43m) in the segment were 9% higher than in last year’s quarter on the back of increased software subscription revenues from Comcast and Cox and the acquisition of the Dutch business eventIS. The revenues may have been higher still were it not for the effect of the lower advertising market on capital spending.
“We are on target to accomplish our goals for fiscal year 2011. We accomplished a significant milestone in fiscal 2010 by growing our recurring software revenue to over 60%. This accomplishment allows us to now focus on an increased bottom line which will create shareholder value in fiscal 2011,” said Bill Styslinger, SeaChange CEO & chairman.
Total revenues for the quarter dipped by $1m to $53m. Total revenues for fiscal 2010, ended January 31, 2010, were $201.7m, $0.1 million lower than for fiscal year 2009. The company is predicting 2011 revenues of between $225 and $235 million. It is expecting a stronger second half based on stronger VOD software deployments. A number of staff are currently facing redundancy, which will come at a cost to SeaChange of between $1.5 to $1.8 million.
President and COO Ed Dunbar is leaving the company with Yvette Kanouff being promoted to President with responsibility for business development, overall product strategy, product management, communications and investor relations. Former EventIS CEO has been promoted to President of SeaChange Software, where he will be responsible for the Software business including growth, profit, engineering, product roadmaps and direction.
