SeaChange International Inc (NASDAQ:SEAC) reported a loss in its third quarter, but said it has set the course for profitability by fiscal 2020 as it nears completion of its cost-reduction program.
The video software company reported a loss of $0.11 per share compared with breaking even in the year-ago third quarter, wider than the loss of $0.04 per share Wall Street was expecting.
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Quarterly revenue totaled $18.6 million, ahead of analyst estimates of $17.57 million but a 20% drop compared with revenue of $23.4 million a year ago.
Chief Financial Officer Peter Faubert highlighted the silver lining, noting that the company has completed most of its cost reduction program, designed to save $6 million annually.
“We are focused on the goal of returning SeaChange to operating profitability and positive cash flow in the first quarter of fiscal 2020,” said Faubert.
Looking forward
SeaChange said it expects fourth-quarter revenue in the range of $16 million to $20 million.
The company sees full-year revenue in the range of $61 million to $65 million, lower than its prior guidance of $70 million to $75 million.
SeaChange offers multi-screen video services on a cloud-based platform to video providers and broadcasters.
Shares of the Massachusetts-based company slipped more than 22% to $1.38 in Tuesday Morning trading.
Contact Lenore Fedow at lenore@proactiveinvestors.com
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