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SeaChange’s software business contributes to revenue increase

VOD technology company SeaChange has reported third quarter revenues of US$53.4 million (€40 million), a 9% year-on-year increase.

The company’s software segment contributed the majority of revenues at US$37.6 million, up US$4.4 million, which it attributed to a significant home gateway licensing transaction with a large domestic service provider, higher VOD software revenues from eventIS and increased advertising product revenues from US-based customers.

SeaChange’s servers and storage segment saw revenues increase by US$100,000 to US$7.9 million. Revenues from its media services business were US$200,000 lower than the corresponding period a year earlier to US$7.9 million. The decrease in revenues related to lower revenues from customers in the UK and Greece that were partially offset by higher revenues from customers in France, eastern Europe and Latin America.

“SeaChange has made good progress in fiscal 2012 toward controlling costs and starting its next phase of growth through emergent multi-screen video opportunities globally with its legacy VOD customers and several new ones,” said Raghu Rau, CEO, SeaChange.  “However, as the company is committed to a software strategy, it will work to increase its overall margins to ensure its long-term ability to address the volume of opportunity and innovate even further for our video service provider customers.  The third quarter results underscore our need to focus sharply on improving financial performance by reducing overall costs and reallocating resources to deliver our new products to drive increased revenues.  During the coming months I’ll report in detail on our organisational initiatives and progress.”