SEACHANGE INTERNATIONAL, INC. Preliminary Fiscal Third Quarter 2024 Financial Highlights
- Total revenue of approximately
$6.6 million - GAAP net loss of approximately
$0.1 million - Adjusted EBITDA of approximately
$0.2 million - Approximately
$16.0 million in cash and cash equivalents and marketable securities combined at quarter end
Preliminary Fiscal Nine Month 2024 Financial Highlights
- Total revenue of approximately
$20.7 million - GAAP net loss of approximately
$2.1 million - Adjusted EBITDA loss of approximately
$0.3 million
Adjusted EBITDA Reconciliation (preliminary and unaudited)
To supplement the Company’s unaudited consolidated financial statements, which are prepared and presented in accordance with
Non-GAAP loss from operations and adjusted EBITDA are non-GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the financial adjustments described above in arriving at non-GAAP loss from operations and adjusted EBITDA and investors should not infer from our presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring. The following table includes the reconciliations of our GAAP loss from operations, the most directly comparable GAAP financial measure, to our non-GAAP loss from operations and adjusted EBITDA for the three and nine months ended
| Estimated Reconciliation of GAAP to Non-GAAP | ||||||||
| (Unaudited) | ||||||||
| (Amounts in thousands) | ||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||
| GAAP net loss | $ | (105 | ) | $ | (2,093 | ) | ||
| Other (income) expense, net | (284 | ) | (434 | ) | ||||
| Income tax provision | 26 | 109 | ||||||
| GAAP loss from operations | $ | (363 | ) | $ | (2,418 | ) | ||
| Stock-based compensation | 294 | 940 | ||||||
| Severance and restructuring costs | 277 | 327 | ||||||
| Transaction costs | (84 | ) | 569 | |||||
| Non-GAAP loss from operations | $ | 124 | $ | (582 | ) | |||
| Depreciation | 117 | 246 | ||||||
| Adjusted EBITDA | $ | 241 | $ | (336 | ) | |||
Management Commentary
The Company continues to execute its plan to generate profitable growth of its recurring revenue streams. In parallel, the Company continues its process to identify potential strategic partnerships to increase stockholder value through M&A transactions, including evaluating preliminary indications of interests from third parties. There can be no assurance that such discussions will result in definitive documentation or a successful closing of a transaction. While the Company is disclosing its quarterly performance and its M&A process in connection with its new stock repurchase program described below, there can be no assurance that it will continue to do so in the future and may discontinue such disclosures in its sole discretion.
Stock Repurchase Program
On
About
Forward-Looking Statements
Certain statements in this press release and any oral statements made regarding the contents of this press release may constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, as amended to date. Forward-looking statements can be identified by words such as "may," "might," "will," "should," "could," "expects," "plans," "anticipates," "believes," "seeks," "intends," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. Examples of forward-looking statements include, among others, statements we make regarding the Company’s plan to generate profitable growth of its recurring revenue streams, process to identify potential strategic partnerships to increase stockholder value through M&A transactions, the stock repurchase program is advisable and in the best interests of the Company and its stockholders and represents a good investment of its excess cash, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of the Company and are subject to a number of known and unknown risks and significant business, economic and competitive uncertainties that could cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. Risks that could cause actual results to differ include, but are not limited to: weakened global economic conditions, including inflation; a reduction in spending by customers on video solutions and services would adversely affect our business, financial condition and operating results; the increase in labor, service and supply costs, including as a result of inflationary pressures; the manner in which the multiscreen video and over-the-top markets develop; our efforts to become a company that primarily provides software solutions; the inability to successfully compete in our marketplace; the failure to respond to rapidly changing technologies related to multiscreen video; the variability in the market for our products and services; the loss of or reduction in demand, or the return of product, by one of the Company's large customers or the failure of revenue acceptance criteria to have been satisfied in a given fiscal quarter; the cancellation or deferral of purchases of our products or final customer acceptance; a decline in demand or average selling prices for our products and services; our entry into fixed-price contracts, which could subject us to losses if we have cost overruns; warranty claims on our products and any significant warranty expense in excess of estimates; the possibility that our software products contain serious errors or defects; turnover in our senior management; our ability to retain key personnel and hire additional personnel; the failure to achieve our financial forecasts due to inaccurate sales forecasts or other factors, including due to expenses we may incur in fulfilling customer arrangements; the impact of our cost-savings and restructuring programs; the Company's ability to manage its growth; the risks associated with international operations; risks related to public health pandemics, including the COVID-19 pandemic; the impact of the ongoing conflict in
SeaChange Investor Contact:
Chief Financial Officer
T: +1 978-897-0100
E: mark.szynkowski@schange.com
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