SEAC dropping to the $3.60's? Um ok. This stock was trading in the $3.50's BEFORE the huge Q3 turnaround announced last month.
SEAC reported non-GAAP Q3 earnings of .14/share vs. a sizable loss the prior year. Excluding restructuring charges, GAAP earnings would have been .12/share. This software company is very cheap based on those Q3 numbers...and the best part is they're guiding for what sounds like a monster Q4. Which should make for an eye-popping comp. Plus this software company is in one hot sector. Wait til SEAC gets lumped in with NFLX, ROKU, etc...who know how high the momo traders will take this one in 2020. Looking forward to their Needham presentation next week.
What the company does:
About SeaChange International
SeaChange is a leading supplier of Video Delivery Software Solutions. Our solution powers hundreds of cloud and on-premise video delivery platforms, servicing over 50 million subscribers worldwide. SeaChange offers value-based engagement which provides content and service providers with a complete software delivery platform for linear, VOD and TSTV over managed and unmanaged networks. The SeaChange Framework solution includes video back-office, media asset management, targeted advertising management, analytics and the client interface for STBs, Smart-TVs and mobile devices. Our solution is available as a product or managed service deployed on-premises, in the cloud or as a hybrid. For more information, please visit www.seachange.com.
Q3 highlights from the earnings PR last month:
Won eight significant customers all with multi-year commitments for the Framework video delivery platform, amounting to more than $18 million in total deal value, bringing the cumulative value for this fiscal year to date to 15 deals totaling more than $39 million.
Gross margin was 76% in the third quarter of fiscal 2020, compared to 61% in the third quarter of fiscal 2019, as we continue to see an improvement in gross margin related to our Framework video delivery platform.
CEO quote also from the Q3 earnings PR:
"The transformation of SeaChange is well underway and taking hold: we are seeing further evidence that our strategic growth initiatives are winning in the marketplace, positioning SeaChange for clear market leadership and long-term profitable growth. The Framework offering and our unique value-based engagement have been well received. Our new wins in the quarter provide additional confirmation that we have a superior product, which enables our customers in turn to offer an exceptional viewer experience to their customers."
AI
