Management Commentary
“The effects ofCOVID-19 across the global economy, including the TV and video technology industry specifically, had a pronounced impact on our ability to finalize the closure of new engagements during the first quarter, as customers are focused on their internal operations and supporting work-from-home enablement tasks,” said CEO Yossi Aloni. “Recognizing the ongoing uncertainty from the current crisis and its related effects on the commercial activity, we have enacted several precautionary measures to further ensure our business remains financially secure and our long-term viability remains intact. In late April, we implemented a new plan to reduce our operating costs and further optimize our organization. We will continue pursuing the necessary measures to ensure SeaChange emerges from this situation in a strong financial and operational position.”
About SeaChange International, Inc.
SeaChange International (NASDAQ: SEAC) powers hundreds of cloud andon-premises platforms with live TV and video on demand (VOD) for more than 50 million subscribers worldwide. SeaChange’send-to-end solution, the Framework, enables operators and content owners to cost-effectively launch adirect-to-consumer video service. This includes back-office, media asset management, ad management, analytics and a client application forset-top boxes (STB),Smart-TVs and mobile devices. Framework is available as a product,Software-as-a-Service (SaaS) or managed service, and can be deployedon-premises, in the cloud or as a hybrid. For more information, please visit www.seachange.com.
Safe Harbor Provision
Certain statements in 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 our ability to grow our revenue and gross margins; actual annualized cost savings to be realized as a result of our recent cost-saving measures; the timing and outcome of potential and current customers’ decision-making regarding future engagements with the Company in light of the effects of theCOVID-19 pandemic; the future predictability of demand for the Framework; the Framework’s ability to reduce our current and potential customers’ operating expenses and monetize their growing unsold advertising capacity; our expectations regarding total revenue for the fiscal first quarter ended April 30, 2020 and the fiscal year ended January 31, 2021; our ability to provide detailed fiscal 2021 guidance in the future; the overall duration and effect of theCOVID-19 pandemic on our business and that of our customers and the video delivery technology industry as a whole; 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: the impact ofCOVID-19 on our business and the economies in which we operate; the continued spending by the Company’s customers on video solutions and services and expenses we may incur in fulfilling customer arrangements; the manner in which the multiscreen video and OTT markets develop; the Company’s ability to compete in the software marketplace; 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 in a
