SEAC - Earnings call transcript Q3 2018 | SeaChange International, Inc.

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Operator

Greetings, and welcome to the SeaChange International’s Third Quarter 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I’d now like to turn the conference over to your host, Mary Conway, Investor Relations.

Mary Conway

Omar. you, Thank and everyone, for us. joining Good thank afternoon, you third fiscal after XXXX SeaChange market released October of the for today results ended quarter XX, closed. the XXXX,

the the it If Financial you schange.com/ir. Officer. Relations Faubert, our being Chief With Investor call is of copy Executive like today's you at webcast of This website. on be Ed would our website, call can the archived on of and Chief are access me IR Officer; section a Peter on release, section will Terino, and

actual are Before XX, Any Ed XX-Q, that SEC to in expectations. XX-K, most from which these was remind including include filed Report and information light in Annual was that a that April results are which discuss you These cause factors. should risks our subject filed statements, are to recent which today to of begins, our I'd of XXXX. differ forward-looking expectations like our we're on XX, forward-looking uncertainties September number about XXXX statement Form materially on be current to based considered Form on outlined risks and may filings, on may

non-GAAP the financial or contains as defined measures, by presentation this Additionally, SEC. certain adjusted

turn measures call We to remarks. in to directly the that, over have the with opening to tables to for press of provided the a comparable reconciliation like these I'd attached most Ed the GAAP measures release. And

Ed Terino

thank afternoon, you call and joining Good Mary. everyone you, Thank for today. SeaChange's

on strategic we product for some In to growth. lastly, ways direction XXXX. other partnerships pipeline, our will the efforts key improve progress are will in go-to-market in our product quarter, perspective quarter, some with company positioning share and on approach, opportunities performance revenue insights what wins me the our status our Let of fiscal a on provide start of update including along in our outlining roadmap cover thoughts revenue the today. will I recent regarding I I by an strong from sales the

start our results. strong me Let with QX

this saw year. afternoon, on you As beating fiscal issued that pleased very well the we our delivered us our results bottom guidance setting are SeaChange we out finish and to line top release in the handily and up press excellent

Importantly, we we which this end had this year. non-GAAP by operating profitability attained also quarter, of targeted fiscal the

cloud-based video So we This video in Liberty of One wider drove entails the of expansion XXXX Liberty to key of as our an Global Global, Office. of a After massive enabling ahead evaluation, cloud, customers the scale. vendor comprehensive again, SeaChange relationship our afternoon. called Liberty with are as schedule. a for customer revenues What Global platform was Back any largest announced selected mobile access strategic next-generation device QX variety this a on a via transitioning subsidiaries’ we fiscal its platforms capabilities to while

to would While over this LG's expansion to years, we revenues several focused properties which continue million. it the years. this LG that we at this over Initially, SeaChange expect license to incremental anticipate of next platform EMEA Office the additional quarter least the represents was transition expect and two also Latin effort launched One next business Back on We $XX revenues we to lead of SeaChange. EMEA fiscal affiliates, for opportunity LG's to America

customers delivery continued well to video their revenues relationship several to as this existing with to success strong their expand platforms were Our by IPTV adding as to mobile Global the to more Included migrations. subscribers in Axiom licenses Adrenalin sales selling validates devices QX customer. capability Liberty for in

backlog. in QX QX We the ending our that is also deal a a in booked cable large X with in operator included Tier Americas

of $XX the ended of compared at to end the in fiscal backlog million $XX quarter the result third our million. wins, XXXX a a backlog As these range we of with QX

are his it other of did flow cash than provide end to quarter holds more QX through at IP from growth solutions with pipeline color improved the adrenaline metrics monetization Peter today box performance. the our content opportunities in of utilizing Leading mobile upgrades, providers legacy fiscal NitroX. end-to-end revenue set-top it operating APAC gross media will Latin Shifting All globe, to XXXX. in more digital expenses, margins, our positive linear to comments. IP in America OTT the from and nontraditional in our operating pipeline, for upgrades, customers, opportunities existing management expansions VOD and and carriers other opportunities around particularly partners

the Global In addition, of in fiscal Office as One XXXX. I mentioned, project to expand Liberty quarter Back the fourth we expect

basis. must for QX device of have as global is proliferation of connected the from implications pipeline our how in the fundamentally to fiscal go landscape. As services to What's we as services OTT of direction our as is SeaChange has expansion customers our XXXX video approach deliver views the to direct-to-consumer our at we to times the these be of dictating Near entering our roadmap driving market. the which to our the revenue clear the four well well and three a between of on and This choice result, fourth a to altered guidance, enable ubiquitous quarter growth cloud explosive must stands shift market of as product pipeline of profound we patterns. the XXXX successful, of deliver TV customers fiscal midpoint consumption video Internet access, the and devices

pocket the spoke we continued pipeline year. Asia This this initiated and with expansion the of especially As mobile earlier some in we in Pacific. our reflects seeing the impact operators about a result, Middle and East new are programs of

needs. a about the our to for our effectively competitor's deliverables, movement significant subscription from and opportunities but our concerned pricing competitor's their East a In provides strong serve move both video being continue are to are interest pricing. see and ability customers for to several delivery our -- competitor's who are many including cloud-based opportunities perpetual seeking opportunity pipeline platforms, Middle subscription-based pipeline a pace in our abilities more of license in our SeaChange. video We replacing to LG, model, with the are expansion endorsement to customers others offered on Because of

this challenges short-term growth, with revenue more us generating in recurring visible provide the expect and we predictable While more to and it revenue growth. thus run, some revenue in long creates

let me XXXX our fiscal to Now shift product roadmap.

is of deliverables. As software improving we are to agile Warsaw, you engineering expanded and our engineering making methodologies. organization operation and our the to substantial The told Poland last progress there quarter, global software the and quality we capacity we empowered implement in predictability transition in ongoing development lead

roadmap Adrenaline that Linear updated of will IP capabilities we of terms as dates, the month. enable VOD IP delivery better an In and product to as TV and well expect DVR delivery, this network release version TimeShift

our of new We American content content expect management XXXX. the customer a January, by followed in South initial release for of system to release the Spring a in management's version general

release the Finally, operators revenues next replacing with their version NitroX of cost capital boxes, these to we early providing utilize a to set-top to without them on NitroX plan year new boxes. additional of requiring enable legacy set-top

and more better partner's sense to Lastly, channel to I also expanded key now growth want year use Singapore new on Latin another in suite with prospects. they at Recent for committed Vegas OTT network I weather In future assets, America. cover customers qualified to and optimizing segments. our We're help expenses are in in This and key Central America makes from building providing models. reaction products have more Paraguay. at to industry-leading or APAC, This challenging growth, specifically content we and us technology share to our in approach another am and our led strategy go-to-market very our drive focusing CES and Magna an update the industry. to of countries Las organization their in Goldenduck fiscal and as drive our evolve revenue IBC in more a and adapted in operating our in -- also products both and as opportunity Overall, Argentina, out to have customers capture today Uruguay reach to partners experienced that our our Vietnam, have and new monetize element changing We video September enhance a January. growth partners discrete operations product management. Several customers added progress date, on visibility to profitability. than in new of the we and and accelerate partners, strongly several potential innovative our are and market partners XX BVS partners to we Thailand we APAC in our already which customers, positive include while of pleased prospects

over and fiscal our to With to full-year are we've XXXX, achieve the our the the With significant financial we outlook that, QX XXXX fiscal to for please believe fourth and made remainder this XXXX, provide ahead. of you we I'll turn and walk quarter in call fiscal results Peter, well-positioned objective through for go XXXX. Peter the progress fiscal

Peter Faubert

Thank you, start you for guidance with quarter full everyone. third of an results Ed. before fiscal our XXXX. the afternoon, our providing by updated Good quarter outlook reviewing the fourth and for I'll year

over we that for year. quarter new $XX.X third million. was maintenance and entered well quarter $XX million, backlog third range. fiscal fiscal As quarter booked last pleased third quarter of XX% and of XXXX of the revenue we excluding million of increase total and $XX.X Ed the with the in are We backlog, support, $XX the million recorded third during third in the in guidance our mentioned, ended a our million above quarter revenue non-GAAP $XX.X both business with came Total EPS we the quarter

the nine driving Liberty a our in nearly of and led the deals completion in legacy revenue for decline XXXX. product the driven over multiple our in the by prior software professional in revenue subscription years Liberty to products. performance product In additional year was first increase I we with performance spread as fall to service support sale quarter. certain in sized customers These combined reduction software by quarter, existing value offset that to Global to new revenue than third XXXX, fiscal deployed to and expect to fiscal one; maintenance hardware the in The was licenses somewhat software This and deal revenue prior quarter in related third is There be revenue customer. close $X.X a to from to previously revenue and customer fiscal tripling approximately The was an upgrades are driven in product mentioned. in from little Adrenaline the by into especially deals During XXXX. booked licenses, our revenue increase of be rental year-over-year quarter quarter similarly tripled to more subscription and recognized that year a to months of pipeline near compared with services hardware revenue decrease revenue that in we sales two, the Axiom fourth the of very with million in related two Global. the offset stronger professional continues same that

We license deals have good pipeline related of a product into visibility sales. to Adrenaline software strong

XX% product total backlog, for remaining revenue quarter we in third or includes or the revenue third the last $XX.X revenue year. the and or total Global. revenue million revenue XX% more total $XX.X to product total product million additional in or in the was of revenue accounted the of $X.X certain quarter fiscal hardware million XX% of experience In revenue compared service of product in revenue Total $XX.X projects in year. deliver platform quarter to was XX% quarter last and in quarter at to Global. from software, or software license of driven Liberty of by we total the $XX.X $X.X continue decrease Video The the user to the will ago was $X.X revenue revenue revenue. Liberty year revenue advertising. revenue was XX% the of of of of software compared addition, in products million compared services million primarily XX% third total revenue completion The Total generate third including million as against year, product from this million

XX% revenue year. to hardware. the revenue continued totaled totaled million Maintenance professional platform Video addition, in revenue revenue million down in video was quarter of accounted by same decreased maintenance total decline streamer user the driven customers the legacy revenue with $X.X revenue $X.X customer Global XX% In legacy revenues in $X.X We from last million prior for includes related quarter the more of for to revenue of of due or in contributing service total revenue. third the or Revenue $XX.X of million support. decline third quarter service compared total in $X.X and revenue of to XX% total XX% to XX% $XX.X maintenance last remaining total The decrease and of in SaaS million $X.X account of or from service million international quarter of one experience revenue the year. revenue third total million affiliates of revenue quarter. than the XX% XX%. XX% compared in revenue of service had its year The in and total and Liberty

increased XX% due the profit to quarter in to and blended our XX% generated from year the compared Our program. gross third quarter, to margin product GAAP prior mix efficiencies restructuring in

to year effects license blended year third prior total The software non-GAAP XX% prior the restructuring than in third the XX% the non-GAAP our the quarter a our in Excluding continued gross revenue profit year was charges to in of fiscal in margin reflects contribution margin higher and in the revenue prior program quarter of quarter. from XXXX, improvement larger compared quarter.

gross Our million about of but $XX margins product in to through million we in the year quarter compared million software the the third quarter year. year, the prior included last the Non-GAAP third to year. non-GAAP investments projects expectation year in current operating fiscal in with sales same quarter which quarter in to XX% to shared from due rate of the license the of end run to quarter Non-GAAP million margins the per primarily prior current of higher the the gross continue end XXXX. These XX% business was declined quarter and year. third expenses XX% one-time was as in third at year-over-year this more same $X.X for process. $XX.X XX%, improve in expenses last that you will fiscal infrastructure in included of approximately mix, products than the quarter quarter the $XX investments compared of fiscal service Operating

quarter. In addition, resulting expense, from we incurred strong $X and commission in our million approximately incremental bonus

We continue operation to Poland labor see cost worldwide. efforts to our the benefit we leverage from drive engineering as lower

share above and income operating due performance to fiscal product basic fully diluted non-GAAP and $X.XX operating more our share came in last benefits Our in This development initiatives. operating the restructuring non-GAAP of the from performance reinvest to loss to to per third also strong initiatives largely improved compares per $X.XX guidance topline range, the aggressively of quarter us and of allows continue year. our in well

equivalents we sheet, quarter operating and customers. the to balance primarily approximately in with offset due cash invoicing approximately no our the changes timing quarter, of the partially to cash $XX during debt. $X related million Turning capital, income million, third by the and third ended working our quarter, In mainly generated to of cash by increased

restructuring today, As our of of we activities worldwide. completed have most

believe of As in a which incur additional we result, charges cash expect quarter year, restructuring fourth do the this we not to be fiscal significant. will

fiscal from the collections the and of million quarter the primarily of XX, Including of unbilled out compared in increased quarter, to the last prior well as of reflecting this the to totaled fiscal as $XX.X deals days timing from the XXX quarter Deferred $XX.X year. contract January the flow receivables, Day product year, year. $XX.X strong this cash cash the sales current close XXXX, quarter sales quarter positive third at we expected days third days of unbilled the third fiscal anticipate quarter, of quarter XXX in quarter million, billings sales delivery as both million from business we timing of of totaled Given reflecting the invoicing certain in XXX generated to growth our XXX third third compared year's the receivables subscription outstanding, day annual and last as of this fiscal service outstanding in third deals. days fiscal end compared year excluding of year. prior of fiscal in revenue

the one we these of The outstanding received customers Our service the year. in third the quarter sales year. million contributed day this of unbilled third purchase million for from decrease compared to marked lower quarter. to invoices during quarter fiscal which reflects against were the in the the prior timing contracts, a receivables also of $X.X quarter largest our improvement orders invoicing $X.X year, of for for fiscal The last

As last reduction the that announced I of most we completed cost program just noted, year. now we have

profitable approximately We will addition performance on XX% than saw topline basis annual to have the and in achieved in operating higher have our revenue for run and rate goal of in million XXXX. what quarter. this we revenue XX% fiscal now rate product $XX be enabled million extracting In us in between progress, this year, fiscal that to in of expect year. fiscal savings contribute total This an annual approximately we $XX run total our realized XXXX, savings

XXXX We expect approximately decrease fiscal of maintenance XX% XX% of in revenue fiscal total in from total revenue to revenue to XXXX.

service revenue to which from due XXXX down revenue total previously that to discussed. of fiscal in We expect the we professional fiscal contribute reasons is XX% XXXX, approximately

customer of shift transition in quarters. performance to expect mix models, to licenses revenue. already XXXX, course impact our the Over revenue as cloud-based this recurring deployment We've seen topline fiscal monthly continue to prior perpetual start from our to to we

$X.XX of in that and will quarter to revenue, going revenue this income will transition, thus forward. As per of diluted we in predictability continue of anticipate fully increase fiscal range operating XXXX in the range mind, to our through revenue With this be be improving $XX visibility non-GAAP share. will the we we of million for million recurring and the fourth that $XX $X.XX

raising expectations be $XX full the million. to revenue in are of the to million range we year, for For $XX

license year products to the currently be backlog. and in We expect revenue by of driven software of in growth delivery remainder sales the primarily

us to the and product cost allow mix that in initiatives XX% range. gross cutting revenue margins maintain achieved the will expect We

outperformance in are Given for income full XXXX, favorably of back of QX the our you year to range per guidance diluted $X.XX fully adjusting for very to Thank Mary. With XXXX. that, share to non-GAAP the call hand a share we the also I'll fiscal per much. fiscal $X.XX of

Mary Conway

you instructions Thank for provide session. please you, Omar, Peter. could the Q&A

Operator

At [Operator from with Our is proceed this your question. Steven conducting time, instructions] Frankel, first session. Please be we'll Doherty. a question-and-answer question

Steven Frankel

congratulations. a its mix more coming we this digging of is terms relative is the a can the here if revenue, then, spend and it more that that saw afternoon on? in on pieces Good that minutes Ed, in Liberty the European in contract from you couple product when hail we American size piece, of and and Does on of service begin product do seeing Latin anticipate and QX to what's QX? maybe what

Ed Terino

So, revenue, my range and the revenue. $XX portion incremental I in includes revenue services script in referenced that the million licenses. of and revenue is number the licenses support opportunity license maintenance The of purely

EMEA. on calendar So, there all latter much year those expect we numbers an opportunity pretty that something is owns certainly opportunity based is of the be happen XXXX half Latin in There could calendar properties year and Liberty in that to into would that America are with and Global the and that there XXXX.

Steven Frankel

Okay. to And would that you EMEA? relative size might be opportunity what the

Ed Terino

going that. do I'm to No, really not

Liberty acquisitive has Latin know America. and you South in As America been fairly

for size would us So, to be really it do. difficult to

Steven Frankel

Okay.

couple pipeline and those start a to so, convert that spend building at that revenue opportunities, to your And how end-to-end and then when sign do talking deals start you hit line? is to the let's what you think about pipeline minutes

Ed Terino

in expect you lot those want guidance Steve revenues architecture several doesn't have to any customers QX, to the they these on but to we some deals of end-to-end would deals comments, closure his time coming solution do that from in implement. closed. predict to is in spent we've as some know our similar and a it to with that of think what that, our the want up but rates they difficult We close deals evaluating indicated pipeline see are include Peter of the start as of I to that deals already So of size really

Steven Frankel

is initiative attention, of back in Okay. you think office a obviously is lot sell a solution the people that you to that of what get other cloud-based to And skipping do win to your kind high-quality base? will back that opportunity customer the Liberty

Ed Terino

the think I opportunity excellent. is

Tier lot I X think Tier you them cloud-based sort an customers. of and It their know the I X looking move as mainly a but of Rogers, time Most from to focusing indications Tier Comcast and I traditional were to platform. seen that not that it to on some evaluate given Videotron. premises of Tier of think operators on a cloud video is have most, Cox, to to recently we've consideration that Shaw transition selected such operators, think several X something platform takes strong them and X have the XX XX Comcast

Steven Frankel

this year, now And major end releases new terms and product like of look development, the in with fiscal big in Okay. terms was what in year between of is of a product? especially some 'XX the

Ed Terino

our go-forward based are I So, of financial on think now. a in the projections lot have we queue development selling what

this two Adrenaline upgrade we looking month features Adrenaline believe to added some compelling will our release be that mentioned, things one that customers that have we the is Adrenaline to of upgrades, will to. next So, to the we're version

release version content So, will install we the expect solution customers asset of will version we next have which customers. upgrade main then that target solution, in quarter, who our be expect of to management the existing that And flow base our year. to first that a Adrenaline for of we number

rest pretty the customers that have the who committing into the we can customer XXXX. to close We of we one convert and throughout to is think upgrade XXXX and

principal of So roadmap are XXXX. for fiscal deliverables those expectations drivers two revenue real our

Steven Frankel

and you or positioned do now growth got turned this profitable the here? other remain grow sustainable for before And can you're and from company that you to things have Okay. like feel you've happen corner comfortable you've

Ed Terino

I -- sustainable company growth. positioned have for think we the would I

future. has out type quite as leadership senior shifted to looking at a think from I day-to-day looking really that bit a our team into two, quarters the challenges one, focus three

I in year QX growth that going QX, to think growth. encouraging will development focusing next that how revenue we're of is think QX, sustainable but revenue and not now drive I we're drive on in So,

Steven Frankel

from nice a the I'll That's change years. pass else. company's time all. you somebody last Thank been the over where the couple to

Ed Terino

Thanks Steve.

Operator

Jaeson Our Schmidt, Street is Please with next from your Markets. proceed Lake question. question Capital

Jaeson Schmidt

guys. have bit to for the comments. improved? has your you you say previous challenging current launches on it visibility just the want to when that to visibility you know actually my that forward? I in questions. good taking believe about of Is the challenges past hit it follow one little P&L, but be visibility Thanks has Hey forecast? bit that I up fair your the your pipeline, talk going can a a to these Can and confidence of been

Ed Terino

do I improve I we're our I think has how with proactive visibility go about we to being think the sales but initiatives. Yeah, more has improved, market believe visibility because

So, they you real implemented. any how could that any an when part of product first upgraded that were SeaChange, going to of wasn't initiative to for convert for I version had joined let's existing there say customer a identify we example base our

better is, have customers we who data to those the them. obviously Now opportunity much want what we how market on are, approach

towards We help materials working are opportunities. our to after those go salespeople developing

approach much taking going to more we're a market. So, to proactive

better data what will take that opportunities. creating close into that's So us for and those to it visibility

Jaeson Schmidt

January, but at how forward? in we should should sense about down OpEx OpEx, we Calendar in will makes your Assumed be how That and given think Okay. guidance think mix that about that more so XX, then that traffic? looking going

Peter Faubert

this Jason, is So, Peter.

had going to some that traction gain in throughout long-term. efficiency were we as One, year, OpEx. around more things create to reinvest I the business we our couple improved initiatives with processes a cost-cutting indicated internally there's think I

happening. is that of Some

business So, those end I indicated of we fiscal the we'll are spending why fiscal next continue efficient this to money operations that redesign year. around through make allow to get process of to some year. to us investments That's more

think end return at we projects those last about talked enter I end the of as OpEx we that the the we one-time targets I fiscal year. to fiscal will once year, next think

we investing think target but steady now our indicating I are to reengineering range, that right to OpEx am state in I still $XX term. some run business efficiencies that $XX create million million So, more is rate long process

Ed Terino

that use full to effect engineering I put obviously sales those some when there of and back expect efficiencies improvements, to to we're spending. our and would add the also have cost marketing we see we going into of efficiencies

we'll with So, are and OpEx, in that engineering the additional put some sales total going shifting to realize Peter some quarterly to marketing. the is money OpEx of right into from back on but estimate and of number, we savings Wausau

Jaeson Schmidt

Okay. That's guys. lot a helpful. Thanks

Ed Terino

Jason. you, Thank

Operator

is Our Khorsand, question. Please next question BWS from Hamed your Financial. proceed with

Hamed Khorsand

first just there Global, was mentioned in licensing Hi, this on you off Liberty that $XX revenue. million

-- the to expect that you two there Can linear what aspect from describe to is Now, be it? going just a next over is years?

Ed Terino

subscribers. today affiliates Liberty So, adopt predict. total platform no has million that of progress that's to can a or in each of number and are to is that XX the focused rollout The really and local something that able dependent Europe about based there this program they so on affiliates subscribers that XX of get one are is on how

think have unpredictable and really requirements. each Realize each to progress we have their reported the progress through and purchase those far that news as they I this the is the But The they're going licenses they how good speak led they’ve depend this because different as to to affiliate. was rollout affiliates going as their languages, all what it's they as roll to quarter. move on they it's possible. they different that of customs, they affiliates out affiliate out would as to like that quickly started make go that different

have rolls where much States their They the like every So, pretty state, out solution. it's same affiliate. adapt in solution to states, XX it's to the United across XX every not the Comcast really same single language,

rolled they when lot about unpredictability out. a it of creates that So will get completely

Hamed Khorsand

been And guidance. last sales the three of times two referencing Okay. then revenue you have or quarter, midpoint pipeline

to This three sales about you're times guidance. quarter, talking four pipeline

coverage. bigger pipeline, seem more have have a like So, you I you guess you

you're outline the better far and what's doing really not or numbers the figure trying out you're QX? sounds but having job a last just as this as into it like it quarter either drop So than beating quarter, significantly better -- more I to guiding am QX?

Ed Terino

there that other. a a to significant in go or that call, one may choose options terms then license think both the variables whether mentioned one perpetual or revenue which the I We and purchase on decision-making. take of We lot offer one of Correct, they they want the into is a recurring approach. is

So number dependencies. third the of and the that that that to deals also are see that you Dependencies obviously that relate impacts revenue. deals have bookings may may are Dependencies There our to relate customer. there predictability growing parties.

know revenue. that realize So also the impacts we'll ability our when to

the news pipeline for the areas say is pipeline would in growing good have around I and I opportunities more mentioned. I we SeaChange So, the solid think the is

think bit unpredictable these I opportunities. closure on market still the is about a

Hamed Khorsand

Calendar Mac. more of then and you're X providers I lastly And the update out into 'XX to callous these almost Okay. think drawn service Tier for just now going what's draw

to to providers So, service board? X what's come going draw of more these on Tier

Ed Terino

I legacy their that's do through will think say, for they're is we -- their cable IP servicing devices set-top buy that think and to one. and trying the that's multiple Linear And boxes. mainly capability So, around platform the really trying from mean And driver plant box main Linear through traditional I need an would think monetize I what implement IP other offer for that us. and is VOD a opportunities requirements, IP to they to what I they mobile devices reach. by set-top

their thousands to to they that of from provide but environment they drive that to capabilities have thousands revenue set-top replace don't that subscriber. them, in they So, really to want boxes more hundreds want have of

from because different So are need for traditional more devices those to to there's capability manage third delivery a one is for challenging becomes content devices, in multiple as to forms. go two. them cable it content having those A a they different management

put management place So in to them that requires content a capability.

So, our X opportunities think buy those customers I looking three where Tier technology us. more will from be to

Hamed Khorsand

trying and Okay. assuming customers. the follow-up from I having with here, I quick those already I am you discussions you're that I guess ask said a just to know am what is these earlier

them am the So, push deploy get. edge to to to is going to what I what get to this, trying tax trying I am that's you what's

Ed Terino

I if able unpredictable. win purchase There's that that, of very budget the indicators very a say Well, it's the It's Its no I availability. to what clear lottery. knew decision. I to different. No, I answer would think very, very, would drives just be

Some get delayed a decisions year.

I've the spend to Some happen factor speaking, it's is they the will the if there that funding. and have generally -- availability would no influence of is right funding really they want any they to one factors can't decision. decision. point there But the I I timing say If a of make away. money, seen the

Hamed Khorsand

you. Thank

Ed Terino

Hamed. Thanks,

Operator

BCM. question John next with Please Our question. is your from proceed Zaro,

John Zaro

congratulations. guys, Hey

Ed Terino

you. Thank John. Hi

John Zaro

of work. Lots hard

they because new your part, the going partly products new and On next products, of have rolling the issues -- affiliates rollouts couple cloud have new like been? everything the as these before like most they out products company Liberty you these time, out roll would that that, years, particularly cloud know than to when and they're as the using situations, things to it has it of case some the in cloud these because and them over easier so are these out the the various had you to speak historically they many but different languages you different somebody roll in out, point is or new going rollout When else.

Ed Terino

is. it Yes,

John Zaro

We as don't many issues. have technical

Ed Terino

still disciplined we this. -- as there go how And to company absolutely in issues, about still a are It right. be technical we have better

integration lot products and are So, we a quality customers. our of release assurance emphasis we to on putting before testing our improving and

is these already The as on roll reasons certainly a you're part really the installation, defined premises CDN, it and of situation, them to to on When cloud, the would have them that's premises platform. in production, on can cloud-based of reliably. go situation. before easier customers that solution. importantly an it other with fast implement closing why aspects to the the implement And is other the solution an is environments software than quicker and to their More environment the of ecosystem the the lot in that in have be test premises the really one network, more they deployments, in SeaChange's it for but where where they lab of situations cloud beyond need actually out have the reason in and we all able pieces that we you're

John Zaro

Okay. Great. again. you. Congratulations Thank

Ed Terino

Thanks John.

Operator

for of would Ed end the Terino I the reached turn back have we call question-and-answer gentlemen, to and and remarks. the CEO, Ladies closing session to like

Ed Terino

reducing hard revenues, see improve strong is improving can and its its working you delivery while increase customers capabilities results, As very and very to these gross quarterly expenses. schedule, operational product roadmap revenue from operating respond SeaChange margins to meet its pipeline and expand its

achieve strong revenue to in us support we company continue to return interest for quarter quarter and of fourth -- and well. XXXX fiscal Thanks results elements deliver the critical confident in as these this us profitability today your the and of and SeaChange. to enabling We're the third growth. can continued for were non-GAAP year of contribute everyone in to All that joining

reach any If free you to questions, have please feel out to us.

meet to there, January would you meet happy in like schedule In Las attend if the like we you CES time. to we and to us addition, be with plan in -- to Show some Vegas, would would

the late Noble in we Have great meet would evening. will then. investors night. an at be Conference presenting and opportunity to Lauderdale with Lastly, in Fort welcome a Good January

Operator

This concludes conference. today's

You your for may at participation. time. Thank ` this lines you disconnect your

SeaChange International (SEAC) 6 Dec 172018 Q3 Earnings call transcript