SEAC - Earnings call transcript Q1 2020 | SeaChange International, Inc.

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Operator

Greetings, and welcome to the SeaChange Corporation First Quarter 2020 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 would now like to turn the conference over to your host, Mary Conway, Investor Relations.

Mary Conway

Dana. you, Thank and everyone for us. joining Good thank afternoon, you the of today fiscal SeaChange the released ended quarter for results XXXX final XXXX first April closed. market after XX,

can copy If like at investors.seachange.com. Section of access website it the of you our on a release, would IR the you

being With today's is This Kielczewski, Marek our Mark Technical Officer call and Bonney, Faubert, Q&A. Chair; Peter webcast Officer. me Financial Chief Officer; archived our is Investor Commercial available be on also call for section Chief Relations and website. are on Executive Yossi will Aloni, Chief the of

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

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

reconciliation comparable tables a measures provided have in most attached directly these We the GAAP to to the of release. the measures press

I'd of team. Mark? the that, call over remarks rest the to turn with like And the opening to introduce Mark, who'll and provide

Mark Bonney

Also Peter join on here Commercial XXXX. Thank Marek our everyone. Officer you, to update far provide am and by Technology to our an Chief is thus us our in Faubert, Mary, Yossi and afternoon Officer. Kielczewski, our today good CFO; with pleased progress Aloni, fiscal Chief I

of industry changes past and a CEO of Yossi over Aloni our of our adoption at work the framework new retirement our director, longstanding and Several at market of strategy Chief independent as of two the acquisition departure our full the directors, hard been including occurred officer, to important SeaChange new and addition several Xstream, the veteran have months. Commercial integration and the have the settlement, We addition solution. shareholder the a of go significant

in We framework to provide recognize cleansing to not features more impacted of client-specific are backlog require know by and financial to that quarter resources that it’s were that develop engineering results our our not good. contracts the the of which but Peter the with first details results our were in dedicate important later, our will line significant removal will solution.

months It’s were and without customers of SeaChange to than less do two year able shared plan the strategic our results. positive a fourth and quarter flow been cash this year. fiscal this disruption and significant since the those with company to transform or revenue by with growth to to we customers. end We relationship the our Along restore full

I will share to end-to-end As critical our every instead individual includes mentioned, we delivery strategy this strategy our to market the package our in plan we components provide that offering our go to a more future. we solution with other call solution where and and detail offering them. to in change elements system There our that customers, management you to an video and that component are of framework

you and lose in greater provide and why competitive fewer it solution have so the are He framework tell Yossi also reasons, will specifics detail as mover confidence launch the progress. initial about about reaction minutes. to for today, to few approach we in and But marketing advantage. describe a sharing not more sales first the our will we and our such

effort. extremely team on marketing this to whole I aggressively that am has really the working pleased say and sales been

quickly as nor this the to easy, market can completely that done like. know would the altering other before on in approach anyone have as many We isn’t As team go done it environments. be

That said, revenue framework our from customers. signed both have begin pleased and existing to be appealing these indeed our will that our as – fiscal We of points quarter, recorded and our XXXX. we our now important proof this second quarter significant is are to new first of that we today Five deals deal.

On on the includes carefully. reducing we financial efforts front, manage also will in reduce to as a such moment, are our our we Peter as resources very and describe focused This continuing expenses elements expenses had expenses, the operating G&A in non-GAAP runrate operating particularly go quarterly to on reduce those than basis. forward million $XX a less from million previously most and those targeted $XX that

on We report this across and the in have reduce next board steps cost detail third-party more we quarter. taken to

effort us the the While have a We right technology, are solid right this and professional and our been ingredients. sales and a and focused structure a implementing to none more committed plan. approach, right-sized of believe It’s marketing people. we we expect underlying to easy, be cost thoughtful

we progress end end, told April that we today stated guidance to in momentarily. versus one cash year that provided last our we As of the you To we on transparent as on goal. our with discuss XXXX on metrics alteration will reporting call, balance be reaffirming are our XX, totally plan I

deals XXXX, metrics are, service offerings our annual was from an multiple basis. and year performance which those goal with to close to today first XX our XX on products fiscal respect For to significant and

five closed deals As fiscal of since beginning XXXX. I mentioned, significant we the have

increase $XX revenue range to percentage low the lower total service in despite mid-double-digit goal million second revenues. to million Our $XX year-over-year to annual to

pipeline of framework the remain both in the quarter, on in future of by target. year significant in the and quarters confident QX the full revenue despite cleansing first and we we progress, are encouraged of impact revenue, in our our backlog deal Our growth

gross maintain the GAAP margins Goal was low to three XX% in number range.

consistent produced with been the initial framework to this have allowing are that deals margins in progress, Our goal. us achieve

am track development complete this three new on our pleased to are goal fourth I Our achieve to the of say, significant product product efforts to offerings. goal. development

eliminating non-essential fifth costs. and reduce costs continue on to Our goal to third-party by reducing focusing was cost essential

we has third-party been reduced costs. progress Our that have

with ahead these are be our third We and reduction in efforts will quarter. of cost plan completed we

$X.XX and operating fully deliver Goal operating non-GAAP our to metrics loss of share diluted revenue of this six, and met for goal we diluted metrics, our share. be gross margin can per $X.XX between income basic our a per on full ability Based $X.XX GAAP per to share believe achieve fully to to between income $X.XX results year. the

at To Finally million our XXXX. cash to by cash to million million end fiscal $X $XX flow. approximately increase $XX of $XX the from to million $X million

end cash goal $XX being balance The million Our share XXXX. to reflect of announced the the $X year current million $XX program. altered to cash outlook goal to is repurchase million newly is new fiscal at

buyback operating performance. that how formal should modest reflect that the the serious believe of believe financial that buyback, and we to plan the longer about price our even at stock program, are establishment to respect over a the performance SeaChange and we we our improved share reinvigorate With level demonstrates term,

transition compared the important a in potential. this year, believe especially our to share demonstrate we time, is we that undervalued to good In to and shareholders mean our overall investment it’s price believe

to generate that current of the to and guidance. as continue year. the quarter results not Finally, full as that start the pipeline our to in yet the us goals a transactions, achieve our build remain financial we with expected, from fiscal revenue deals in annual will confident beginning financial strong first But are line we for framework enable from quarter

achieving a foundation to that business We that goals income double-digit to the sustainable, model solid margins these from and could continue believe will for XX% years. revenue non-GAAP also of three XX% two establish growth to one operating result in

Yossi. over call With to me turn that, the let

Yossi Aloni

fiscal and Mark, update everyone. in the hello Thanks, pleased an I provide to you am period. XXXX with our progress on

Earlier and solution office solution. editing standalone to manage is media session from video-on-demand. encompass we the back the as know, which video business This video enhance and for used this enable The launched to don’t end-to-end the SeaChange to products, you title. asset us provide linear management, the platform unique year, which operation all framework to dynamic normalize solution our

In the apps browser-like providers content connected and enable and as solution other well devices. insertion personalized smartphone capability, addition, the framework tablet, as an with TVs, client and for service internet

endless and analytics of All engagement production. and through insights video predictive leverages, these

is drops. revenue retention with base cloud, the bringing available dynamic The an to and to IT customers TV realize enable goal enabled experience households. in our or increase framework reduce targeted SeaChange that are by The viewer browser-like product. to almost games by device is help the revenue, by as with and Customers newer on-premises, final increase video

and Additionally, over-the-top viewer retention for is enabled within the legacy set-top-boxes. viewing experience both

of All unique SeaChange customer often their meaning savings cost that base of out value-based these that expenses than of and the engagement, our realizes the greater customers savings. the operating is

our markets support also marketing we upgraded engineering talent customers which QX, customer experience proven key During with with team regions. along and product, is critical to and in sales,

building and video on confidence and premier SeaChange focused management specific very solution is delivery leveraging team accounts, as target relationships previous provider. the end-to-end in The

growing achieve now pipeline in are revenue well that of to opportunities targets as this year, our we revenue as goals. result, and for confidence will term our our longer profit a allow As us

initial points even believe financial yet strategy contract million is committed validate if our value. are We win results. wins total We outlook in proof more than five significant with demonstrating customer contributing evident our $XX this the in

are revenues expected in producing with quarter back the in current framework provided in year, half will and of annual the involving April. platform Contractions to the focus in increase we the begin line the

leadership guidance we quality We to our framework annual April. about confident skilled revenue engineering with ability deployment, high and R&D is working our closely delivery remain We highly our achieve the shared ensure in teams.

end, growth recognize our SeaChange To meet and that driving our delivering community customers ability the and we our confidence results. must investment with we We focusing are on to that demonstrating in instill targets. by

call With Peter. the that, let me turn to over

Peter Faubert

I'll quarter Good million entered backlog you, a new quarter with our We of We booked million reviewing maintenance first during with support. $XX.X Thank backlog and $X.X the total of of quarter XXXX in million. first fiscal by Yossi. start first and business the ended excluding $X.X quarter everyone. the results. afternoon

more have in the second with far, value five total we quarter, of a deals than framework closed million. $XX Thus

our grow we continue and our current more Given that framework revenue will backlog from from to expect years, engagements products, multiple will backlog predictable. become that over that revenue multiple contribute

of quarter in to primary new quarter revenue due of the in product compared $X.X was driver Both fiscal revenues million, were lower the this shift quarter to year, year. engagements to sales primarily million more year. same first prior fiscal framework last $XX.X and aggressive compared our the to first the the as Total service

As Yossi second will starting continue engagements the fiscal second to half. these and contribute stated, in quarter will of the year this throughout framework revenue begin

first related quarter As discussed no during the the backlog engagements was there through quarter. related first engagements revenue legacy year and previously, framework was solely recognized in from of revenue this working to to

the ago million in total was XX% $X.X revenue to or revenue product year quarter $X.X first of in the compared or Total million total of XX% quarter revenue.

license advertising hardware one customer and revenue was revenue platform and driven by Product the primarily quarter. our OVP upgrade during with

first quarter in of revenue last or was services compared million or million for the Total quarter to total of the fiscal XX% year. first $X.X $XX.X XX% revenue total of revenue,

in aggressively the more the to transition from expect the framework legacy those we decline support existing engagements, in related As and of maintenance products. acceleration customers, with customers revenue an we

expect customers. of with We renewals framework and agreements replaced be those forward. will by support a To maintenance lower arrangements of going agreements those rate

newly transition In our customer the a addition, to of directly our framework. support will organization, as professional engineering customers which services function part will created

and services compared in year in revenue million $X.X quarter professional to and respectively. maintenance million $X.X support $X.X prior the total million and services $X.X the was million the was Of quarter,

year prior revenue XX% year this international quarter from total to or of of revenue million million XX% in total in customers Revenue quarter. the represents first compared of $X.X $X.X the

each more quarter than more fiscal the in than of the revenue first XX%. comprised of last this of in comprised same total customer year, XX% year, whereas customers, two of One quarter

to In the Amazon the non-GAAP XX% cost profit XX% year fiscal and this first Services prior quarter sales the versus quarter. year year platform driven of the primarily hardware to Web primarily costs third-party software license related margin OVP in in was quarter, prior gross XXXX, compared by

resulting prior in overall Non-GAAP decline service quarter, gross revenue. from primarily in margin the in to XX% compared was year the service the XX% first quarter

ramp and the our of to year. expect engineering first organization complete in this fiscal legacy customer professional engagements We service half

in to this to expect margins we engineering, gross transition customer future. both functions, the make normalizing professional service fixed and As reduce cost we support in thus services

quarter in the million the expenses quarter $XX first targeted fiscal level $XX.X year, to same million XXXX been under prior quarterly operating we $X.XX have the managing. million, which to of Non-GAAP the in well compared of were

cost headcount the software reduction announced decommissioning last reflects across of we September, expense savings The functions decline initiatives reduction all and worldwide tools. related that other certain including to internal

internal focusing and on control eliminating XXXX, we throughout costs by cost non-essential continue reducing During fiscal third-party will the costs to organization.

loss per of For non-GAAP $X.XX the operating $X.XX loss per basic $X.XX a non-GAAP in loss $X.XX a net per basic a loss net and compares which of posted XXXX to share. share fiscal of This to share quarter, the per quarter we of basic basic translates first operating share. a of

with to of $XX.X balance we ended end fiscal our XXXX the to cash debt million and at million cash sheet, no approximately fiscal $XX.X and Turning quarter equivalents of of XXXX. the compared first approximately

during that You savings remainder decrease shares quarter. during the in million approximately XXXX. cash will for in quarter quarter used of reflects XXX,XXX of fluctuations working well cash the cash in the of used initiatives well as first we and common the February Xstream to for as $X.X payments acquisition recall funds stock early as cost operations the capital The related as

in as revenue primarily the of year’s XX, timing the renewal XXXX and million recognized $X.X of $XX.X support million January agreements and during million quarter first revenue $XX.X driven and of of post-maintenance decreased the last from Deferred quarter. by

fiscal outstanding, sales Including year. end the in excluding last XXX of quarter in first XX in receivables, sales the first days XXX quarter days days unbilled last compared year, receivables, quarter unbilled first year. of XXX the of days Days of was fiscal to to first totaled outstanding the days year, of fiscal at this this compared quarter the

professional Our of milestones unbilled the to service quarter million first this receivables first $X.X invoicing million on were decrease the in is projects. fiscal quarter last result The legacy the of fiscal of of compared year. timing year $X in

multiple both this year stated, with laser-focused multiple we services support Yossi multi-year on to arrangements new – sell products opportunities are support and and under As existing customers.

will anticipate our fiscal to revenue pleased significantly it beginning We the in are and half. with second initial quarter, this with the and through success approach this second contribute year

end-to-end that reputation delivery now a the and delivering dynamic demonstrate with best-of-breed insertion. modernization commitment arrangements has capability packaged ad products, video These SeaChange in through

and confidence The positive return fiscal continues customers to response to us existing to provide in revenue will new we growth framework from XXXX. that

grow More transactions increased to our backlog of these importantly, multi-year the element us allow and of revenue. will predictability

stated upon to customers this last half XXXX fiscal of based part with to the flow to continue year. we profitability lower revenue operating transition expectations we As for will fiscal we and that our first quarter, related of revenue in multi-year positive believe cash reach second arrangements the

will Mark. I hand back And call over with that, to the

Mark Bonney

level Changes are employees our our we new well the not embracing Thanks, open Peter. One engagement final I magnitude responding point that company’s enhancing the fiscal evidence are significantly clear that that before and very our are the implementing easy we team. and questions. goals. achieve call to on are XXXX for accountability pleased a the operations of am is ability there and of improve

that, Dana, With now are for we questions. ready

Operator

with of first Our & question from Steven the [Operator Dougherty Frankel line Please Instructions] Company. proceed comes with question. your

Steven Frankel

did, the revenue because backlog going let’s start you what down. to or questions. like deferred afternoon. exactly Good backlog. don’t going this got I lots the of down But of with I’d notion the know purging I’ve see

that saw QX revenue go-forward runrate So, the we in the how impact that revenue? and in does

Peter Faubert

is this Steve, Peter.

fiscal that sold the in do of revenue, So, we’re through for and trying deferred essentially through and those that working of have terms projects year we those with customize were to customers. legacy some creating is customers projects solution working part last

to was those are be those we we of the meet work and deferring to arrangements, revenue are until milestones. we delivered through of arrangements what scope some those As under able

committing arrangements. we development going frankly, doing largely to through legacy forward to customized want under resources the that arrangements and those So, some framework not we are working what arrangements significant are be

Steven Frankel

rescoping, how QX, but what it in so, hit of didn’t because this QX. have hit revenue in – much As

Peter Faubert

lot are in customers. from non-renewal into think that existing decline of the framework maintenance enter coming is we revenue of I a support seeing as we and agreements with agreements

So, going they the this are arrangements, we lieu that existing obviously a of customers deals not the of majority support on and announced legacy with deals framework maintenance the quarter renew platforms. agreements were those signing to in

Steven Frankel

the to where does quarters? does $X So, it to of like couple What maintenance or does it next down in million it It’s – of go already closer sequentially. look below that? the that leads bottom? Is question significantly

Peter Faubert

you legacy maintenance think trying fact in off significant we pretty are declines move that just I and Yes, of some platforms. given support see the are going to agreements to those

Mark Bonney

thoughts Steve’s have you Yossi, And some on questions.

Yossi Aloni

will days to going engagement framework Yes, it’s customers successful of provide a to that them convert into we and likely them committed that Yossi. With a some cookie-cutter to to future, solutions are doing some the very solution. the we where them these of we custom have the are provide we with what be in it’s is

more get the may save to customization not may that will they we So going are or and functionality they need.

win-win So that's situation. a

Steven Frankel

Okay.

me maintenance product year but year million your back OVP. more let $X last So, went I a million that understand one this because, piece $X go went just from was of revenue down, which time, change Peter, to big in

I what This was also The issues. purging results current backlog really business. QX. There didn’t poor just is pocket any say, the an the in of were fair revenue QX. in there So, not production caused backlog would air impact guess, be to other in the of that

Peter Faubert

correct. this Yes, product are revenue for you so, quarter, absolutely

not are individual anymore. selling components We

only we customer's aggressively an was solution. for are upgrade the that a of So, forward. quarter the the revenue not providing spot all going outside the shifted pitching individual to to of But really because marketing the OVP components, solution advertising we we framework product are have customers

Steven Frankel

Okay.

Peter Faubert

anymore. upgrades to us sales do sell a not we a our to out is not and want to there if to legacy say platform trying wouldn’t those customer team But comes Now it. that’s says upgrade they

Steven Frankel

what’s of to million I $XX am aggressive $XX to million. today guidance square are trying where with like you

QX, million how of $XX that you in that early worth you’ve gotten the revenue gets current in of if all million much deals $XX fiscal year, the recognized in are contract? framework So,

Peter Faubert

current guidance, we licenses. the under software will the when recognition we to shift Yes, revenue revenue licenses related recognize

you services license historically which of will have said So, versus or think it’s XX% generally be our about and product XX% licenses time. if been what’s products mix service taken revenue, has been we over revenue

four So, those on the solution, as license shipments the for would price selling based we are recognize standalone framework licenses individual we the portion revenue the of the shipping upon deals products under of for licenses. those the

Steven Frankel

XX you ramp $X aggressive here? pretty that change plus make the of to to Doesn’t climb and from $XX change get quarter do million million to million between the in each need

Peter Faubert

Well, the we’ve you the got have $XX in contract value. think five about just… to and we’ve million launched that producing fact just significant framework total deals Literally,

Steven Frankel

And $XX million gets here. it’s X% recognized not that I of organized. that guess,

Peter Faubert

much revenue get That’s year. correct. That’s we’ll this in

right. progress that we’ve already are year that very are books with significant got against get the many – my we in revenue. But those are future You we’ve point in made to is substantial significant XX for going a XX the to of and five

we you there, to since we your we convinced – So, first beginning we in Missouri know what’s particularly – of that. I we much are the in that the and we quarter. that issue don’t see pipeline can But see based had very are get the – from need it. and you activities get have on the

Steven Frankel

do to of existing split you XX then, And weren’t customers deals, playing. traditionally least those areas at Greenfield you in where how expect new to between opportunities Okay. and XX kind

Yossi Aloni

– not target I you how take stage, exact am the with mind share back. a the know we though year. going achieve don’t this – let number, I already to this even If am to the we me for are step be At you going to numbers

come up. this target where each where with of of ahead know know the engagement in are closing we we and We terms we target. stand So, the one

them customers these are is not new Many of that of not content many or many, SeaChange This Greenfield, be past. customers, is are in are just the to say they these providers to targets existing service providers. meaning

company June. Mark’s to January. mind joined we in are comments, in going Now, in the back please keep I early

less We our and and NAB. completed NAB, modification is XX than than deals launched the We the NAB the started CTO, QX. getting his bad. at this XX Since onboarded that team less product of days, year. days till the today, not it recall. signed was team packaging in Mark of within in and books solution a early five

ready the if the in few we Now more getting have are books, we that’s obviously, reason five a to be that confidence. have and for completed probably the

Steven Frankel

more down you does overall give I bit get and right. seems little meaningful your for and take impact than the I’ll show it Thank it. or something that. confidence, stock you Appreciate All on you. the Okay. it buyback symbolic credit make can a But situation.

– And are one, revenue time the the framework deals. license pipeline These last on pure these to just revenues. on a

needs licenses So and the to you paper sign the or what done. get can shift else you

Mark Bonney

arrangements Yes, they are implementation the of framework SeaChange pre-integrated there so, the given are products. that all and

will of XX-day a and repeatable. distribute be XX-day it early point kind our software targeting implementation are in At some of period, products should shift. implementation We those licenses that

Steven Frankel

then, Okay. today? who with – and And deals Yossi, you who on competing are these

Yossi Aloni

The in think domain, our in much usual it’s days. easier that these suspects competitive terms I play that landscape, of

Needham the covered you probably that have one-on-one be longer review I’ll that and to set a up a delighted that’s discussion. in with We because Conference.

Steven Frankel

All right. fine. That’s

Let’s do else. baton pass that. to the somebody I’ll

somebody Let questions. ask

Mark Bonney

Steve. Thanks, Appreciated.

Yossi Aloni

Steve. Thanks,

Operator

from proceed question. Our the of Capital Schmidt Street Markets. Jaeson Please with with line comes your next Lake question

Jaeson Schmidt

what revenue sorry I of backlog headwind Thanks if you questions. Peter, purge for – April? that the Hey taking quantify did missed and the but impact was it, how for my kind guys. from the

Peter Faubert

is I components couple it so there quantify the a did focused through working really did didn’t I the was what backlog. say – I - to impact was.

work The part first as the customized to to that just needed of were solutions contracted we offerings that delivering component is some through. customers of last year

to tap And in working some is some to and through value backlog the into we that. cases that are there there, we problems solve in need

that some service we can’t revenue really working and professional invoice backlog. recognize through we are we in can’t the cases, So and

customers. to maintenance support renewals with the was the legacy revenue existing second component The and

sell and existing renew to in arrangement we them And maintenance those agreements. their when some a legacy of support support than framework cases, maintenance customers, selling rather framework and would are arrangements we

headwinds the are are facing product from that we real standpoint. those legacy so, a two And

about sales are the market selling talked to the I that piece basis. on actively and third was there go fact that, a with the one-off out products team new not The new legacy strategy, we

So to comes upgrade explicitly less products revenue going of ask platform. you're us also customer to unless for and see their a

Jaeson Schmidt

Okay.

Mark Bonney

one talking other what was about. Peter of portion Jaeson, point first the on there,

actually many in They we cases, haven’t the haven’t taken amounts are of backlog. those We out backlog. in sitting

We are and now necessarily will on to. when revenue be not taking we them know don’t we able

fact, required which In in that we it we move we that away the both comes. and framework that get will benefits customer development to when revenue, will trying from cases, means some of are frankly, into deal, which a and framework quite but revenue never us as get

that So, you. helps I hope

Jaeson Schmidt

up Now, $XX previous following years that on declines of mean, And sizable you in I revenue, just sense. deals but and million I over and six a range in year, have know makes after of the the annual haul. five pretty revenue questions then QX starting this

all you your you of engagement of you can a top-line deal just is size? be would pipeline that XX% what how grown engagement of Can growth we How the quantify if comfortable Any the additional or color pipeline sudden achieve guidance? could get do about at has midpoint in helpful. that talk

Yossi Aloni

Jaeson. Yossi, is this So,

in First team at The past. have it’s that we the that SeaChange done team confidence. have it a the go-to-market today go-to-market

delivered this with they domain, XX%. complemented guys it’s – the And customers Latin of or with many these competing, at it. looking are In have complementary solutions. Europe, you growth in for America, America have today, North not whether have they if we over years many solutions done And

So of that’s confidence. the part

the Second reason confidence that feedback for we the from are customers. receiving is

well opportunity, the our solution now, NAB keep keep providers, validated mind, right also not only XXX. are team the is the – launched was considered meaning mind completed again, And do timeframe. in of around pipeline, one onboarding in please and where So, key we pipeline probably an is solution as there we over

market. So from solution. is obviously, receiving that’s this for next in you are to we that for And harder and the the the confidence will bit be the reason feedback the judge

product. feedbacks when to great our We have a went products. just from is see in They customers The be we outstanding. Needham, demonstrated wanted

great product, a is there it. have landscape, you competitive you is you usually can when simplified demand, do there a confident, a and And are and

Jaeson Schmidt

I forward? Okay, well add Do cost the side. third-party going know shoring sales the to to some headcount going forward? out plan headcount okay. at on strategy remains you And you cost relatively Or build kind up of the flat are

Peter Faubert

think we some reductions some cases. see will all and cost areas from that I in come some in savings So, headcount

We are engineering building out also the customer organization.

So framework we strategy sure. are for support hiring to the go-to-market

the headcount perspective put will plan from headcount transition So, we haven’t But se. per in a really a restructuring place continue.

Yossi Aloni

it’s could to more fair say, or less It flat, be yes.

Jaeson Schmidt

… Okay and

Mark Bonney

Yes.

is important sales organization organization to The other or group engineering bit the But The here further. out point little needs the sales that the is built. team customer is built customer support be a here.

this team. previously important modest to team the done leading the was with Yossi And It’s note previously. Yossi that the when he said, has that team has this done

as to important you that's So, well. an point for understand

Jaeson Schmidt

think between Okay. fiscal service targeting? And product ultimately we and you are sort XXXX, then, guys when about split what finally, of

Mark Bonney

revisit have which services and the is I standalone is continue understand obviously, XX% like before, but prices said like, to so, consistent with had really how Yes, what framework look our what product, modeled we to the sell this going historically. we structured and as multi-element we engagements selling pretty XX% been arrangements are

is the services is in around XX-XX economics strategy because what lot there be the of we still are different, of though even split. in kind products So, selling should the go-to-market our

Jaeson Schmidt

lot. Thanks Okay. a

Mark Bonney

Thanks, Jaeson.

Peter Faubert

Jaeson. Thanks,

Operator

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

Mark Bonney

the updating SeaChange. hold you in on progress end the next we questions. Thank year when thank against you, Please XXXX we reach and Dana. out quarter interest you Thank your QX forward full call. for today. our feel of you look continued all attendance Until We with for free our current goals at to then, hold your our – this any when to

Operator

This concludes today's conference.

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

SeaChange International (SEAC) 6 Jun 192020 Q1 Earnings call transcript