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SeaChange Salts Away New Deal With Liberty Global

SeaChange International said one of its key customers, Liberty Global, will use the vendor’s Adrenalin multiscreen video platform to help power the MSO’s next-gen, cloud-based “Horizon 4” services.

SeaChange announced the deal on solid Q3 results. Shares were up 60 cents (21.43%) to $3.40 in after-hours trading Wednesday.

Financial terms of the new Liberty Global deal were not disclosed, but it keeps SeaChange firmly engaged with a major global operator with deployments across Europe, the Caribbean and Latin America.

The cloud-based approach will support a virtualized video platform architecture for Horizon, and enable Liberty Global develop and deploy services at a faster pace, SeaChange said.

“As video platforms transition to virtualized cloud infrastructure and enable advanced capabilities such as replay TV and network DVR to multiple devices, SeaChange will continue to support customers like Liberty Global to monetize their video assets and modernize their video delivery platforms,” Ed Terino, SeaChange’s CEO, said in a statement.

SeaChange, which has been undergoing a restructuring and facing calls by an investor to sell the company, announced the deal as it disclosed Q3 financial results.

RELATED: Investor Pushes SeaChange to Sell

SeaChange posted Q3 revenues of $23.4 million, up 17% year-on-year, and GAAP income of $900,000 (3 cents per fully diluted share), versus a year-ago loss of $8.4 million (24 cents per share). It ended the period with cash, cash equivalents, restricted cash and marketable securities of about $37 million, and no debt outstanding.

“SeaChange's financial performance in the quarter represents excellent progress in reaching our year-end goals more quickly. Across all metrics - revenues, gross margins and non-GAAP EPS - we outperformed our guidance,” CFO Peter Faubert said.

SeaChange expects Q4 revenues of $20 million to $24 million, and a loss from operations of $0.03 per basic share to operating income of $0.05 per fully diluted share.

For the full fiscal 2018, SeaChange raised expected revenues to the range of $77 million to $81 million, and a narrowed GAAP loss of 14 cents to 22 cents per basic share.