SeaChange International Inc. (NASDAQ: SEAC) stock dropped after the company reported flat quarter-over-quarter revenue for fiscal Q1 2022 ended April 30, 2021. The company reported total revenue of $5.1 million, but backlog revenue was string at $20.1 million at the end of the quarter.
SeaChange started implementing a multi-phased strategy.
During the first quarter, the company implemented and started executing a multi-phased strategy designed to capture market share, enhance the scale and create greater value for shareholders and customers. Equally, the company unveiled a new product marketing strategy for the OTT Streaming Platform, Advanced Advertising platform, and the Cable Video Delivery Platform. The company had a strong balance sheet at the end of the quarter of $21.3 million in cash and equivalents, having decreased operating expenses by 9% in YoY because of efficiency measures.
Robert Pons, the company’s executive chairman, stated that they effectively completed the first part of their strategic roadmap during the fiscal first quarter. The strategy implementation has improved operations, solidified its financial base, and positioned it to drive scale, capture market share, and create even more value for shareholders and customers. He added that the first step of their strategy involved fine-tuning the growth strategy and technology positioning to benefit from video streaming’s tremendous development, which industry analysts predict would reach $140 billion in annual revenues by 2026.
SeaChange marketing the OTT platform to content creators
Equally, SeaChnage has a solid competitive edge thanks to its turnkey enablement platform and advertising insertion tech. Pons said that they are confident in their ability to profit from the streaming industry’s expansion. He added that they are currently pitching the OTT Streaming Platform to content owners and cable operators worldwide, including film and TV makers, looking to create their streaming platforms.