SeaChange International (NAS: SEAC) reported earnings on June 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q1), SeaChange International whiffed on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share grew.
Gross margin improved, operating margin dropped, and net margin dropped.
SeaChange International reported revenue of $36.6 million. The three analysts polled by S&P Capital IQ expected to see sales of $41.7 million on the same basis. GAAP reported sales were 30% lower than the prior-year quarter's $52.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The three earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were -$0.60 for Q1 versus -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.0%, 720 basis points better than the prior-year quarter. Operating margin was -3.1%, 150 basis points worse than the prior-year quarter. Net margin was -53.5%, 5,280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $39.8 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $170.5 million. The average EPS estimate is $0.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 158 members out of 165 rating the stock outperform, and seven members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give SeaChange International a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SeaChange International is outperform, with an average price target of $10.50.
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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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