--Reports Lower Revenues, Swings to a Loss
VOD, IPTV and advanced advertising technology provider, SeaChange International, announced Tuesday that it has acquired all the issued share capital of eventIS, a privately owned Eindhoven, Netherlands-based company that provides VOD and linear broadcast software and services to cable and telco operators primarily in Europe. According to SeaChange, in 2008 eventIS generated US GAAP revenues of approximately $13 million and turned a profit. The company has around 70 full-time employees.
Under the terms of the acquisition agreement, SeaChange paid 25.5 million Euros upon the closing of the transaction Tuesday. In addition, the company is obliged to pay 1.2 million Euros in cash to the former eventIS shareholders on the first three anniversary dates following the acquisition, and also to issue 800,000 Euros-worth of shares of restricted SeaChange stock to those shareholders on those dates. The purchase price will also include an additional performance-based component, SeaChange says, related primarily to the achievement of various annual revenue targets for eventIS and SeaChange products and services. The company says that the revenue performance metrics will cover the three-year period, ending January 31st, 2013, with payment upon achievement of the metrics occurring annually.
In other SeaChange news: The company announced results Tuesday for its fiscal second quarter, ended July 31st. Revenues were $46.5 million, compared to $50.7 million for the year-ago quarter, and net losses were $0.4 million, or $0.01 per share, compared to net income of $1.5 million, or $0.05 per share, for the year-ago quarter. The company's earnings press release--in which it also stated that it has finalized the extension of its VOD software subscription agreement with Comcast through 2009 and signed a new software subscription agreement with another major US cable operator--is available here.
