SeaChange: Layoffs will save $5M annually
Video-on-demand technology vendor SeaChange International (Nasdaq: SEAC) announced a round of layoffs that the company said will reduce its costs by about $5 million annually.
The cuts were announced one week after SeaChange named former Tollgrade executive Michael Bornak as CFO. In December, SeaChange reduced its earnings estimates, and named former Motorola executive Raghu Rau as CEO.
Rau said in a prepared statement that the cuts involve "some facility rationalization." But he didn't detail which facilities SeaChange will close, or how many employees the company will eliminate.
SeaChange sells VOD and advanced advertising software. Its cable MSO customers include Time Warner Cable (NYSE: TWC), Cablevision (NYSE: CVC), Bright House Networks, Rogers Communications (NYSE: RCI), Sunflower Broadband, Mediacom and Verizon (NYSE: VZ).
In other VOD news, SeaChange rival Concurrent said it generated $16.4 million in revenue for its fiscal second quarter of 2012, down $1.5 million from this time last year. Concurrent reported a net loss of $833,000, or 10 cents per share.
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