On June 6, video-on-demand pioneer SeaChange International
- Year-over-year revenue growth of 17% is only mediocre for this next-generation entertainment technology trailblazer. The standard caveats about small companies with lumpy quarterly results do apply, though.
- Smaller losses are nice, but they won't make anybody rich. The quarter was profitable on an EBITDA basis, though just barely, and Earnings Before Including The Bitter Amounts is rarely a reliable measure of operational strength anyway.
- There's nothing wrong with the balance sheet, though. Cash-rich and devoid of debt, SeaChange management has plenty of financial wiggle room for its future plans, and the occasional quarterly letdown won't cause any significant harm.
- The company told us that leading cable provider Comcast
(NASDAQ:CMCSA) just renewed its service contract for another year. Other prominent names on the customer list include Verizon(NYSE:VZ) , Time Warner Cable(NYSE:TWC) , and Disney's(NYSE:DIS) ABC network.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Sales |
$38,844 |
$33,241 |
16.9% |
Net Profit |
($3,650) |
($4,355) |
16.2% |
EPS |
($0.12) |
($0.15) |
20% |
Diluted Shares |
29,389 |
28,468 |
3.2% |
($565) |
($4,435) |
87.3% |
Get back to basics with the income statement.
Margin Checkup
Q1 2008 |
Q1 2007 |
Change* |
|
---|---|---|---|
Gross Margin |
46.5% |
46.3% |
0.3 |
Operating Margin |
(8.1%) |
(18.3%) |
10.2 |
Net Margin |
(9.4%) |
(13.1%) |
3.7 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Cash + ST Invest. |
$43,965 |
$32,841 |
33.9% |
Accounts Rec. |
$34,167 |
$30,291 |
12.8% |
Inventory |
$21,111 |
$21,286 |
(0.8%) |
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Accounts Payable |
$16,953 |
$13,288 |
27.6% |
Long-Term Debt |
$0 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
Free cash flow is a Fool's best friend, but unfortunately, it couldn't be here today. Still, you'll never walk alone in Fooldom.
Related Foolishness:
Disney is a Motley Fool Stock Advisor recommendation.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Anders Bylund was a Disney shareholder but had no other position in any company mentioned. Fool rules are here.