On March 14, video-on-demand provisioner SeaChange International
- Revenue growth is coming along nicely, though you might expect a hastier rise from a small company in such an immature, high-stakes industry.
- Sales and earnings for a tiny company like this one can be lumpy, and it's often a mistake to read too much into a single quarter's numbers. On that note, management recited a litany of orders that arrived after the quarter's end. Sometimes, it's just a matter of timing.
- That bumpy track should smooth out somewhat in a year or two, as the company diversifies its customer base. Its far-and-away biggest client to date has been Comcast
(NASDAQ:CMCSA) , and that company's share of SeaChange revenues has declined from more 50% three years ago to 25% a year ago. - When we get the company's 10-K statement -- probably around mid-May -- we'll see the current Comcast share. We'll also get a cash flow statement explaining exactly where that fresh cash came from, after a year of steady quarterly losses, only moderate share dilution, and still no debt on the books.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$40,073 |
$33,236 |
20.6% |
|
Net Profit |
($3,745) |
($3,073) |
(21.9%) |
|
EPS |
($0.13) |
($0.11) |
(18.2%) |
|
Diluted Shares |
$29,235 |
$28,438 |
2.8% |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2007 |
Q4 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
42.6% |
44.6% |
(2.0) |
|
Operating Margin |
(12.6%) |
(12.0%) |
(0.6) |
|
Net Margin |
(9.4%) |
(9.3%) |
(0.1) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$42,410 |
$36,190 |
17.2% |
|
Accounts Rec. |
$34,416 |
$34,472 |
(0.2%) |
|
Inventory |
$19,350 |
$19,299 |
0.3% |
|
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$15,887 |
$26,410 |
(39.8%) |
|
Long-Term Debt |
$0 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
We don't have a cash flow at this point, and have to wait for the 10-K filing. Darn it.
Free cash flow is a Fool's best friend.
Related Foolishness:
- Fool on the Street: Comcast Clued In
- SeaChange Leads the TV Revolution
- Cisco On Demand
- Foolish Fundamentals: The Income Statement
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.
SeaChange isn't exactly a Motley Fool Rule Breaker, but the company certainly operates on the bleeding edge of tomorrow's entertainment technology. Find more companies like that with a free 30-day trial pass to our ultimate growth stock newsletter.
At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.
