SeaChange Int'l (SEAC) Announces Corp. Steamlinig; Plans Job Cuts

SeaChange Int'l (NASDAQ: SEAC) announced cost-saving actions taken in the fourth quarter of fiscal year 2015, primarily through a reduction in force, that are anticipated to result in annualized cost savings of approximately $11 million after the actions are completed. The reduction in force has been implemented immediately within the U.S. and, to comply with non-U.S. legal requirements, will be implemented on an international basis over the next several fiscal quarters. These reductions reflect the Company's ability to streamline its activities now that its next generation software products have been brought to market and are being deployed around the globe.

SeaChange's cost reductions come principally from employee headcount reductions of ten percent across its global operations and from a decrease in use of outsourced contract labor. The Company anticipates these actions will result in restructuring and severance charges of approximately $1.3 million in the fourth quarter of fiscal 2015 and possible additional charges in future quarters as the non-U.S. actions are implemented.

"SeaChange has delivered on its long-term strategic commitment and ongoing investment to bring a new generation of software products to market and enable a range of innovative IP-based video services for its customers," said SeaChange CEO Jay Samit. "With Adrenalin and Nucleus established in the marketplace, we can now orient our industry-leading resources toward capturing the lead in additive applications to help our core customers grow revenues and expanding our customer base into new segments such as OTT video services."

SeaChange is scheduled to report its fourth quarter and full fiscal 2015 results in early April. Conference call details will be released in March.

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