UPDATE: SeaChange Posts Downbeat Q2 Profit, Issues Weak Q3 Forecast

SeaChange International

reported a downbeat second-quarter adjusted profit and issued weak earnings forecast for the third quarter. SeaChange projects Q3 adjusted profit of $0.04 to $0.06 per share on revenue of $37 million to $40 million. However, analysts were estimating earnings of $0.13 per share on revenue of $39.5 million. SeaChange posted a quarterly net loss of $5.3 million, or $0.16 per share, versus a year-ago net income of $787,000, or $0.02 per share. Excluding items, the company earned $0.04 per share, missing analysts' estimates of $0.08 per share. Its total revenue declined 4% to $36.7 million. SeaChange's gross margin dropped 13% durig the quarter. SeaChange shares gained 4.75% to close at $8.60 yesterday.