Business enterprise-to-business enterprise (B2B) transactions are notorious for numerous soreness points and paper-laden procedures that, from invoices to paper checks, final result in late, and even misplaced, payments.
Taira Corridor, senior vice president of B2B and strategic innovation at FIS, explained that embedded finance — integrating payments directly into applications, platforms and even invoices — can help modernize and contextualize interactions amongst potential buyers and suppliers, radically altering the way that customers use financial merchandise these days.
Hall mentioned that the economic providers market is likely as a result of “a quick evolution,” accelerated by the COVID-19 pandemic, and embedded finance is now getting to be the “connective tissue” that can improve banks’ finish shopper ordeals.
Embedded finance delivers financial providers at the present issue of presence for the commercial client, irrespective of whether that be a huge corporate or a modest- to medium-sized organization (SMB). This suggests financial services are delivered to the activities the client is already employing, such as program applications, FinTech cellular apps, banking portals and the like.
For the first time, these fiscal products and services will be be in a position to be offered in position — like all the things from opening a company examining account to invoicing, payment acceptance, having to pay expenses and accessing credit rating.
Until eventually lately, organization back again-office solutions have concentrated on operations, workflows and alternatives companies might provide a products or software program geared toward lending or payments.
But with embedded payments, Corridor said that, in particular for scaled-down firms, “I see a long term condition exactly where we have a one pane, which implies that a enterprise customer can be served from all money areas.”
Serving that smaller organization can mean almost everything from seamless onboarding to proactive funding delivers delivers and entry to a pre-authorised line of credit score — all significant factors to energy the SMB encounter and support them better regulate their monetary health.
As Corridor advised PYMNTS, an best remedy “brings all of these capabilities with each other in one particular centralized locale that allows enterprise clients navigate what is most crucial to them in expanding and operating their firms.”
Of system, reconciliation back again into the accounting remedy stays a crucial problem — which necessitates that ideally, B2B firms need to be engaged with verticalized application players and technological know-how platforms.
As an instance, Corridor discussed that FIS serves business clientele at their “point of need to have,” via an integrated experience that is device agnostic and delivers full visibility into cash movement, all the way down to the accounting level, with transparency into lender and transactional knowledge.
Employing the Dashboard for Granular Insight
“A dashboard allows them see in in close proximity to actual-time how their organization is operating,” Hall said. This can be important, provided the truth that lots of corporations have to navigate the realities and troubles of fixed costs coupled with variable income — and they devote 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of their time on financial duties.
Verticalized application platforms and on line portals can give enterprise owners back again significant quantities of time by offering centralized insights. Also, it can enable purchasers to spend their suppliers with the exceptional kind of payment, this sort of as playing cards, to boost income movement or split invoices into numerous payments.
Together the way, reported Hall, embedded finance can “equalize the relationship” concerning potential buyers and suppliers, because of to smart routing, along with discounting choices for speedier payments — and with the supplier equipped to sign their have preferred payment solutions.
When asked about verticals that may advantage most quickly from embedded finance, she pointed to assets management, health care, provider-primarily based firms and a wealth of classic industries populated by scaled-down corporations that need far better visibility into dollars stream.
People tech-enabled possibilities, she said, are beautiful to standard money establishments that seek new chances to carry more powerful sets of providers to their tiny enterprise clients, partnering with FinTechs to electrical power distinct and customizable buyer encounters.
Embedded finance is rapidly coming into B2B, and there is a key prospect to support craft the narrative and provide our consumers holistically across that ecosystem.
——————————
NEW PYMNTS Details: AUTHENTICATING IDENTITIES IN THE Electronic Financial state – DECEMBER 2021
About:Much more than 50 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of U.S. individuals imagine biometric authentication approaches are faster, a lot more effortless and extra honest than passwords or PINs — so why are a lot less than 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} using them? PYMNTS, in collaboration with Mitek, surveyed a lot more than 2,200 buyers to superior define this notion as opposed to use hole and detect approaches companies can boost use.
Yearn Finance (YFI) emerged as just one of the best performers in the crypto marketplace this 7 days, rallying by more than 46{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in just four times to achieve a two-week significant over $29,100.
YFI/USD day-to-day price chart showcasing its 4-working day bull operate. Supply: TradingView
The gains surfaced mostly as Yearn Finance uncovered that it has been purchasing again YFI en masse because November in response to a community vote to increase the YFI token’s economics. The decentralized asset administration system purchased 282.40 YFI at an average rate of $26,651 for every token — a overall of over $7.50 million.
On top of that, Yearn Finance noted that it has a lot more than $45 million saved in its Treasury and has “more powerful than ever” earnings. As a end result, it would — in the long run — could deploy its cash flow to acquire back additional YFI tokens.
Now that the Treasury has far more than $45 million saved up and with earnings stronger than ever, hope a great deal more aggressive buybacks. What will you do anon?
Adam Cochran, a associate with activist enterprise fund Cinneamhain Ventures, pointed out that Yearn Finance will make about $100 million per yr in just fees collected from Vaults, its flagship sensible personal savings account support that maximizes the benefit accrual of deposited electronic assets.
The analyst even more highlighted that Yearn had captivated additional than $5 billion in overall value locked (TVL) in opposition to a sector capitalization of $781 million. That currently being said, the Yearn Finance protocol earns a person of the optimum costs for every TVL, providing it enough liquidity to maintain its token buyback system in the long term.
The overall benefit locked inside of Yearn Finance vaults. Supply: DeFi Llama
YFI undervalued
Cochran further when compared Yearn Finance’s income-to-sales (P/S) and financial gain-to-earnings (P/E) ratios with a further “payout-dependent” protocol Curve, highlighting that YFI remained undervalued in contrast to Curve’s staking token, CRV.
In element, the P/S ratio signifies that how much traders are ready to pay out for a company’s inventory centered on its sales per share. The P/E ratio demonstrates investors’ determination to get a stock based on the company’s earlier or foreseeable future earnings. In both circumstances, a lower reading suggests an undervalued inventory.
“Their P/S ratio is 3.6x and their P/E is 7.9x,” wrote Cochran about Yearn Finance, introducing:
“Those figures for other payout-based protocols like Curve are 71.9x and 143x, respectively. So all over occasions the several valuations for someone who has fees on.”
7/8
Outside the house of holding $ETH, $YFI is truly my best decide on for all of 2022.
I am stupidly extended on Yearn the two in phrases of my funds but also investing my time as I hope to shell out a large amount of time setting up listed here.
Though Yearn Finance’s selection to purchase again around $7.50 million really worth of YFI aided boost its charges, the cryptocurrency also been given an additional upside strengthen from a historic accumulation array.
The location in between $18,500 and $20,000 has been attracting buyers on each YFI cost dip because November 2020. It also held up against bears in September 2020, foremost to a value rebound towards $40,000.
YFI/USD 3-working day selling price chart that includes Fakeout assortment. Source: TradingView
If YFI holds the $18,500–$20,000 array as guidance, and more rises earlier mentioned $24,580, or the .786 Fib line of the Fibonacci retracement graph in the chart previously mentioned, its subsequent upside concentrate on will be $40,000, a degree coinciding with the .618 Fib line.
Linked: As Yearn.Finance’s generate vaults grow, ‘crop’ jobs determine boundaries
Well known crypto trader Cuban noted that YFI’s completely-diluted valuation (FDV) is underneath $1 billion, which is “prison contemplating the potential and the workforce guiding.” He included:
“Macro crypto smart, I believe that we have a big Q1 coming up essentially and a great deal of folks gonna be left on the sidelines immediately after de-risking EOY.”
The sights and thoughts expressed listed here are only all those of the author and do not necessarily mirror the views of Cointelegraph.com. Every expenditure and trading go entails threat, you should perform your individual research when creating a choice.
The Senate on Wednesday overwhelmingly passed a $768 billion defense policy bill that directs the president to create a “grand strategy” to address global economic and military threats posed by China.
That vote came as news emerged that U.S. military commanders have created a software tool designed to predict how China will react to U.S. activities in the area, such as U.S. officials’ visits to Taiwan.
In a new interview taped Monday, billionaire hedge fund titan Ray Dalio said a military confrontation between the U.S. and China is unlikely for now. However, he added that if a U.S-China war does break out, it will likely be over Taiwan, a disputed entity roughly 100 miles off the coast of Southeastern China.
“Well, I think if there’s going to be a military war issue, it is likely to be around Taiwan,” Dalio told Yahoo Finance’s editor-in-chief, Andy Serwer. Later, Dalio added, “Watch what’s going on closely with Taiwan, and you’ll see the straws in the wind.”
While Taiwan has a democratically elected government and a “robust unofficial relationship with the U.S.,” the United Nations doesn’t recognize it as an independent country. As Serwer noted in a column for Yahoo Finance last month, Taiwan has been in political limbo since the Chinese Civil War nearly three-quarters of a century ago. But more recently, tensions between the U.S. and China over Taiwan have flared up.
People wear a face mask to prevent the spread of the coronavirus disease (COVID-19) while passing a night market in Taipei, Taiwan, August 6, 2020. REUTERS/Ann Wang
Communist China, for its part, insists that Taiwan is a province of the mainland. The country has repeatedly entered Taiwan’s air defense zone in the past year, and in October, China condemned the U.S. and Canada for trying to “stir up trouble” by sending warships through the Taiwan Strait.
Speaking to Yahoo Finance, Dalio described the status of Taiwan and its potential to provoke military action between the U.S. and China this way: “It’s an important issue that might be, could be fought over. I think that you watch it.”
This was far from the first time Dalio has commented on China tensions. He’s faced backlash over the fact that his hedge fund, Bridgewater Associates, has investments in China — particularly after an interview with CNBC last month where he seemingly likened the country’s autocratic government to a “stern parent.” In a Dec. 5 LinkedIn post clarifying the statement, he said that view was not his own, but rather, he was explaining what a Chinese leader told him about the country’s approach to governing.
Dalio went on to note that Bridgewater invests in about 40 countries, including China, and that it relies on guidance from regulators in those countries and in the U.S. However, he added: “Having said all this, what I think and what Bridgewater does are of minuscule importance relative to the rapidly growing risk of U.S. war with China due to misunderstandings and inclinations to fight …”
“The population of China has four times that of the United States,” Dalio noted. “So if it has an average income of half the United States, it will be twice as large as the United States.”
While China may someday become a greater world power than the U.S., its economy has suffered amid the pandemic, the country’s regulatory crackdown on Chinese companies, and a prolonged property downturn sparked in part by the downfall of mega-developer Evergrande.
For his part, Dalio stressed that the U.S. should turn its focus toward itself. “If we do the right things, to be strong, so that we are stronger than any opposition in the world,” he said, “we won’t have a problem.”
Erin Fuchs is deputy managing editor at Yahoo Finance.
Read the latest financial and business news from Yahoo Finance
Continued Operating Momentum, with Revenues Up 9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Sequentially and 44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Year-over-Year
Signed Multi-Million-Dollar Contract Renewal with Major U.S. Multiple-System-Operator
Re-alignment in Progress, with Continued Execution on Core Competencies in Video & Advertising, Shifting More Resources to Streaming Products
BOSTON, Dec. 14, 2021 (GLOBE NEWSWIRE) — SeaChange International, Inc. (NASDAQ: SEAC), a leading provider of video delivery, advertising, and emerging streaming platforms, today reported financial and operational results for the fiscal third quarter ended October 31, 2021.
Fiscal Third Quarter 2022 and Recent Highlights
Secured multi-million-dollar contract renewal with one of the largest multiple-system-operators in the United States, demonstrating ability to successfully monetize long-term relationships.
Appointed veteran TMT executive Peter D. Aquino as President and CEO, solidifying senior leadership team, and initiating strategic initiatives.
Generated 9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} sequential revenue growth and 44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year, driven primarily by signed renewals, and upsells from existing customers.
Decreased operating expenses by 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} sequentially substantially due to ongoing efficiency measures and approaching break-even and company profitability objectives.
Ended quarter with solid balance sheet, including $17.6 million in cash and cash equivalents and no debt.
Management Commentary
“Our financial results in the third quarter demonstrate our continued commitment to our multi-pronged strategy towards revenue growth, increased profitability, and strategic objectives,” said SeaChange’s President and Chief Executive Officer, Peter D. Aquino. “My first 90 days included a deep dive into the operations, management objectives, and growth products that we are ‘leaning’ into to accelerate our transformation and provide customers with leading-edge software to drive their streaming services. I am very excited about our upside to play a leading role in enabling our customers to capture this new demand.”
Chris Klimmer, Senior Vice President and Chief Revenue Officer at SeaChange, commented: “SeaChange operates in massive markets with large and growing total addressable markets (TAMs) where we are leveraging our deep expertise, strong relationships and long operating history to capitalize on these opportunities. Our pipeline is growing, and we are encouraged by the progress we are making in each of our core operating markets. We are effectively monetizing longstanding Tier 1 relationships in cable, transitioning companies to high-upside revenue sharing models in advertising, creating new offerings through our streaming platform StreamVid, as well as introducing new innovations to support content monetization on Connected TV platforms through FAST channels, a product initiative that we branded Xstream.”
Aquino added: “SeaChange is in an increasingly strong operating position with $17.6 million in cash and no debt, a lean cost structure and growing revenue. My thorough assessment of our business not only reaffirmed but strengthened my belief that our company’s technology platform has significant value, which we are seeking to maximize through both organic and inorganic growth opportunities. Longer term, we believe our continued execution on our strategic plan will drive scale, capture market share, and create even greater value for both our customers and stockholders.”
Fiscal Third Quarter 2022 Financial Results
Total revenue was $7.2 million, compared to $6.5 million in the second quarter of fiscal 2022. Product revenue was $3.5 million (or 49{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of total revenue), an improvement compared to $2.7 million (or 41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of total revenue) in the second quarter of fiscal 2022. Service revenue was $3.6 million (or 51{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of total revenue) compared to $3.8 million (or 59{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of total revenue) in the second quarter of fiscal 2022.
Gross profit was $3.7 million (or 52{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of total revenue), compared to $4.1 million (or 63{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of total revenue) in the second quarter of fiscal 2022.
Total non-GAAP operating expenses were $5.1 million, an improvement compared to non-GAAP operating expenses of $5.4 million in the second quarter of fiscal 2022.
GAAP loss from operations totaled $2.0 million, an improvement compared to a GAAP loss from operations of $2.5 million in the second quarter of fiscal 2022.
GAAP net loss totaled $2.1 million, or $(0.04) per basic share, a decrease from GAAP net income of $0.2 million, or $0.00 per fully diluted share, in the second quarter of fiscal 2022.
Non-GAAP loss from operations totaled $1.4 million, or $(0.03) per basic share, compared to non-GAAP loss from operations of $1.3 million, or $(0.03) per basic share, in the second quarter of fiscal 2022.
Ended the quarter with cash and cash equivalents of $17.6 million and no debt.
Conference Call SeaChange will host a conference call today (December 14, 2021) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these results.
SeaChange executive management will host the call, followed by a question-and-answer period.
U.S. dial-in number: 877-407-8037 International number: 201-689-8037 Meeting Number: 13725442
Please call the conference telephone number approximately 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of SeaChange’s website.
About SeaChange International, Inc. SeaChange International (NASDAQ: SEAC) is a trusted provider of streaming video services, cable TV broadcast platforms and advanced advertising insertion technology. The company partners with operators, broadcasters and content owners worldwide to help them deliver the highest quality video experience to consumers. Its StreamVid premium streaming platform enables operators and content owners to cost-effectively launch and grow a direct-to-consumer service to manage, curate and monetize their content as well as form a direct relationship with their subscribers. SeaChange enjoys a rich heritage of nearly three decades of video hardware, software and advertising technology.
Safe Harbor Provision Certain statements in this press release may constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, as amended to date. Forward-looking statements can be identified by words such as “may,” “might,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “seeks,” “intends,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. Examples of forward-looking statements include, among others, statements we make regarding the Company’s ability to grow its revenue pipeline, execute its strategic plan and the benefits of its strategic plan, including driving scale, capturing market share, and creating even greater value for both our customers and stockholders; and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations, and assumptions of the management of the Company and are subject to a number of known and unknown risks and significant business, economic and competitive uncertainties that could cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. Risks that could cause actual results to differ include, but are not limited to: the impact of COVID-19 on our business and the economies in which we operate; the continued spending by the Company’s customers on video solutions and services and expenses we may incur in fulfilling customer arrangements; the manner in which the multiscreen video and over-the-top markets develop; the Company’s ability to compete in the software marketplace; the loss of or reduction in demand, or the return of product, by one of the Company’s large customers or the failure of revenue acceptance criteria in a given fiscal quarter; the cancellation or deferral of purchases of the Company’s products; any decline in demand or average selling prices for our products and services; failure to achieve our financial forecasts due to inaccurate sales forecasts or other factors, including due to expenses we may incur in fulfilling customer arrangements; the impact of our cost-savings and restructuring programs; the Company’s ability to manage its growth; the risks associated with international operations; the ability of the Company to use its net operating losses, including the potential impact on these losses resulting from the Coronavirus Aid, Relief, and Economic Security (CARES) Act; the impact of changes in the market on the value of our investments; changes in the regulatory environment; and other risks that are described in further detail in the Company’s reports filed from time to time with the Securities and Exchange Commission (SEC), which are available at the SEC’s website at http://www.sec.gov, including but not limited to, such information appearing under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K. Any forward-looking statements should be considered in light of those risk factors. The Company cautions readers that such forward-looking statements speak only as of the date they are made. The Company disclaims any intent or obligation to publicly update or revise any such forward-looking statements to reflect any change in Company expectations or future events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results may differ from those set forth in such forward-looking statements.
SeaChange Contact: Matt Glover and Jeff Grampp, CFA Gateway Group, Inc. 949-574-3860 SEAC@gatewayir.com
SeaChange International, Inc. Condensed Consolidated Balance Sheets (Unaudited, amounts in thousands)
October 31, 2021
January 31, 2021
Assets
Cash and cash equivalents
$
17,551
$
5,856
Marketable securities
—
252
Accounts and other receivables, net
5,374
6,050
Unbilled receivables
15,146
15,699
Prepaid expenses and other current assets
2,553
4,372
Property and equipment, net
512
605
Goodwill and intangible assets, net
10,479
11,849
Other assets
2,900
5,725
Total assets
$
54,515
$
50,408
Liabilities and Stockholders’ Equity
Accounts payable and other liabilities
$
6,861
$
10,172
Deferred revenue
3,009
5,394
Deferred tax liabilities and income taxes payable
784
888
Promissory note
—
2,413
Total liabilities
10,654
18,867
Total stockholders’ equity
43,861
31,541
Total liabilities and stockholders’ equity
$
54,515
$
50,408
SeaChange International, Inc. Consolidated Statements of Operations (Unaudited, amounts in thousands, except per share data)
For the Three Months Ended October 31,
For the Nine Months Ended October 31,
2021
2020
2021
2020
Revenue:
Product
$
3,511
$
1,048
$
7,840
$
5,212
Service
3,640
3,918
10,903
11,664
Total revenue
7,151
4,966
18,743
16,876
Cost of revenue:
Product
1,609
435
2,708
2,803
Service
1,830
1,755
5,375
6,974
Total cost of revenue
3,439
2,190
8,083
9,777
Gross profit
3,712
2,776
10,660
7,099
Operating expenses:
Research and development
2,090
3,024
6,971
10,550
Selling and marketing
1,449
1,636
4,472
5,490
General and administrative
2,110
2,636
6,897
7,057
Severance and restructuring costs
75
53
646
1,082
Total operating expenses
5,724
7,349
18,986
24,179
Loss from operations
(2,012
)
(4,573
)
(8,326
)
(17,080
)
Other expense, net
(67
)
(499
)
(83
)
(334
)
Gain on extinguishment of debt
—
—
2,440
—
Loss before income taxes
(2,079
)
(5,072
)
(5,969
)
(17,414
)
Income tax provision (benefit)
26
45
(23
)
(21
)
Net loss
$
(2,105
)
$
(5,117
)
$
(5,946
)
$
(17,393
)
Net loss per share, basic
$
(0.04
)
$
(0.14
)
$
(0.13
)
$
(0.46
)
Net loss per share, diluted
$
(0.04
)
$
(0.14
)
$
(0.13
)
$
(0.46
)
Weighted average common shares outstanding, basic
49,040
37,556
46,334
37,436
Weighted average common shares outstanding, diluted
49,040
37,556
46,334
37,436
Comprehensive loss:
Net loss
$
(2,105
)
$
(5,117
)
$
(5,946
)
$
(17,393
)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment
(291
)
(143
)
(649
)
1,498
Unrealized (losses) gains on marketable securities
—
(33
)
1
(37
)
Total other comprehensive (loss) income
(291
)
(176
)
(648
)
1,461
Comprehensive loss
$
(2,396
)
$
(5,293
)
$
(6,594
)
$
(15,932
)
SeaChange International, Inc. Consolidated Statements of Cash Flows (Unaudited, amounts in thousands)
For the Nine Months Ended October 31,
2021
2020
Cash flows from operating activities:
Net loss
$
(5,946
)
$
(17,393
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense
1,098
1,105
Loss on disposal of fixed assets
75
—
Gain on write-off of operating lease right-of-use assets and liabilities related to termination
(328
)
—
Gain on extinguishment of debt
(2,440
)
—
Recovery of bad debts
(135
)
(216
)
Stock-based compensation expense
1,315
1,054
Deferred income taxes
—
246
Realized and unrealized foreign currency transaction loss
399
1,498
Other
1
(26
)
Changes in operating assets and liabilities:
Accounts receivable
709
7,084
Unbilled receivables
397
4,274
Prepaid expenses and other current assets and other assets
2,007
539
Accounts payable
(93
)
(1,242
)
Accrued expenses and other liabilities
(230
)
(3,886
)
Deferred revenue
(2,329
)
(2,358
)
Net cash used in operating activities
(5,500
)
(9,321
)
Cash flows from investing activities:
Purchases of property and equipment
(78
)
(311
)
Proceeds from sales and maturities of marketable securities
252
3,576
Net cash provided by investing activities
174
3,265
Cash flows from financing activities:
Proceeds from stock option exercises
137
119
Proceeds from employee stock purchase plan
—
18
Proceeds from issuance of common stock, net of issuance costs
17,462
—
Repurchases of common stock
—
(80
)
Proceeds from the Paycheck Protection Program
—
2,413
Net cash provided by financing activities
17,599
2,470
Effect of exchange rate on cash, cash equivalents and restricted cash
(467
)
(587
)
Net increase (decrease) in cash, cash equivalents and restricted cash
11,806
(4,173
)
Cash, cash equivalents and restricted cash at beginning of period
6,084
9,297
Cash, cash equivalents and restricted cash at end of period
$
17,890
$
5,124
Supplemental disclosure of cash flow information
Income taxes paid
$
132
$
196
Non-cash activities:
Right-of-use assets obtained in exchange for lease obligations
$
—
$
987
Purchases of property and equipment included in accounts payable
$
72
$
—
Non-GAAP Measures We define non-GAAP loss from operations as U.S. GAAP net loss plus stock-based compensation expenses, amortization of intangible assets, severance and restructuring costs, gain on extinguishment of debt, other expense, net, and income tax (provision) benefit. We discuss non-GAAP loss from operations, including on a per share basis, in our quarterly earnings releases and certain other communications, as we believe non-GAAP operating loss from operations is an important measure that is not calculated according to U.S. GAAP. We use non-GAAP loss from operations in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors, determining a component of bonus compensation for executive officers and other key employees based on operating performance, and evaluating short-term and long-term operating trends in our operations. We believe that the non-GAAP loss from operations financial measure assists in providing an enhanced understanding of our underlying operational measures to manage the business, to evaluate performance compared to prior periods and the marketplace, and to establish operational goals. We believe that the non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making.
Non-GAAP loss from operations is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with U.S. GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the financial adjustments described above in arriving at non-GAAP loss from operations and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring. The following table includes the reconciliations of our U.S. GAAP loss from operations, the most directly comparable U.S. GAAP financial measure, to our non-GAAP loss from operations for the three and nine months ended October 31, 2021.
SeaChange International, Inc. Fiscal Year Reconciliation of GAAP to Non-GAAP (Unaudited, amounts in thousands, except per share data)
For the Three Months Ended October 31,
For the Nine Months Ended October 31,
2021
2020
2021
2020
(Amounts in thousands)
(Amounts in thousands)
GAAP net loss
$
(2,105
)
$
(5,117
)
$
(5,946
)
$
(17,393
)
Other expense, net
(67
)
(499
)
(83
)
(334
)
Gain on extinguishment of debt
—
—
2,440
—
Income tax (provision) benefit
(26
)
(45
)
23
21
GAAP loss from operations
$
(2,012
)
$
(4,573
)
$
(8,326
)
$
(17,080
)
Amortization of intangible assets
304
308
930
891
Stock-based compensation
274
437
1,315
1,054
Severance and restructuring costs
75
53
646
1,082
Non-GAAP loss from operations
$
(1,359
)
$
(3,775
)
$
(5,435
)
$
(14,053
)
Non-GAAP loss from operations, basic per share
(0.03
)
(0.10
)
(0.12
)
(0.38
)
Non-GAAP loss from operations, diluted per share
(0.03
)
(0.10
)
(0.12
)
(0.38
)
Weighted average common shares outstanding, basic per share
49,040
37,556
46,334
37,436
Weighted average common shares outstanding, diluted per share
49,040
37,556
46,334
37,436
SeaChange International, Inc. Supplemental Schedule – Revenue Breakout (Unaudited, amounts in thousands)
Stock futures edged up Tuesday evening as investors looked ahead to the Federal Reserve’s final monetary policy decision of 2021 and weighed the central bank’s potential response to persistent inflationary pressures.
Contracts on the S&P 500 ticked higher. The blue-chip index closed out Tuesday’s session in the red for a second straight session, with technology stocks leading the way lower. The Nasdaq ended the session down by more than 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
All eyes on Wednesday will be on the Federal Reserve’s monetary policy statement and press conference by Federal Reserve Chair Jerome Powell. Many market participants expect these will set the stage for the Fed to speed the withdrawal of its crisis-era stimulus programs, with the firming economic recovery and soaring inflation suggesting the central bank has room for a more hawkish tilt to policy. Last week’s Consumer Price Index showed the fastest surge in U.S. consumer prices since 1982 on a year-over-year basis. And on Tuesday, the U.S. Producer Price Index jumped by the most on record at a 9.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year increase.
Specifically, many investors anticipate the Fed will ramp up the rate of tapering of its asset-purchasing program, which took place at a rate of $120 billion per month in combined Treasuries and agency mortgage-backed securities from the start of the pandemic through November. Last month, the Fed began dialing back these purchases by $15 billion, and announced another $15 billion reduction for December.
“We don’t think that the Fed is really going to have any surprises for the markets tomorrow. They’re probably going to announce that they’re going to … accelerate tapering, and that they’ll probably finish that by March. But we think that they’re going to leave themselves lots flexibility around raising interest rates,” Tracie McMillion, Wells Fargo Investment Institute head of global asset allocation strategy, told Yahoo Finance Live on Tuesday. She added she expects just one interest rate hike from the Federal Reserve in the second half of next year.
Other pundits, however, expect an earlier liftoff on interest rates, which maybe be reflected in the Federal Open Market Committee’s (FOMC) updated Summary of Economic Projections on Wednesday.
“The announcement of faster tapering after [Wednesday’s] FOMC meeting is a done deal; we’d be astonished by anything other than a plan to complete asset purchases by the end of March at the latest,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a note on Tuesday. He expects the Fed to stick to its prior plan of purchasing $90 billion in its asset-purchase program this month, before doubling the rate of tapering from its current $15 billion per month starting in January.
“That would mean purchases drop to $60 billion in January, $30 billion in February, and zero in March, leaving the door open to a rate hike that month if the inflation outlook has not improved, via a clear and sustained increase in the labor force participation rate,” he added.
A number of strategists noted the trading activity in recent sessions and weeks has reflected the market pricing of a more hawkish Fed. Software and other growth names were some of the biggest laggards in the major indexes during Tuesday’s session.
“When you have an anticipation of higher interest rates, growth stocks or long-duration growth stocks certainly get hit the hardest,” Art Hogan, national chief market strategist, told Yahoo Finance. Live on Tuesday. “When you do that net present value calculation with a higher interest rate, that implied multiple or ascribed multiple to growth names comes in. So a lot of that’s been priced in. When you think about some of those real growth-y names and momentum names and risk assets, they’ve seen a lot of carnage.”
“What the market is trying to tell us here is that when you set your asset allocation plan for next year, you want to have a barbell approach with growth on one side — you want to have those growth names that are actually valued at a multiple to earnings, not a multiple to revenues or a multiple to cash flows or a multiple to sales,” he added. “We anticipate 2022 is going to be very much like 2021, where you really want to have a balance between growth and value.”
—
6:24 p.m. ET Tuesday: Stock futures edge up ahead of Fed decision
Here were the main moves in markets as the overnight session kicked off on Tuesday:
S&P 500 futures (ES=F): +2.25 points (+0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,639.25
Dow futures (YM=F): +25 points (+0.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,577.00
Nasdaq futures (NQ=F): +12.25 points (+0.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,937.00
NEW YORK, NEW YORK – DECEMBER 13: Traders work on the floor of the New York Stock Exchange (NYSE) on December 13, 2021 in New York City. As investors are still concerned about rising prices due to inflation, the Dow Jones Industrial Average dropped 175 points in Monday morning trading. (Photo by Spencer Platt/Getty Images)
Stocks traded lower on Monday, with the S&P 500 dipping below last week’s record level as traders awaited a Federal Reserve monetary policy decision later this week.
The three major indexes declined. U.S. crude oil prices steadied trade near $71 per barrel. Treasury yields fell across the long end of the curve, and the benchmark 10-year yield held below 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Bitcoin prices declined to trade below $47,000.
Investors’ focus this week will be on the Federal Reserve’s December policy-setting meeting, which will take place between Tuesday and Wednesday. A new monetary policy statement and press conference with Fed Chair Jerome Powell are due mid-week, alongside the Fed’s updated Summary of Economic Projections charting out individual members’ outlooks for economic conditions and interest rates. Policymakers for other central banks are also set to meet this week, including those from the Bank of England and European Central Bank.
The Fed’s decision has taken on additional significance as the market attempts to predict how policymakers will weigh persistently elevated inflation against the specter of a fresh wave of the coronavirus with the newly discovered Omicron variant. U.S. inflation rose at its fastest pace since 1982 in November, last week’s Consumer Price Index (CPI) showed, pointing to the ongoing mismatch between supply and demand in the recovering economy.
But against the backdrop of inflation and a firming economic recovery, the Fed is expected to announce an acceleration of its asset purchase tapering process at the close of this week’s meeting, dialing back one of the central bank’s key tools that had helped support the economy during the pandemic.
“Both equity and fixed-income markets appear to be pricing the coming Fed tightening,” David Kostin, Goldman Sachs chief U.S. equity strategist, wrote in a note.
The firm expects the Fed to double the pace of tapering at this week’s meeting, bringing the Fed’s monthly drawdown of Treasuries and agency mortgage-backed securities purchases to $30 billion per month versus the current rate of $15 billion.
“Historical experience suggest equity valuations are typically flat around the first Fed hike,” Kostin added. “Moreover, some of the longest duration and highest valuation stocks plunged during the past month, suggesting that equity market pricing of Fed tightening is also under way.”
—
4:05 p.m. ET: Stocks end lower: S&P 500 drops 0.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to pull back from record high, Nasdaq sheds 1.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Here were the main moves in markets as of 4:05 p.m. ET:
S&P 500 (^GSPC): -43.04 (-0.91{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,668.98
Dow (^DJI): -320.04 (-0.89{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,650.95
Nasdaq (^IXIC): -217.32 (-1.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,413.28
Crude (CL=F): -$0.44 (-0.61{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $71.23 a barrel
Gold (GC=F): +$2.70 (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,787.50 per ounce
10-year Treasury (^TNX): -6.5 bps to yield 1.4240{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
—
11:17 a.m. ET: USPS expects 2.3 billion pieces of mail to be delivered this week in busiest of the season
The U.S. Postal Service announced Monday that it expects 2.3 billion pieces of mail to be delivered during the week of Dec. 13, underscoring the heightened demand for shopping and shipping this holiday season. The USPS estimate includes both greeting cards and packages.
“Since Dec. 6, customer traffic at all Post Office locations has been steadily increasing,” the USPS said in a press statement. “But this week is expected to be the busiest week of the holiday mailing and shipping season.”
Between Thanksgiving and New Year’s Day, an estimated 850 million to 950 million packages are expected to be delivered in total, USPS said.
—
10:03 a.m. ET: Apple hits intraday record, closes in on $3 trillion market capitalization
Shares of Apple gained in intraday trading, bucking the downward trend of the broader market to come within striking distance of a $3 trillion market capitalization. At session highs, shares of Apple were trading at $181.80, or about 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the share price that would bring its market cap to the $3 trillion milestone.
The iPhone-maker had become the first U.S. company ever to reach a $2 trillion market cap in August 2020. Peer technology giant Microsoft has also since rocketed to a more than $2 trillion valuation.
Shares of Apple have gained more than 36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} so far for the year-to-date, outperforming the S&P 500’s about 24.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} gain over that period. This comes on top of Apple’s 81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} gain in 2020.
—
9:33 a.m. ET: Stocks open slightly lower
Here’s where markets were trading just after the opening bell:
S&P 500 (^GSPC): -5.26 (-0.11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,706.76
Dow (^DJI): -5.26 (-0.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,943.90
Nasdaq (^IXIC): -35.94 (-0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,591.80
Crude (CL=F): -$0.44 (-0.61{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $71.23 a barrel
Gold (GC=F): +$1.90 (+0.11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,786.70 per ounce
10-year Treasury (^TNX): -4.1 bps to yield 1.448{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
—
7:44 a.m. ET Monday: Stock futures head higher
Here were the main moves in markets ahead of the opening bell on Monday:
S&P 500 futures (ES=F): +10 points (+0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,721.00
Dow futures (YM=F): +18 points (+0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,985.00
Nasdaq futures (NQ=F): +64.5 points (+0.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,394.25
Crude (CL=F): -$0.69 (-0.96{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $70.98 a barrel
Gold (GC=F): +$5.60 (+0.31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,790.40 per ounce
10-year Treasury (^TNX): -1.7 bps to yield 1.472{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
NEW YORK, NEW YORK – DECEMBER 08: Traders work on the floor of the New York Stock Exchange (NYSE) on December 08, 2021 in New York City. Following news from the pharmaceutical company Pfizer on the effectiveness of its vaccine against the Omicron COVID-19 variant, the Dow Jones Industrial Average rallied nearly 100 points in morning trading on Wednesday. (Photo by Spencer Platt/Getty Images)
