Shares of SeaChange International Inc. SEAC, -41.90% plunged 44% toward a record low Tuesday, putting them on track for the biggest one-day selloff since they went public about 22 years ago, after the multi-screen video services company warned that it will report a wider-than-expected second-quarter loss and lower revenue, citing a number of deals that were delayed to the third quarter. The company said before the open that it expected a net per-share loss from operations of 22 cents to 20 cents, compared with previous guidance of a loss of 8-to-4 cents a share. Revenue is now expected to be $11.5 million to $12.5 million, compared with previous guidance of $17 million to $19 million, and with the FactSet consensus of $18.3 million. The company said customers delayed purchasing decisions to evaluate the software-as-a-service model of new products that were introduced. The cash position on July 31 was $35 million, down from $49 million as of April 30. Separately, SeaChange said it has determined the results represent "a triggering event" requiring it to perform a valuation of its goodwill and other long-lived assets, which could impact net EPS. SeaChange's stock has dropped 59% year to date while the S&P 500 SPX, +0.46% has gained 7.3%.
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