Digital video provider
said Wednesday night that it's delaying its first-quarter earnings release after losing a patent infringement case to nCube Corp.
In a press release, SeaChange said that even though it "disagrees with the jury veridict and is reviewing all its options in the litigation," accounting rules still require the company to disclose material changes the verdict will make in the company's first-quarter results.
SeaChange expects its revenue, which will not be affected by the verdict, to be $33.7 million, a 12% increase from last year's $30.1 million. Video-on-demand revenue grew 40% to $16.1 million. The company said it shipped 60,000 video streamgs for residential VOD systems in the quarter, bringing its total to 226,000.
A jury on Wednesday awarded nCube damages of $2 million in addition to a royalty payment equal to 7% of total sales for video-on-demand systems since the beginning of February for the patent violations.
SeaChange expects to release its first-quarter earnings early next week.
Shares of SeaChange were plunging 16.3% to $8.70 in premarket trading after closing at $10.39 Wednesday.