Quarterly report pursuant to Section 13 or 15(d)

Nature of Business and Basis of Presentation

Nature of Business and Basis of Presentation
9 Months Ended
Oct. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business and Basis of Presentation
1. Nature of Business and Basis of Presentation

The Company

SeaChange International, Inc. and its consolidated subsidiaries (collectively “SeaChange”, “we”, or the “Company”) is an industry leader in the delivery of multiscreen video. Our products and services facilitate the aggregation, licensing, management and distribution of video and television advertising content to cable television system operators, telecommunications and media companies.

Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of SeaChange International, Inc. and its subsidiaries (“SeaChange” or the “Company”) and are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reports as well as rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany transactions and balances have been eliminated. Certain information and footnote disclosures normally included in financial statements prepared under U.S. GAAP have been condensed or omitted pursuant to such regulations. However, we believe that the disclosures are adequate to make the information presented not misleading. In the opinion of management, the accompanying financial statements include all adjustments necessary to present a fair presentation of the consolidated financial statements for the periods shown. These consolidated financial statements should be read in conjunction with our most recently audited financial statements and related footnotes included in our Annual Report on Form 10-K (“Form 10-K”) as filed with the SEC. The balance sheet data as of January 31, 2015 that is included in this Quarterly Report on Form 10-Q (“Form 10-Q”) was derived from our audited financial statements.

The preparation of these financial statements in conformity with U.S. GAAP, requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Interim results are not necessarily indicative of the operating results for the full fiscal year or any future periods and actual results may differ from our estimates. During the three and nine months ended October 31, 2015, there have been no material changes to our significant accounting policies that were described in our fiscal 2015 Form 10-K, as filed with the SEC.

Note to Update Third Fiscal Quarter Earnings Release

On December 3, 2015, we issued a press release containing our financial results for the three and nine months ended October 31, 2015, which we furnished as an exhibit to a Current Report on Form 8-K. Subsequent to December 3, 2015, we identified a revision to the inventories and accrued expenses line items of our consolidated statements of cash flow to correct the treatment of a non-cash transaction related to the recording of the provision for loss contract. There was no impact to the net cash used in operating activities from continuing operations for the nine months ended October 31, 2015. Below are the line items on the consolidated statements of cash flow that have been adjusted (amounts in thousands):


     December 3, 2015
Press Release
     Q3 Fiscal 2016
Form 10-Q


   $ 472       $ (1,207    $ 1,679   

Accrued expenses

   $ (5,735    $ (4,056    $ (1,679