CHEVY CHASE, Md., Aug. 3, 2017 /PRNewswire/ -- Roumell Asset Management, LLC owns roughly 1.2 million shares of SEAC, or approximately 3.3% of SEAC's outstanding shares as of June 2, 2017. In light of our significant equity investment, we think it is critical that the company's Board hear our views. Over the past several years, we've witnessed the company's poor operating results and weakening balance sheet, which in no small part resulted from decisions in which several current board members participated.
The recent vote by shareholders to not re-elect long-time director Tom Olson should impress upon the Board that shareholders are finished with the company's "business as usual" culture. The decisions of the past several years - dismal capital allocation, a disastrous acquisition, and continued operating losses - will no longer be accepted by shareholders. We believe the Board needs further reconstitution. Candidly, individuals who participated in some of these glaringly inept decisions should consider stepping down. It's clear to any independent observer that new blood is needed in the boardroom. Legacy directors should cede their personal agendas to the strong will of the company's shareholders and step aside.
Moreover, the Board should recognize the overwhelming vote of support received by CEO Ed Terino in his recent re-election with over 90% of shareholders voting for his approval. Mr. Terino's decision to streamline operations, exit the Milpitas operation, and build a tech team in Poland have all been excellent decisions. Shareholders trust and believe in Mr. Terino's vision and in his ability to execute that vision.
Despite its missteps, SeaChange clearly possesses compelling technology and valuable customer relationships. SeaChange's installed base of Adrenalin customers, its strong relationship with Liberty Global, its equity investment in Layer3 TV and recent contract wins are enviable assets. It should be obvious to the Board that SeaChange's small, sub-$100 million revenue base is insufficient to warrant remaining an independent going-concern. We have talked to industry participants and believe the demand for SeaChange's assets would provide shareholders a meaningful premium to the company's current share price. We believe Mr. Terino's approach of protecting the company's balance sheet by reducing expenses, while focusing on discrete market opportunities, is the correct one and will ultimately position the company for a successful sale.
SOURCE Roumell Asset Management, LLC