SeaChange International, Inc. develops, markets and supports products to manage, store and distribute digital video for television operators, broadcast and telecommunications companies. The company's products utilize its proprietary distributed application software and standard industry components to automate the management and distribution of short- andlong-form video streams including advertisements, movies, news updates and other video programming requiring precise, accurate and continuous execution. Seachange International Inc. has a market cap of $179.3 million; its shares were traded at around $5.81 with a P/E ratio of 30.6 and P/S ratio of 0.9. Highlight of Business Operations: Software Revenues. Revenues from our Software segment for the three months ended October 31, 2009 decreased $1.8 million, or a 5% decrease compared to the three months ended October 31, 2008. The 16% or $3.7 million decrease in the software products revenues was due to lower software licensing revenue from our Advertising products of $3.2 million due to reduced broadcaster capital spending, lower TV Navigator revenue of $600,000 due to lower contractual pricing, lower Broadcast revenue of $1.7 million due to reduced customer orders and lower year over year software subscription revenues of $3.2 million due to the timing of the signing of last years contract extension with Comcast, which occurred during the third quarter of fiscal 2009, and resulted in higher than normal software subscription revenue. While year over year sales decreased in the above products, we did continue to experience higher software licensing revenues due to the licensing of Axiom primarily from large U.S. cable television customers and higher shipments of our VOD hospitality software products.
General and Administrative. General and administrative expenses consist primarily of the compensation of executive, finance, human resource and administrative personnel, legal and accounting services and an allocation of related facilities expenses. In the three months ended October 31, 2009, general and administrative expenses increased to $6.0 million, or 11% of total revenues, from $5.5 million, or 11% of total revenues, in the three months ended October 31, 2008. The increase was primarily due to $400,000 of transaction costs related to the eventIS acquisition.
Amortization of intangible assets. Amortization expense consists of the amortization of acquired intangible assets which are operating expenses and not considered costs of revenues. In the three months ended October 31, 2009 and 2008, amortization expense was $571,000 and $393,000, respectively. The increase was due to two months of amortization expense of the intangible assets related to the acquisition of eventIS. An additional $286,000 and $47,000 of amortization expense related to acquired technology was charged to cost of sales for the three months ended October 31, 2009 and 2008, respectively. The increase in amortization expense was primarily due to the amortization of intangible assets acquired in connection with the acquisitions of eventIS and Mobix.
Interest and Other Income, net. Interest and other income, net was $455,000 in the three months ended October 31, 2009, compared to $45,000 in the three months ended October 31, 2008. The $455,000 for the three months ended October 31, 2009 is comprised of $172,000 of interest income and $278,000 of translation gains. The $45,000 for the three months ended October 31, 2008, is comprised of $467,000 of interest income and $434,000 of translation loss. The decrease in interest income was due to lower interest rates. Translation gains and losses at our various foreign subsidiaries (where the functional currency is the US Dollar) are derived from fluctuations in exchange rates between the various currencies and the U.S. dollar.
Equity Loss in Earnings of Affiliates. Equity loss in earnings of affiliates was $273,000 and $179,000 in the three months ended October 31, 2009 and 2008, respectively. For the three months ended October 31, 2009, $420,000 of equity loss was recognized from On Demand Deutschland, net of $147,000 in accreted gains related to customer contracts and content licensing agreements and a capital distribution related to reimbursement of previously incurred costs. For the three months ended October 31, 2008, the On Demand Deutschland loss was $342,000 net of $163,000 in accreted gains related to customer contracts and content licensing agreements and a capital distribution related to reimbursement of previously incurred costs.
Product Revenues. Product revenues decreased 11% to $76.3 million in the nine months ended October 31, 2009 from $86.2 million in the nine months ended October 31, 2008. Product revenues from the Software segment accounted for 65% and 71% of the total product revenue for the nine months ended October 31, 2009, and 2008, respectively. The Servers and Storage segment accounted for 35% and 29% of total product revenues in the nine months ended October 31, 2009 and 2008, respectively. The $9.9 million decrease in product revenues between years is primarily due to the impact of reduced advertising revenues on broadcasters capital spending which adversely impacted our Broadcast products and Advertising Insertion products revenues.
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