I've been preaching the virtues of video-on-demand (VOD) expert SeaChange
The company reported a $3.3 million profit for its third quarter, while Wall Street expected about a $1 million loss. At $49 million, revenue set a record, and SeaChange also managed to generate some cash rather than burn it. Moreover, management said that they expect the company to turn in a profitable fourth quarter, too. Two profitable quarters in a row? Perish the thought! That hasn't happened here since the summer and fall of 2004.
That's all good. So what, then, brings my joy down from "great" to "good," you ask?
See, a 32% one-day share price jump just barely nudged the shares above the level they occupied right after the last earnings report. SeaChange investors are still down more than 25% year to date, and the stock is a long way away from its historical price peak -- $68.50 in March, 2000. In other words, this is a case of "back in business" and not "out of this world." That will come later.
Rival C-COR
So it's not a sectorwide market trend, but something each company is going through on its own. Cable companies like Comcast
With the somewhat volatile movements in this company, I'd add this one to the watch list to revisit. With viewing habits shifting to VOD, SeaChange stands to benefit. And with two profitable quarters under its belt, let's see whether it keeps the momentum going.
Further Foolishness: