On Wednesday night, video-on-demand provisioning expert SeaChangeInternational (NASDAQ:SEAC) is set to report earnings for its fiscal Q3 2007. Let's tune in early to see what's on.

What analysts say:

  • Buy, sell, or waffle? SeaChange operates way below the analyst radar, with only five following the company. Three of them have a hold rating, but the other two each have a strong buy. In Motley Fool CAPS, coverage is slightly heavier, with 32 ratings from your fellow investors -- and only one of those is an "underperform." In sum, it's a three-star stock.

  • Revenues. Wall Street thinks the company will produce sales in the neighborhood of $39.2 million, 11% above the year-ago mark.

  • Earnings. The consensus forecast calls for a net loss of $0.07 per share, about the same as last year.

What management says:
CEO Bill Styslinger is optimistic about his prospects, based on four key factors: "The emerging strength of our Axiom software, middleware and applications business; an increase in demand for greater storage and streaming capacity; the expansion of our telco and international businesses; and growth in our recurring revenue businesses."

SeaChange landed a multi-year deal with Comcast (NASDAQ:CMCSA) over the summer, and the IPTV market is poised for takeoff, with all the major cable, satellite, and even phone companies backing that entertainment revolution. "Ultimately, if you believe in On Demand, you believe in SeaChange," says Styslinger. From there, it's your call.

What management does:
The company turned a corner last quarter, producing a quarterly GAAP profit. Every ratio here appears to have bounced off their respective rock bottoms as SeaChange's business model gains traction.

Margins %

4/05

7/05

10/05

1/06

4/06

7/06

Gross

45.0

42.6

40.0

41.3

42.4

46.6

Op.

3.8

(5.6)

(13.7)

(13.5)

(16.0)

(7.3)

Net

4.2

(2.9)

(9.3)

(9.8)

(12.6)

(5.8)
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.

One Fool says:
SeaChange can latch onto more than just the IPTV movement to drive its growth. For example, everybody and their cat is going high-definition these days, and SeaChange just introduced a new range of products designed around high-def video on demand. There is little doubt in my mind that we're looking at a very healthy business with focused management, and it wouldn't surprise me one bit to see another profit come Wednesday.

Customers, Suppliers, and Competitors:

  • C-COR (NASDAQ:CCBL)
  • Thomson (NYSE:TMS)
  • Sony (NYSE:SNE)
  • Concurrent Computer (NASDAQ:CCUR)
  • Avid Technology (NASDAQ:AVID)

SeaChange isn't an official Rule Breaker -- yet -- but it sure has the moxie of one. Sign up for a free 30-day trial to our ultimate growth stock newsletter service and see what David Gardner and his merry Fools pick to do even better than this stock.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. You can check out Anders' holdings if you like. Foolish disclosure is your safe harbor in stormy seas.