I've been preaching the virtues of video-on-demand (VOD) expert SeaChange (NASDAQ:SEAC) for a long time, and it feels good to see some validation of my one-Fool crusade. Not great, but pretty good.

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 (NASDAQ:CCBL) has coasted along without much volatility for the last three months and is up 20% on the year. Concurrent Computer (NASDAQ:CCUR), on the other hand, shared SeaChange's drooping stock chart, only without a large spike at the end.

So it's not a sectorwide market trend, but something each company is going through on its own. Cable companies like Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC), and even telco companies like AT&T (NYSE:T) and Verizon (NYSE:VZ) are falling all over themselves to roll out competitive on-demand products based on technology from SeaChange and its peers, and I really do think that this is the future of television as we know it.

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:

AT&T is a former Motley Fool Stock Advisor pick, and Time Warner Cable is a separately tickered subsidiary of a current Stock Advisor recommendation. Join the Stock Advisor family for the holidays with a free, 30-day trial of the newsletter.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. You can check out Anders' holdings if you like, and Foolish disclosure is the best cure for an itchy trading finger.