On March 14, video-on-demand provisioner SeaChange International (NASDAQ:SEAC) released fourth-quarter earnings for fiscal 2007, ended Jan. 31.

  • Revenue growth is coming along nicely, though you might expect a hastier rise from a small company in such an immature, high-stakes industry.
  • Sales and earnings for a tiny company like this one can be lumpy, and it's often a mistake to read too much into a single quarter's numbers. On that note, management recited a litany of orders that arrived after the quarter's end. Sometimes, it's just a matter of timing.
  • That bumpy track should smooth out somewhat in a year or two, as the company diversifies its customer base. Its far-and-away biggest client to date has been Comcast (NASDAQ:CMCSA), and that company's share of SeaChange revenues has declined from more 50% three years ago to 25% a year ago.
  • When we get the company's 10-K statement -- probably around mid-May -- we'll see the current Comcast share. We'll also get a cash flow statement explaining exactly where that fresh cash came from, after a year of steady quarterly losses, only moderate share dilution, and still no debt on the books.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2007

Q4 2006






Net Profit








Diluted Shares




Get back to basics with the income statement.

Margin Checkup

Q4 2007

Q4 2006


Gross Margin




Operating Margin




Net Margin




*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights


Q4 2007

Q4 2006


Cash + ST Invest.




Accounts Rec.









Q4 2007

Q4 2006


Accounts Payable




Long-Term Debt




The balance sheet reflects the company's health.

Cash Flow Highlights
We don't have a cash flow at this point, and have to wait for the 10-K filing. Darn it.

Free cash flow is a Fool's best friend.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

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At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.