SeaChange International Inc.

SeaChange International, Inc. (SEAC - Snapshot Report) is coming of a record-setting quarter and Wall Street is projecting phenomenal growth rates. The company will look to continue its streak of positive surprises on Nov 27.

Company Description

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 video streams including advertisements, movies, news updates and other video programming requiring precise, accurate and continuous execution.

Record-Breaking Revenue

On Sep 4 SeaChange announced second-quarter fiscal 2009 results which included a 15% year-over-year increase in revenues. Total revenue for the period was $50.7 million, a company record, up from $44.2 million in the same quarter last year.

Earnings per share were 5 cents or a 67% surprise as analysts only expected 3 cents. This is the fourth earnings surprise in as many quarters, averaging 202% per surprise.

Guidance Intact

After a strong first half of 2009, SeaChange reiterated full-year guidance, including a 10% increase in revenues. The company will continue to focus on limiting its SG&A expenses and expects strong spending on VOD and advertising software in North America.

Explosive Growth

The consensus estimate for the current year is 21 cents, a gain 5 times larger than last year's loss. Estimates for next year are 31 cents, 50% higher than 2009 projections.

Third quarters earnings estimates are averaging 9 cents, 29% higher than the 7 cents one year ago.

The Chart

Shares of SEAC have been trading in a wide range over the past few weeks. The stock hit support near $6.50 per share and is consolidating just above that level. Take a look at the chart below.

Read the full analyst report on SEAC