The company also offers advertising products that automate the process of advertisement and other video insertions across various channels and geographic zones for cable system operators and telecommunications providers; SeaChange AdPulse On Demand Advertising System that helps in managing, propagating, playing out, and tracking advertisements; and middleware software products that provide access across devices made by different manufacturers to content across wired and/or wireless devices.

In addition, it has VOD and broadcast servers and provides: professional services, installation, training, project management, product maintenance, and technical support; and on demand network resources management services.

SeaChange markets and sells through a direct sales organization in the United States; and through independent agents and distributors, as well as direct internationally. The company was founded in 1993 and is headquartered in Acton, Massachusetts.

This stock sold for $76 in 2000. You remember that year, the one when all the computers were going to stop on January 1, then in March, the world ended, at least as we knew it. From that lofty level, the stock plummeted to $4.50 by 2002, with many stops along the way, going up and down like a yo-yo as investors tried to figure out what was really happening at the company.

Revenues stalled last year at $201.7 million, almost identical to the $201.8 million in 2008. This year, projections are for $231.77 million, then $257.11 million in 2011.

Fiscal first quarter showed improvement with sales up 11% from the same period last year. The main driver: video on demand (VOD), especially in Europe. Earnings were 10 cents a share, 25% above anlaysts forecast of 8 cents. Software was 76% of revenues in the first period, with a 34% improvement in that group from last year. Operating income increased by 35% in Software thanks to better cost management. Media Services also showed strong sales: up by 51% thought it's still a small part of total business.

The group still slowing things down is Servers and Storage. Sales were down 52% in the first quarter with a loss of $4.7 million compared to a profit of $1.7 million last year in the first.

Seachange has several revenue sources with most of them improving. One sector isn't going to stop the new trend in better sales and profits, especially as the company is also geographically diversified. Further, the convergence of television and the Internet bodes well for the company, especially it VOD products as consumers look to watch what they want, when they want.

More numbers: Price to sales ratio is 1.34. Price to book is 1.42. Operating margin for the last 12 months was 1.14%. Profit margin was 9.28%. Return on equity was 10.43% while Return on assets was .54%.
Total cash is $76.08 million for $2.42 a share. There is no debt. Current ratio is 2.11. Book value per share is $6.22. Beta is .85. There are 31.37 million shares outstanding with a Float of 28.13 million. Insiders own 15.58% of the stock. Institutions have 71.10%. There is no dividend.

Aggressive investors will like the story here. This is a stock whose time seems to have come. With VOD on the Internet and mobile devices, SeaChange is the right place at the right time. Now if management can only manage earnings so they are more consistent, and consistently higher.

- Company Web site: www.schange.com