Low Tide for SeaChange Shares3/14/2004 7:00 PM Eastern
Shares in SeaChange continued to fall last week — down $1.49 (9.6%) between March 5 and March 10 — as investors appeared to still be smarting from lower-than-expected guidance issued earlier this month.
The drop was better than the week before, when SeaChange fell $4.31 (21.7%) between March 2 and March 4, after the company said first-quarter revenue would be about $39, about $1 million short of analysts' expectations.
While video-on-demand sales to cable operators rose above expectations to $25.4 million, broadcast and advertising revenue disappointed in the quarter, coming in at about half the consensus estimate.
Mosaic Equities research analyst Murray Arenson wrote in a report that although he does not expect broadcast and advertising revenue to rebound anytime soon.
He believes VOD sales will continue to grow, fueled by developments such as high-definition VOD, more compelling content and all-digital cable systems.
Arenson also believed the stock's downturn was mainly a market correction.