Investors Dump SeaChange After Warning2/05/2001 8:33 AM Eastern
NASDAQ halted trading of SeaChange International Inc. shares for less than
one hour Monday afternoon after the company's stock plummeted following its
warning that it expects to miss fourth-quarter revenue expectations.
Blaming the shortfall on 'a delay in significant residential video-on-demand
orders,' SeaChange said it expected to report $24 million in fourth-quarter
revenue. It plans to release earnings March 8.
The company, which sells VOD and digital ad-insertion hardware, said it
expects to report a per-share loss between 7 cents and 10 cents. That's worse
than First Call/Thomson Financial estimates of 5 cents.
A SeaChange spokesman declined to elaborate on the delay in VOD orders.
SeaChange planned to hold a conference call to discuss the shortfall at 6:30
SeaChange's VOD-order delays could portend operator delays in rolling out
VOD, which MSOs have said would be one of their top priorities in 2001.
SeaChange is the leading VOD vendor, having reached distribution deals with
Cablevision Systems Corp., Time Warner Cable and other MSOs.
After hitting a low Monday of $13.87, shares in SeaChange closed at $19.38,
down about 24 percent.