Morgan Keegan & Co. analyst Murray Arenson reiterated his "outperform" rating for SeaChange International Inc. last week, after the company reported strong third-quarter results and robust demand for its video-on-demand products. SeaChange reported revenue of $25.2 million for the third quarter of fiscal 2002, up 2 percent despite the economic downturn. More importantly, the company reported its third consecutive period of VOD revenue in excess of $10 million — it garnered $10.2 million in the third quarter, exceeding Arenson's estimate of $6.8 million. SeaChange also said it would initiate a follow on its public offering of about 3 million shares of stock, with proceeds to be used for general corporate purposes. The announcement follows an almost 100 percent appreciation in SeaChange's stock price since late September, Arenson wrote in his report.