SeaChange expects 5 MSOs to deploy software on home video gateways; stock hits 52-week high

Video-on-demand technology vendor increases revenue projections for fiscal 2013
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SeaChange International (Nasdaq: SEAC) expects several major cable MSOs to deploy its software on home video gateways that can deliver programming to multiple TVs and IP connected devices in subscriber homes, CEO Raghu Rau told analysts Wednesday.

"We're in trials and discussions, engagements with multiple operators today. We expect to be able to sign at least five such contracts in the next several months," Rau said on an earnings call to discuss the company's results for the third fiscal quarter of 2013.

SeaChange supplies video-on-demand software to several pay TV providers, including Comcast (Nasdaq: CMCSA), Cox Communications, Cablevision (NYSE: CVC), Charter Communications (Nasdaq: CHTR), AT&T (NYSE: T) and Verizon (NYSE: VZ). Rau said that the company expects "a very large number of operator customers of ours to eventually go the gateway software route."

Verizon has said that it plans to deploy gateway devices in FiOS TV homes, but it hasn't yet said if it will use SeaChange's Adrenalin platform or software from another vendor to power the gateways. Comcast is beginning to expand the rollout of its Xfinity X1 service, which runs on gateways supplied by Pace (LSE: PIC.L).

SeaChange stock hit a 52-week high of $10.50 Thursday morning. The stock was trading at $10.37 at 12:30 p.m ET.

On Tuesday, SeaChange reported $39.2 million in revenue during the third quarter, down from $42.9 million during the same period last year.  But SeaChange raised its revenue projections, saying it expects to post $155 million to $159 million in revenue for fiscal 2013 and non-GAAP operating income in the range of 38 cents to 41 cents per share.

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