To All:
This is a message I posted on AOL in response to the Daily Trouble on SEAC on 10/10.
"While usually I enjoy the insightful analyses in the Daily Trouble, I thought that the DT on SEAC was not very incisive - more like a "Daily Bubble."
For example, the company in July readily admitted a paperwork/processing problem with receivables that accounted for the increase in DSO's. Management stated that a team of finance and operations personnel, including the new operations vice president, had been given this problem as a top priority.
In regard to recently announced lower than anticipated revenues for the digital ad insertion product line, this was not really that surprising, since the third and fourth quarters are traditionally slow for orders from cable TV companies.
What I would have liked to have seen in the DT is a more in-depth discussion of SEAC's efforts to diversify its product lines into the markets for near-video-on-demand, video-on-demand, and broadcast video server technologies, which could run into billions of dollars in the next few years. These are the highest potential growth areas for SEAC, with the digital ad insertion business currently providing the cash flow for R and D and marketing of these
new lines.
The risk for the SEAC investor is whether these new emerging digital video markets will actually pan out, and whether SEAC will be able to leverage its current technology lead to exploit those markets and fend off competition from much larger companies such as Sony and HP.
IMHO, SEAC management is taking the steps needed to exploit these emerging market opportunities, but the risks (and potential returns) are considerable."
Good luck to SEAC investors - Alan. |
