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Technology Stocks : Seac - Seachange New IPO -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (108)	4/2/1998 8:55:00 PM
From: Alan Sherman	Read Replies (1) \| Respond to of 431

The latest wave of selling began on March 31, when SEAC filed its 10K with the SEC. For those who have been following the company, there were no surprises, although some shareholders may have been spooked by the statement that digital ad insertion revenues are anticipated to decline from 1997 to 1998. The CFO's resignation added to the uncertainty for many investors, given that revenue and earnings visibility is poor at the present time. I talked to Martha in IR today, and she said that the CFO left on congenial terms. She stated that he preferred working with young companies preparing for IPO's, and had been looking for another such prospect for some time. Martha confirmed that SEAC anticipated that quarterly revenues would meet most analysts' expectations, somewhere between the low of $14.8 million and the high of $18 million. My own opinion is that SEAC has about 3 to 6 months to really make something happen with its newer products (Movie System, Guestserve Networks, Broadcast Media Cluster, and residential ITV systems). Digital ad insertion revenues may still be strong during the current quarter given seasonal purchasing patterns of cable TV operators, but they could be quite weak during the second half of the year. The newer products must start generating substantial revenue growth during Q3 for the company (and its stock) to do well this year. Otherwise, we may have a penny stock on our hands! Good luck tomorrow. Alan