Friedman Billings Cuts Estimates, Target on Seachange

Analyst Alan Bezoza sees no real signs of fundamental improvement for the company

Seachange International (SEAC ) posted a 23-cent second quarter loss and cut its fiscal 2006 guidance. Friedman Billings cut its estimates and price target on Seachange.

Analyst Alan Bezoza says Seachange posted another weak quarter. He noted the company's 23 cent loss per share in the second quarter, compared to his original 3 cent earnings per share estimates. Bezoza reiterated his market perform recommendation, adding that he had raised the company from underperform too early.

The analyst sees no real signs of fundamental improvement for the company. Seachange's sales in the second quarter were weaker in every product category, and video-on-demand visibility was nonexistent as Comcast is still absorbing its high-capacity rollouts from last year. Bezoza cut his earnings per share estimate for all of 2006 to a 40 cent loss from 21 cents, and his revenue forecast to $125 million from $151 million. The analyst also lowered his price target on the company to $7 from $9.

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