SeaChange International: In case you forget

Television and cable systems are undergoing a revolution, as the old concept of sending out a signal to whoever’s watching at any given moment falls by the wayside.

Consumers can set a DVR to catch the shows they want to watch later, or they can use on-demand technology that utilizes systems such as those from SeaChange International (Nasdaq:SEAC).

Any parent who has had to deal with a screaming kid because of a missed “SpongeBob SquarePants” episode can appreciate on-demand video now provided by many cable or satellite companies, usually in an upgraded service package.

The Internet, with its growing cache of always-available content, is a threat to broadcasting, and to survive the shows must be available when consumers want them. While decades-old DVR technology is a cheap alternative to pricey cable add-ons, on-demand content eliminates one variable that trips up viewers: forgetting to set the dang timer.

SeaChange International, which got its start in 1993 in digital advertising, develops and sells the fail-safe hardware, software services and equipment needed to generate revenue and retain the eyeballs of viewers. After churning up two turbulent years of losses, SeaChange appears to have sailed into the calmer waters of profitability.

Of six analysts surveyed by Thomson Reuters, four have SeaChange at “strong buy,” one has it a “buy” and the other has it at “hold.” The median long-range price target is $10.75, or roughly 30% of upside potential from where SeaChange has recently traded.

SeaChange hit a 52-week high of $8.45 on Monday, more than 60% better than the 52-week low of $4.95 on Nov. 8. In the past year, investors seem hesitant to keep the stock above $8 — they waffled after it touched $8.25 in December, although it held around $9 in early June 2007. Shares were last above . . .

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