Video-on-demand (VOD) equipment supplier SeaChange International reported third-quarter VOD revenue of $10.2 million, its third consecutive quarter of $10 million-plus VOD revenue. While that figure is down slightly from the first two quarters of the year, SeaChange's revenue from VOD in the year to date is up about fourfold ? evidence of the continued confidence operators are showing in the new service.

Next year SeaChange expects operators will increase spending on VOD by nearly 40%, to about $200 million, up from approximately $120 to $125 million this year. SeaChange's VOD customer roster includes Time Warner Cable, Comcast, Adelphia Communications and Cablevision Systems, and the company expects AT&T Broadband and Cox Communications to be more active next year with VOD deployments. SeaChange currently has commitments to deploy VOD systems to more than 8 million subscribers.

?The outlook for VOD spending by operators next year is strong,? wrote Morgan Keegan analyst Murray Arenson in a research note last week.

For the quarter ended Oct. 31, SeaChange posted a net loss of $1.2 million, or 5 cents a share. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $366,000, or 2 cents a share, compared with EBITDA of $2.1 million, or 9 cents a share, in the same quarter last year.

Total revenue, including broadcast systems, advertising systems and service rose about 1%, to $25.2 million, up from $25 million last year. SeaChange also announced plans to access the capital markets with a secondary offering of 3 million shares.

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