Video-delivery technology provider SeaChange International Inc. posted earnings that were a modest improvement from the previous quarter but still lower than the prior year.

The company posted revenue for its fiscal third quarter 2006, which ended Oct. 31, totaling $35.3 million. That is a 35 percent jump compared to the $26.2 million in revenues gathered during the second quarter, but it falls short of the $42.6 million posted during the same quarter last year.

As a result, SeaChange recorded a net loss of $2.1 million, or 7 cents per share, for the third quarter. That parallels the revenue figures, with an improvement compared to the $6.6 million loss posted in the second quarter but a backslide compared to the $5.5 million profit the company earned in the fiscal third quarter 2005.

In business segments, SeaChange drew in $11.7 million from its video-on-demand product lines, including $3.1 million from middleware software licensees from Liberate Technologies Inc., which it acquired in July.

Revenues from advertising and broadcast systems, meanwhile, totaled $6.3 million and $4.0 million, respectively. Service revenues came in at $13.3 million, including $1.2 million from SeaChange's newly-acquired subsidiary, The ON Demand Group. Still, that was not enough to put the Earnings before Interest, Taxes, Depreciation and Amortization in the black - instead, SeaChange saw a net EBITDA loss of $1 million.

"It is clear on-demand will play a more significant role in the distribution of all forms of television. With the most VOD systems deployed, SeaChange software and servers will play a key role in this emerging trend," noted SeaChange President and CEO Bill Styslinger.