Vecima Reports Fiscal 2012 Q3 Results
(firmenpresse) - VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 05/15/12 -- Vecima Networks Inc. (TSX: VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, today reported financial results for the fiscal 2012 third quarter ended March 31, 2012. All figures are in Canadian dollars and in accordance with International Financial Reporting Standards ("IFRS") unless otherwise stated.
Vecima's fiscal 2012 third quarter revenue increased 22% to $25.8 million compared to the second quarter. Had the Canadian dollar remained constant during Q3, Vecima would have reported sales of $26.3 million. Strong Converged Wired Solutions sales, particularly Terrace A, OEM QAM Modules and TerraceQAM, were the primary cause of revenue growth in the third quarter.
"Our Q3 sales of $25.8 million reflects a significant and continued increase from $20.0 million in Q1 and $21.2 million in Q2 as we continue to execute on our strategy to shift revenue from legacy product sales to recently introduced and new product lines," said Dr. Surinder Kumar, CEO of Vecima. "We were able to achieve this growth while realigning our production resources to increase efficiency."
Vecima has diligently monitored operating expenses while adding additional resources where necessary to meet revenue targets, resulting in a return to operational profitability in the third quarter.
Gross margin decreased slightly to 35% for Q3, providing a gross profit of $9.1 million, compared with a gross margin of 37% for Q2, providing a gross profit of $7.8 million. Gross margin was negatively impacted by about 3% due to certain effects within the third quarter. The appreciation of the Canadian dollar during the quarter accounted for 2% and a one-time cost related to the end of life of a legacy OEM module accounted for about 1%.
The Company's cash position was $14.1 million at quarter end, up from $12.6 million at the end of the second quarter of fiscal 2012. Subsequent to quarter end, on April 3, 2012, the Company announced it had successfully concluded phase 2 of an agreement to sell a portion of its radio spectrum licenses in the 3.5GHz band for $7.3 million to Xplornet Broadband Inc.
FINANCIAL HIGHLIGHTS OF RECENTLY INTRODUCED PRODUCTS
Sales from these products may fluctuate from quarter to quarter depending on customer demand and the timing of customer purchase decisions. However, over a longer time horizon, the Company expects to see revenue growth from these products.
Terrace A
Terrace A is a device that provides multiple channels of video when a cable operator transitions to all digital thereby increasing the capacity of the network tenfold. Sales in Terrace A increased to $8.9 million in Q3 from $6.1 million in Q2, primarily due to strong cable MSO sales. Terrace A revenue growth in the third quarter was unusually strong due to TC1200 sales. Revenue from the Company's Terrace TC600, a recently introduced addition to the Terrace A family of products, is the most rapidly growing Terrace A product and the Company expects sales in this product to continue to increase.
OEM QAM Modules
QAM technology is used by cable operators to provide digital video, high definition television, high speed data, video on demand, and other services. OEM QAM Module sales increased to $4.1 million in the third quarter, representing a 27% increase from $3.2 million in Q2.
FINANCIAL HIGHLIGHTS OF NEW PRODUCTS
These new products are in the initial stage of market introduction and sales orders are expected to ramp up over the next two quarters.
TerraceQAM
TerraceQAM provides cable system operators with market leading technology delivering HD digital video streams in a secure format connecting directly to newer flat panel TVs, eliminating the need for an additional digital set top box. The product allows cable companies to service the emerging demand for HD content in hotels. This provides a new source of revenue for cable MSOs. Sales of TerraceQAM in Q3 were $2.4 million, representing an increase of 124% from $1.1 million in the second quarter. Early in the third quarter, Vecima successfully completed another phase of approval testing which led to this increase in revenue. We expect strong sales growth in future quarters.
Concierge
Concierge is a solution for hospitality facilities such as hotels, resorts, hospitals, assisted living residences, and universities requiring a cost effective solution for providing HD channels with content delivered by satellite based service providers. We are in the initial stage of introducing this product with Q3 sales totaling $0.3 million. The sales were from a market leader in the hospitality industry and we expect to receive greater uptake from this customer through calendar 2012. We have provided demo equipment to multiple hospitality integrators and have received positive feedback from these trials to date.
Fleet Management
The introduction and adoption of this new wireless product has been slower than expected. We have an extensive list of interested customers and are pursuing multiple opportunities.
FINANCIAL HIGHLIGHTS OF BROADBAND WIRELESS AND SERVICE SEGMENT
Broadband wireless and YourLink revenue for the third quarter was $2.4 million and $3.1 million respectively, both unchanged from the prior quarter.
OUTLOOK
Revenue for fiscal 2012 is expected to be in our previously announced range of between $90 million to $100 million. Vecima remains on track to deliver gross profit margin at the top end of our targeted 30% to 40% range.
CONFERENCE CALL
A conference call and live audio webcast will be held on May 15, 2012 at 1 p.m. ET to discuss the Company's third quarter results. Vecima's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2012 are available under the Company's profile at , and at .
To participate in the teleconference, dial 1-800-319-4610 or 1-604-638-5340. The webcast will be available in real time at and will be archived on the Vecima website at http://www.vecima.com/events_ir.php.
About Vecima Networks
Vecima Networks Inc. (TSX: VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima's hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima's solutions to deliver services to a converging worldwide broadband market, including what are commonly known as "triple play" (voice, video and data) and "quadruple play" (voice, video, data and wireless) services. Vecima's solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as "the last mile", by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima's products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. More information is available at our website at
Forward-Looking Statements
Certain statements in this press release may constitute forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These statements include but are not limited to statements regarding management's intentions, belief or current expectations with respect to market and general economic conditions, future sales and revenue expectations, future costs and operating performance. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include, but are not limited to, the current significant general economic uncertainty and credit and financial market volatility and the distinctive characteristics of Vecima's operations and industry and customer demand that may have a material impact on, or constitute risk factors in respect of Vecima's future financial performance, as set forth under the heading "Risk Factors" in the Company's Annual Information Form dated September 28, 2011, a copy of which is available at . In addition, although the forward-looking statements in this press release are based on what management believes are reasonable assumptions, such assumptions may prove to be incorrect. Consequently, readers should not place undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Vecima disclaims any intention or obligation to update or revise any forward-looking statements, as a result of new information, future events or otherwise, except as required by law.
Contacts:
Vecima Networks Inc.
Investor Relations
250-881-1982
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Datum: 15.05.2012 - 06:00 Uhr
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