Welcome!

.NET Authors: ITinvolve Blog, Srinivasan Sundara Rajan, Sematext Blog, Aditya Banerjee, Jayaram Krishnaswamy

News Feed Item

Vecima Reports Q1 Fiscal 2013 Results

VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 11/13/12 -- Vecima Networks Inc. (TSX:VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, today reported financial results for the three months ended September 30, 2012. All figures are in Canadian dollars and in accordance with International Financial Reporting Standards ("IFRS") unless otherwise stated.


FINANCIAL HIGHLIGHTS

---------------------------------------------------------------------------
(CAD dollars in millions except percentages,                               
 headcount, and per share data)                  Q1FY2013 Q4FY2012 Q1FY2012
---------------------------------------------------------------------------
Revenue                                              24.9     28.7     20.0
---------------------------------------------------------------------------
Gross Margin                                          40%      38%      37%
---------------------------------------------------------------------------
EBITDA(1)                                             8.4      4.5      1.7
---------------------------------------------------------------------------
Adjusted EBITDA(1) (removes gains on sale of                               
 assets and stock-based compensation)                 4.5      4.5      1.6
---------------------------------------------------------------------------
Net income or (loss)                                  5.3      1.7     (0.7)
---------------------------------------------------------------------------
Earnings or (Loss) per share                                               
(based on weighted average number shares                                   
 outstanding)                                       $0.24    $0.07   ($0.03)
---------------------------------------------------------------------------
Cash and marketable securities                       25.7     19.5      7.8
---------------------------------------------------------------------------
Headcount                                             619      624      603
---------------------------------------------------------------------------
(1) EBITDA is not a recognized measure under IFRS and, accordingly,        
    investors are cautioned that EBITDA should not be construed as an      
    alternative to net income, determined in accordance with IFRS, as an   
    indicator of our financial performance or as a measure of our liquidity
    and cash flows. For a reconciliation of EBITDA and adjusted EBITDA,    
    investors should refer to Management's Discussion and Analysis for the 
    current quarter.                                                       
---------------------------------------------------------------------------

"Vecima is encouraged by the strong results in gross margin and cash flow generated through operations. These improvements were achieved despite the decrease in revenue from a strong fourth quarter in our last fiscal year," said Dr. Surinder Kumar, CEO of Vecima.

Vecima's Q1 revenue was $24.9 million, gross margin improved to 40%, EBITDA increased from $4.5 to $8.4 million and adjusted EBITDA was $4.5 million. Gross margin improved because of the increased efficiency and higher sales in new products.

As announced in July 2012, Vecima sold a parcel of non-serviced land in Saskatoon and received proceeds of approximately $4.0 million. The Company also sold a small number of radio spectrum licenses for $0.4 million in Q1.


MSO BUSINESS SERVICES

Terrace Family

--  Sales increased 7% to $8.7 million compared to $8.1 million in Q4 of
    FY12. Vecima continues to see consistent uptake of its TC1200, TC1000
    and TC600 products by its MSO customers. 
--  Revenue from TC600 increased over the last three quarters indicating
    further adoption of this product by new and existing MSO customers. 

Terrace QAM

--  Sales increased 30% from $4.1 million in Q4 of FY12 to $5.3 million
    this quarter. Vecima expects continued strong sales through the fiscal
    year. 
--  Terrace QAM is attractive to MSO customers because it enables new
    service revenue in the hospitality sector which includes Tier 1 hotels
    and resorts. 

CABLE HEADEND

OEM QAM Modules

--  As anticipated, sales dropped from $4.5 million to $1.1 million. Sales
    are expected to decline in fiscal 2013 as the product moves towards end
    of life. 
--  Next generation solutions in the cable headend will include technology
    for which Vecima and its partner, a leading integrated circuit
    manufacturer, have secured the design win. The solution is for a Tier 1
    vendor's next generation broadband access platform. 

OEM Return Path Demodulator and CableVista

--  Sales of these legacy products declined from Q4 FY12 to Q1 FY13. Sales
    for our OEM return path demodulator dropped from $2.9 million to $1.6
    million; while CableVista sales declined from $2.0 million to $1.1
    million. A flattening out and then gradual decline in the sales of
    these products, which are in the late stage of their product lifecycle,
    is expected over the next 1-2 years. 
--  As previously announced, Vecima has executed an agreement with a
    prominent digital video access equipment vendor for a custom designed
    platform that interfaces to a large, currently deployed base of
    subscriber devices. Vecima expects the product to start shipping in
    production volume in the last quarter of this fiscal year. 

FLEET MANAGEMENT

--  During the period, we signed a supply agreement with our lead customer. 
--  We currently have over 400 active, paying subscribers on our FleetLynx
    service platform. We have shipped over 1100 subscriber modems. 
--  Potential customers are actively evaluating the system solution's
    capabilities and feature set after in-person demonstrations. Outside of
    our lead customer, these organizations have more than ten thousand
    vehicles under management. 

BROADBAND WIRELESS

--  Sales decreased approximately 13% from $2.6 million in Q4 of FY12 to
    $2.3 million this period. Weakness in sales of both BWIN and WiMAX
    products were responsible for most of the revenue drop. 
--  Software defined radio (SDR) sales remained relatively flat quarter
    over quarter. 

YOURLINK

--  Revenue remained flat at $3.1 million from Q4 FY12 to Q1 FY13. 

CONFERENCE CALL

A conference call and live audio webcast will be held on November 13, 2012 at 1 p.m. ET to discuss the Company's first quarter results. Vecima's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three months ended September 30, 2012 are available under the Company's profile at www.SEDAR.com, and at http://www.vecima.com/financials_ir.php.

To participate in the teleconference, dial 1-800-319-4610 or 1-604-638-5340. The webcast will be available in real time at http://services.choruscall.ca/links/vecima121113.html 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 www.vecima.com.

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, 2012, a copy of which is available at www.sedar.com. 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.


VECIMA NETWORKS INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(unaudited - in thousands of Canadian dollars)

                                                September 30,       June 30,
                                                        2012           2012
---------------------------------------------------------------------------
Assets                                                                     
Current assets                                                             
  Cash and cash equivalents                         $ 11,723       $ 19,549
  Marketable securities                               14,008              -
  Accounts receivable                                 19,747         23,818
  Income tax receivable                               13,621         13,600
  Inventories                                         30,787         29,663
  Prepaid expenses                                     1,481          1,076
---------------------------------------------------------------------------
                                                      91,367         87,706
Non-current assets                                                         
  Property, plant and equipment                       27,608         28,158
  Assets held for resale                                   -            385
  Intangible assets                                   11,506         10,819
  Investment tax credit asset                         31,394         30,384
  Deferred tax asset                                   3,899          5,129
---------------------------------------------------------------------------
                                                   $ 165,774      $ 162,581
---------------------------------------------------------------------------
                                                                           
Liabilities                                                                
Current liabilities                                                        
  Accounts payable and accrued liabilities          $ 12,446       $ 13,653
  Provisions                                             891            974
  Income tax payable                                       -            806
  Deferred revenue                                     1,205          1,311
  Current portion of long-term debt                      250            250
---------------------------------------------------------------------------
                                                      14,792         16,994
Non-current liabilities                                                    
  Other long-term liabilities                            488            342
  Provisions                                           1,504          1,522
  Long-term debt                                       3,417          3,479
---------------------------------------------------------------------------
                                                      20,201         22,337
---------------------------------------------------------------------------
                                                                           
Shareholders' equity                                                       
  Share capital                                       34,484         34,482
  Reserves                                             2,778          2,761
  Retained earnings                                  108,311        103,001
---------------------------------------------------------------------------
                                                     145,573        140,244
---------------------------------------------------------------------------
                                                   $ 165,774      $ 162,581
---------------------------------------------------------------------------


VECIMA NETWORKS INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited - in thousands of Canadian dollars except net income per share
 data)

                                                         Three months ended
                                                               September 30,
                                                        2012           2011
---------------------------------------------------------------------------
                                                                           
Sales                                               $ 24,872       $ 19,981
Cost of sales                                         14,829         12,677
---------------------------------------------------------------------------
Gross margin                                          10,043          7,304
---------------------------------------------------------------------------
                                                                           
Operating expenses                                                         
Research and development                               1,898          2,764
Sales and marketing                                    1,026          1,182
General and administrative                             4,461          5,040
Stock-based compensation                                  17             22
Other (income)                                        (4,155)          (310)
---------------------------------------------------------------------------
                                                       3,247          8,698
---------------------------------------------------------------------------
Operating income (loss)                                6,796         (1,394)
Finance costs                                            235            136
Finance income                                            39            534
---------------------------------------------------------------------------
Income (loss) before income taxes                      6,600           (996)
Income tax expense (recovery)                          1,290           (275)
---------------------------------------------------------------------------
Net income and total comprehensive income            $ 5,310         $ (721)
---------------------------------------------------------------------------
                                                                           
Net income per share                                                       
Basic                                                 $ 0.24        $ (0.03)
Diluted                                               $ 0.24        $ (0.03)
                                                                           
Weighted average number of Common                                          
  Shares outstanding - basic                      22,317,339     22,316,767
  Shares outstanding - diluted                    22,382,537     22,316,767


VECIMA NETWORKS INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited - in thousands of Canadian dollars)

                                     Share              Retained           
                                   Capital   Reserves   Earnings      Total
---------------------------------------------------------------------------
                                                                           
Balance as at June 30, 2011       $ 34,482    $ 2,678   $ 89,735  $ 126,895
                                                                           
Net income and total                                                       
 comprehensive income                    -          -       (721)      (721)
Share-based payment expense              -         22          -         22
---------------------------------------------------------------------------
Balance as at September 30,                                                
 2011                             $ 34,482    $ 2,700   $ 89,014  $ 126,196
---------------------------------------------------------------------------
                                                                           
Balance as at June 30, 2012       $ 34,482    $ 2,761  $ 103,001  $ 140,244
                                                                           
Net income and total                                                       
 comprehensive income                    -          -      5,310      5,310
Shares issued by exercising                                                
 options                                 2          -                     2
Share-based payment expense              -         17          -         17
---------------------------------------------------------------------------
Balance as at September 30,                                                
 2012                             $ 34,484    $ 2,778  $ 108,311  $ 145,573
---------------------------------------------------------------------------


VECIMA NETWORKS INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited - in thousands of Canadian dollars)

                                                         Three months ended
                                                               September 30,
                                                        2012           2011
---------------------------------------------------------------------------
Cash flows from operating activities                                       
Net income                                           $ 5,310         $ (721)
Add (deduct) items not requiring cash                                      
  Gain on the sale of property, plant and                                  
   equipment                                          (3,590)           (13)
  Gain on sale of intangible assets                     (353)           (79)
  Depreciation of property, plant and                                      
   equipment                                           1,175          1,283
  Amortization of deferred development costs             555          1,240
  Amortization of finite-life intangible                                   
   assets                                                 37             41
  Stock-based compensation                                17             22
  Deferred income tax expense                          1,230           (212)
  Interest expense                                        58            136
  Interest income                                        (40)           (25)
Increase in other long-term liabilities                  146            (30)
Increase in provisions                                  (101)           640
Increase in investment tax credit asset                 (182)          (134)
Net change in non-cash working capital                                     
 relating to operations                                  393          3,545
Interest paid                                            (46)          (129)
Interest received                                         37             25
Income tax paid                                                            
---------------------------------------------------------------------------
                                                       4,646          5,589
---------------------------------------------------------------------------
Cash flows provided by investing activities                                
Purchase of property, plant and equipment               (638)          (921)
Proceeds from the sale of property, plant and                              
 equipment                                             3,988            139
Proceeds from the sale of intangible assets              363            150
Purchase of marketable securities                    (14,008)             -
Deferred development costs                            (2,114)        (2,205)
Purchase of indefinite and finite-life                                     
 intangible assets                                        (3)           (14)
---------------------------------------------------------------------------
                                                     (12,412)        (2,851)
---------------------------------------------------------------------------
Cash flows used in financing activities                                    
Proceeds from shares issued through exercised                              
 options                                                   2              -
Repayment of long-term debt                              (62)           (62)
---------------------------------------------------------------------------
                                                         (60)           (62)
---------------------------------------------------------------------------
                                                                           
Increase in cash during the year                      (7,826)         2,676
Cash and cash equivalents (bank                                            
 indebtedness), beginning of year                     19,549          5,095
---------------------------------------------------------------------------
Cash and cash equivalents, end of year              $ 11,723        $ 7,771
---------------------------------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.