Welcome!

Microsoft Cloud Authors: David H Deans, Yeshim Deniz, Janakiram MSV, Andreas Grabner, Stackify Blog

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
---------------------------------------------------------------------------

Contacts:
Vecima Networks Inc.
Investor Relations
250-881-1982
[email protected]
www.vecima.com

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
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
SYS-CON Events announced today that Pulzze Systems will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems Inc, provides the software product "The Interactor" that uniquely simplifies building IoT, Web and Smart Enterprise Solutions. It is a Silicon Valley startup funded by US government agencies, NSF and DHS to bring innovative solutions to market.
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...