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Vecima posts 34% increase in Q2 revenues

February 12, 2009 By Mike Robuck

Canadian telecommunications equipment vendor Vecima Networks said its second-quarter revenues of $36.9 million represented a 34 percent increase over revenue in the second quarter a year ago.

Total sales for the first half of fiscal 2009 increased by 37 percent, to $73.6 million, up from $53.8 million for the six months ended in 2007.

Vecima’s broadband wireless sales increased 26 percent to $2.8 million for the second quarter of this fiscal year, compared with $2.2 million for the three months ended in 2007. Wireless sales increased 7 percent to $12.3 million for the six months that ended last year, compared with $11.5 million for the first half of fiscal 2008.

Vecima said the increase in the second quarter was driven by a rise in WiMAX sales and a growth in the shipment of broadband wireless Internet network equipment.

Operating expenses for the second quarter this year increased 22 percent to $10.2 million, compared with $8.3 million for the same period in the prior year.

“Strong, continued demand from bandwidth infrastructure partners like Cisco and Motorola, combined with the ongoing need for major cable companies to provide customers with additional bandwidth, led to significant growth in the second quarter,” said Vecima Chairman and CEO Surinder Kumar. “While not immune to worsening macroeconomic conditions, we have been able to effectively manage our operations and generate solid improvements in revenue and gross margin, in excess of historical levels, as we focused on some key opportunities in our converged wired business.

“Looking ahead, we will focus on executing our multi-prong growth strategy and working closely with key customers in an effort to mitigate volatility in the near-term and generate continued, meaningful improvements in our financial performance over the longer-term.”

More Broadband Direct 02/12/09:
•  Charter Communications to file Chapter 11
•  Stocks fall as investors ask: Will stimulus work?
•  FCC blocks Feb. 17 DTV switch for 123 stations
•  Got cash? Clearwire inspiring speculation
•  Dish Network CEO tries to one-up Sirius XM
•  Arris posts strong Q4, but lower estimates
•  Feeva adds addressable ad support to Cisco router
•  Vecima posts 34% increase in Q2 revenues
•  Tekelec intros next-gen Eagle platform
•  Ericsson to debut home gateway software
•  Juniper, Nokia Siemens partner on Carrier Ethernet
•  Broadband Briefs for 02/12/09

 

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