Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Vecima Networks Inc. : Vecima Reports Q1 Fiscal 2013 Results

11/13/2012 | 09:45am US/Eastern
November 13, 2012 Vecima Reports Q1 Fiscal 2013 Results

VICTORIA - (November 13, 2012) - 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.


(CAD dollars in millions except percentages, headcount, and per share data)








Gross Margin








Adjusted EBITDA1

(removes gains on sale of assets and stock-based compensation)




Net income or (loss)




Earnings or (Loss) per share

(based on weighted average number shares outstanding)




Cash and marketable securities








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.

November 13, 2012


• 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.


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.

November 13, 2012


• 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.


• 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.


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


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

November 13, 2012

"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

Investor Relations - 250-881-1982 invest@vecima.com

November 13, 2012


November 13, 2012


November 13, 2012


P rs s R

ne two r k s November 13,2012



(unaudited - in thollsands of Canadian -dollars)

Cash flows from operating activities

Thre,e month s. ended

September 30,

2.012: 2011

Net income

Add (deduct) items. not requiring cash

Gain on the s.ale o f prop erty, plant and -equipment

Gain on s.ale o f intangible assets

Depreciation o f property, plant and ·equipment mortization o f deferr""d development cost:;

Amortization o f finite-lif"" intangible assets

S.to ck-bas""O comp ""nsation Deferr""d income tax exp ens.e lnterest exp ense

lnterest income

lncrease in other long1-term liabilities lncrease in provisions

lncrease in invo:.stment tax credit asset

N""Ì ehange in non-cas.h w orking capital relating to op "'rations. lnter.:.st p aid

lnter.:.st reoeiv"'d

Income tax paid

Cash flows proviclecl by investing activities

Purchase c f prop erty, plant and equipment

Proc<>"'ds from the sal"' o f prop "'rty, p lant and equipm"'nt

ProC"'"'ds from th"' sale o f intangible ass"'ts

Purehas.e o f marf:etal:·le s.ecuritiP-S

Cash flows used in financing activities

Proc"'"'ds from shar.:.s. is:su"'d through exerci&"'d options

Repaym"'nt of long1-term debt

s 5,3·10

(3,5190) (3-5J)








146 (101) (18-2)




4,646 (6J8)


363· (14,008)




.s 21)

1 )



1,2 o




c c

(12 )


5S, 9 (921)





( 2) ( 2)

lncrease in cash during1 the year


2, 7



Cash ancl eash equivalents, enel of year






distributed by
React to this article
Latest news
Date Title
02:23p ANHEUSER BUSCH INBEV : AB InBev plans to sell Peroni and Grolsch in takeover of SABMiller
02:21p KINGDOM : Saudi firm secures funding for world's tallest building
02:16p Greek central bank chief says need political consensus to end debt crisis
02:15pDJPhilippines' Richest Man Targets China's Middle Class With New Malls
02:08p WAL MART STORES : While you shop on Black Friday, I'll be selling you things I can't afford to buy
02:05p BARCLAYS : Premier League trophy back in Uganda
02:01p KONINKLIJKE PHILIPS NV : Philips advances diagnosis and treatment of cancer with launch of IntelliSpace Portal 8.0 featuring new digital radiology capabilities
02:01p ERGORESEARCH : First Quarter Results fiscal year ended September 30, 2015 - Ergoresearch reports its results for the quarter ended September 30, 2015
02:00p PHILIPS : advances diagnosis and treatment of cancer with launch of IntelliSpace Portal 8.0 featuring new digital radiology capabilities
01:54p MANCHESTER UNITED : Arsenal miss out on joining leaders with Norwich draw
Latest news
Hot News 
OPPORTUNITY INVEST MGMT : 27 november 2015 - Announcement AGM on 22 december 2015
ATLANTIS RESOURCES : Tidal generating firm announces long partnership for investment by Gordon Calder
CYTOTOOLS : berichtet über Ergebnisse der europäischen klinischen Studie Phase III: Resultate der Behandlung des diabetischen Fußes mit DermaPro(R) bestätigen nicht die Ergebnisse der vorangegangenen Studien (DGAP News)
EUROPA OIL & GAS : Environment Agency asked to look at Leith Hill drilling firm's finances before giving permit
IMAGINATION TECHNOLOGIES : Sir Hossein Yassaie receives 2015 Lifetime Achievement Award in annual Elektra European Electronics Industry Award...
Most Read News
11/28 Shops2Apps Launches New Service to Transfer Sites and Stores into Native Mobile Apps
11/28 SES TLMACE A S : Project of Three Boilers Denitrification in Žilina Successfully Finished
12:53a NIOC NATIONAL IRANIAN OIL : Iran Petroleum Contracts Dazzling Enough for Foreign Investors
10:01a Advanced Chiropractic Group Helps Build Natural Immunity Against Cold and Flu
10:01a Acres Mill Veterinary Clinic Warns Cold Weather Not Sufficient Heartworm Prevention
Most recommended articles
02:16p Greek central bank chief says need political consensus to end debt crisis
02:15pDJPhilippines' Richest Man Targets China's Middle Class With New Malls
01:39pDJEU's Banking Union Shows Weakness, not Power, Defines European Bloc
01:35pDJU.S. Housing Can Withstand Rate Rise
01:15pDJEU's Tusk Urges Leaders to Back Turkey Refugee Deal -- 3rd Update