VICTORIA – Canadian manufacturer (and small cable operator) VCom Inc. reported net income after tax in the third quarter, ended March 31, 2006, of $3.1 million, compared to $2.4 million in the second quarter of the year, representing quarter over quarter growth of 30%.
Total revenue for the same periods was $21.4 million and $19.1 million respectively, representing quarter over quarter growth of 12%.
Since VCom was not a public company at this time last year, the financial release does not provide a comparison to the third quarter of last fiscal year.
Sales for the nine months ended March 31, 2006 were $58.1 million. Excluding the effect of a non-recurring event last year, the nine-month revenue this fiscal year was 27% higher than three-quarters of the company’s fiscal 2005 operating revenue. "The company increased productivity and experienced economies of scale in the period that allowed it to substantially increase sales and maintain gross margin in spite of the 770 basis point appreciation in the average value of the Canadian dollar during this period as compared to the same period last year," says the press release.
"Gross margin was 37% for both the third quarter and the first nine months of our 2006 fiscal year, within our model of 35 to 39%," it continues.
VCom designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. VCom’s hardware products incorporate embedded software developed by it to meet the complex requirements of next-generation, high-speed digital networks. It also owns several small cabler operators under the Yourlink brand, which "was EBITDA positive in the third quarter, contributing to an improvement in consolidated EBITDA," said the release.
