WATERLOO – Network equipment maker Sandvine reports a third-quarter loss of 900,000 (U.S.) reversing a profit of $1.7 million reported last year.
The provider of equipment and software that helps ISPs manage network congestion said revenues slid 15% to $21.8 million from $25.8 million. It also reported that gross margins dropped to 70% from 76%.
"While we acknowledge that more work is needed to better leverage our market opportunity, we believe that our Q3 results are an indication of progress," said Dave Caputo, Sandvine's President and CEO. "We received some very significant follow-on orders from Tier-1 customers, which has been our main area of focus in 2012 and will be an important aspect of returning to strong growth."
Sandvine attributed smaller-than-expected 2Q revenue to delays in closing several projects with Telefonica. The Spanish telecom company accounted for 17% of Sandvine's fiscal 2011 revenue.
