WATERLOO- Sandvine has reported revenues of $27.5 million U.S. in its fourth quarter, up 31% from the same period a year earlier. The company’s shares jumped 9.6% on Thursday closing at $1.70.
Sandvine attributes its success in part to the development of solutions that enable ISPs to create new methods of charging for increased bandwidth usage.
During the quarter the company recorded a one-time, $3.8 million reduction in operating expenses for Ontario government funding related to its ongoing project under the Next Generation of Jobs Fund.
"We are pleased with fourth quarter results as they demonstrate ongoing progress in revenue growth and profitability," said Dave Caputo, Sandvine's President and CEO. "Total revenue and wireless market revenue were at record levels, driven by large initial orders from two new Tier 1 customers and large expansion orders from major existing customers, which has been a key area of focus for us in 2012."
Q4 2012 highlights:
• Revenue by access technology market: wireless 48%; DSL 35%; cable 17%
• Revenue by geography: NA 44%; APAC 26%; EMEA 18%; CALA 12%
• Revenue by sales channel: reseller 78%; direct 22%
• Gross margin: 71%
• Cash, cash equivalents and short-term investments balance: $74.6 million
• Announced significant initial orders from new Tier 1 customers:
o A converged North American operator deploying service creation, business intelligence and traffic optimization solutions in the fixed and mobile networks
o A converged, multinational, Western European operator group deploying business intelligence and traffic optimization in the fixed line network of its home country
• Since its Q3 results announcement, Sandvine has announced over $18.0 million in expansion orders from major existing customers
• Won nine new service provider customers.
Sandvine also announced that Dermot O'Carroll has joined its Board of Directors. O'Carroll has spent almost 40 years in the telecommunications industry, the last 20 as a senior executive in various roles, including with Rogers Communications.
"Sandvine's customers are some of the most innovative communications service providers in the world. Dermot's elite experience in the industry will help ensure that the Company's strategy and focus are guided by the 'voice of the customer'," said Roger Maggs, Chairman of Sandvine's Board of Directors.
As Senior Vice President of Network Engineering and Operations at Rogers Communications (initially Rogers Cable) until his retirement this past year, he helped build a world-class network organization, oversaw a network re-build, the implementation of an industry-leading network operations centre, and the introduction of new technologies such as Internet-over-cable, digital TV, video-on-demand, switched digital video and phone service. With the integration of Rogers Communications' Cable and Wireless companies, he assumed responsibility for planning, engineering and operations for both wireless and cable access networks, and IP and transport networks.
Prior to his 15 years at Rogers, O'Carroll was with Unitel Communications Inc. as Vice President Network Services, where he was responsible for the deployment of a national advanced voice and data services network. Prior to that he spent 15 years with Bell Canada. O'Carroll also was the Canadian representative on the board of the Society of Cable Telecommunications Engineers from 2004 to 2010.
