WATERLOO, ON – Despite an uptick in revenue, net income at Sandvine plunged 34% for the third quarter ended August 31, 2014.
Net income fell to $3.1 million from $4.7 million in the same period last year, while non-IFRS fell 35% from $5.1 million to $3.3 million. Revenue grew 3% to $27.9 million from $27.2 million year-over-year.
Broken down by market, wireless sales accounted for 49% of Sandvine’s Q3 revenue, with DSL at 35%, and cable at 15%. Revenue by sales channel was reseller 68% and direct 32%, while revenue by geography was Europe, the Middle East and Africa (EMEA) 43%; North America (NA) 20%; Caribbean and Latin America (CALA) 19% and Asia and Pacific (APAC) 18%.
Gross margin increased two percentage points to 78% and the company won five new service provider customers in the period.
"This is our eighth consecutive quarter of year-over-year revenue growth and profitability, and our 2014 earnings growth has been strong. I am also pleased that we recently won one of the larger opportunities that we had originally anticipated closing in the third quarter," said president and CEO Dave Caputo, in the earning’s release.
