VICTORIA – Vecima Networks saw profits fall $1.4 million for the first quarter of fiscal 2015, but saw adjusted EBITDA jump 54% year-over-year.
For the period ended September 30, 2014, the broadband equipment provider posted revenues of $23.1 million, up from $21.7 million in the same period last year, adjusted EBITDA of $7.0 million compared to $4.5 million year-over-year, and an increase in gross margin from 47% to 50%. Net income fell to $4.0 million from $5.4 million in the first quarter of fiscal 2014, but the company noted that Q1 2014 experienced a one-time gain due to the sale of spectrum licences.
Terrace Family sales products were $7.1 million, similar to the $7.2 million achieved in Q4 fiscal 2014. Vecima said that the uptake of Terrace Family products remained strong due to demand from U.S. cable MSOs continuing to transition to all-digital networks in order to create capacity for next generation services.
Sales from the Terrace QAM product group increased to $6.0 million in Q1, from $5.0 million in Q4 2014, driven primarily by timing of deliveries to its lead customer and early interest by international MSOs. Vecima said that this product provides “an elegant platform” over which cable operators can deliver high definition services to hospitality customers.
Vecima also continued early deployment of its new Digital Video Access Platform (DVAP) in the first quarter of fiscal 2015, generating sales of $1.8 million.
"Our first quarter results reflect the continued success of our platform products which are used by world leading cable operators to provide desirable services to their commercial customers”, said president and CEO Sumit Kumar, in the news release. “Over the next several quarters we plan to develop additional products and platforms that fuel the long-term objective of cable operators to provide gigabit class Internet speeds and IP based video broadly."
