VICTORIA — Vecima Networks Inc. announced Thursday its Q4 2019 and full-year 2019 financial results, reporting increased revenues of $85 million for its fiscal year, despite experiencing a weaker fourth quarter in 2019.
Vecima’s $85 million in revenue for fiscal 2019 was up 9% from $78.1 million in revenue in 2018. However, the company’s Q4 2019 revenue amounted to only $20.7 million, which was down from the $24.4 million revenue it achieved in the same quarter last year. Overall, the company reported a net loss of $3.5 million for the full 2019 fiscal year, which is a considerable shortfall compared to the $10.8 million profit it posted for its 2018 fiscal year.
“Fiscal 2019 was a year of concerted moves and important achievements as we broadly solidified our market position in preparation for the most profound transitions unfolding in the industry: DOCSIS Distributed Access Architecture (DAA) and IPTV,” said Sumit Kumar, Vecima Networks’s president and CEO, in a news release announcing the company’s financial results.
“On the DAA front, we have now secured our first master purchase agreement covering our Entra Remote PHY Nodes and Monitor products with a Tier 1 operator entering field trials. Our DAA products are also progressing successfully through lab trials with a diverse mix of other Tier 1, Tier 2 and Tier 3 MSOs. These are important milestones on the path to commercialization of our new Entra technologies, and we anticipate deployments will initiate in fiscal 2020,” Kumar said.
“In our Content Delivery and Storage segment, we continue to make strides in the emerging global IPTV market. During fiscal 2019, we significantly advanced our industry-leading MediaScaleX platform and built and expanded customer relationships with some of the world’s largest MSOs. We believe our Content Delivery and Storage segment has the potential for over 20% sales growth in fiscal 2020 stemming from the pipeline of opportunities for migration to IP video networks, including linear broadcast, cloud DVR and time-shift TV,” Kumar said.
“Vecima achieved revenues of $85.0 million in fiscal 2019, a 9% increase over last year as a result of our acquisition of the Content Delivery and Storage business. While financially, fiscal 2019 reflected the overall transition of the business translating into a net loss of $3.5 million, the results are representative of a point in time for Vecima with DAA revenue yet to come. Thanks to the strategic steps taken in fiscal 2019 to tighten our R&D priorities, streamline our administrative processes and manage our business and finances prudently, we are moving into fiscal 2020 in a very strong financial position and ready to embark on growth,” Kumar added.
The full details of Vecima Networks’s financial results for Q4 2019 and full-year fiscal 2019 can be found here.
