VICTORIA – Despite a $3.8 million drop in revenue, Vecima Networks called fiscal 2013 a “strong year” thanks to a 65% growth in its higher margin products.
For the year ended June 30, 2013, the broadband equipment provider reported revenues of $91.9 million, down from $95.7 million in the comparable period last year, while gross margin grew to 43% from 37%. Net income shot up to $19.2 million from $13.3 million, and EBITDA was $31.3 million, up from $25.8 million last year.
Terrace Family sales increased to $5.3 million from $5.0 million in Q3 FY13 as MSO customers initiated their conversions to all digital. Terrace QAM sales dipped from $7.3 million in Q3 FY13 to $6.6 million this quarter.
Sales for OEM QAM Modules were $0.9 million in Q4 versus $0.4 million in Q3 and the company said that it expects “low but lumpy sales numbers as the product nears end of life”. Sales for its OEM return path demodulator dropped from $1.5 million to $1.1 million, while CableVista sales decreased from $1.1 million to $1.0 million from Q3 to Q4 FY13.
The first commercial shipment of Vecima’s new digital video access platform was to ship in the fourth quarter but was delayed due to shipping logistics to the first week of Q1 FY14. The company said that it expects a strong launch through 2014, noting that it offers OEM partner’s customers both power and space savings over legacy solutions.
Sales cycles in the telematics market have been longer than anticipated, and the company said that while it’s FleetLynx market presence has been slow to materialize into significant revenues, prospects remain strong through multiple channels including wireless carriers and vehicle manufacturers
Looking ahead, Vecima management expects revenue in FY14 to be between $85 and $95 million; gross margin to remain in the 40-45% range; and adjusted EBITDA in the range of $17- $22 million.
"Through our healthy free cash flow, ongoing monetization of non-core assets, and collection of income tax receivables, we expect to drive our cash balance to greater than $50 million by the end of calendar year 2013," said president and CEO Sumit Kumar, in a statement.
