VICTORIA – Vecima Networks reported its highest gross margin and cash balance in the company's history in the third quarter of fiscal 2014.
For the period ended March 31, 2014, the broadband equipment provider posted revenue of $22.6 million, up from $21.5 million in the same period in 2013, adjusted EBITDA of $6.2 million compared to $4.5 million last year, and an increase in gross margin from 44% to 52%. Net income was $3.4 million, up from $2.0 million year-over-year.
Terrace Family sales in the third quarter increased to $8.1 million compared to $6.6 million in the previous quarter. The company said that results continue to demonstrate "the intimate connection" the Terrace product line has to the ongoing digitization of the world's cable networks.
Sales from the Terrace QAM product group were $4.1 million, as Vecima prioritized other products that were time sensitive to ship in Q3. Bookings for Terrace QAM were strong leading into Q4, and the company said that it expects customer demand to remain robust as cable operators work to provide upgrades to HD service across the major hotel brands.
"We have delivered exceptional financial performance in Q3 and are extremely pleased that our investments in the best products to meet our customer's needs are paying dividends," said president and CEO Sumit Kumar, in a statement. "With our business services and other solutions continuing to lead important market segments, we've driven our margins and cash balance to new highs as we capitalize on the market strength of these solutions."
