WATERLOO, ON – Second quarter profits at Sandvine dropped 32% while revenues dipped 4% for the period ended May 31, 2015.
Net income fell to $3.0 million from $4.4 million in the same period last year, while revenue of $28.6 million decreased from $29.7 million year-over-year.
Broken down by access technology market, DSL sales accounted for 37% of Sandvine’s Q2 revenue, with wireless at 35%, and cable at 25%. Revenue by sales channel was reseller 58% and direct 42%, while revenue by geography was Europe, the Middle East and Africa (EMEA) 41%; North America (NA) 32%; Caribbean and Latin America (CALA) 15% and Asia and Pacific (APAC) 12%.
Gross margin decreased one percentage point to 75%, and the company won 13 new service provider customers in the period.
"Strength in EMEA and the DSL market was largely driven by over $6 million in revenue related to an order for our market-leading 100-Gigabit-Ethernet PTS 32000 platform”, said president and CEO Dave Caputo, in the earnings release. “We believe that the product's performance and efficiency advantages will continue to create meaningful upgrade and greenfield opportunities for Sandvine."
