VICTORIA – Cost cutting at Vecima Networks is beginning to pay off, though the company still reported a net loss for its first quarter of 2012.
For the period ended September 30, Vecima’s net loss was $700,000 on revenues of $20 million. The designer and manufacturer of technology in the broadband equipment market blamed the 5% drop in revenue over the previous quarter on a “weakening” in its legacy product orders.
Gross margin was 37%, down from 38% in the same period last year, while the company's cash position was $7.8 million at quarter end, up from $5.1 million at the end of the fourth quarter of FY2011.
"There are many encouraging signs that point to improvement in Vecima's results in the coming quarters", said CEO Dr. Surinder Kumar, in a statement. "Our drive to profitability is showing positive momentum and we will continue to focus on order execution and containing expenses."
Vecima predicted that its revenue for fiscal 2012 will be in the $90 to $100 million range, and that it is on track to deliver gross profit margin at the top end of its targeted 30% to 40% range.
