VICTORIA – Despite comments from its CEO saying the company is “not immune to worsening macroeconomic conditions,” manufacturer and cable operator Vecima marked increases in revenue, sales and gross margin for its second quarter, ending December 31, 2008.
Total revenue for the quarter was $36.9 million, an increase of 34% over sales in the second quarter of the previous fiscal year, while total sales increased by 37%, to $73.6 million, up from $53.8 million for the six months ended December 31, 2007.
Sales in the converged wired solutions market increased 33%, to $26.9 million for the quarter, and 47% to $56.2 million for the six months of fiscal 2009, compared with last fiscal year. This is due to “strong demand” for edge decoders from Cable MSOs and data-over-cable internet transmitters to original equipment manufacturers, the press release detailed.
An increase in WiMAX sales and growth in shipment of broadband wireless Internet network equipment helped push broadband wireless sales up 26% to $2.8 million for the quarter, and up 7% to $12.3 million for the first six months of the 2009 fiscal year.
New enterprise installations helped YourLink revenue increase 26% to $2.8 million for the quarter, and up 25% to $5.2 million for the six-month period, compared with $4.1 million in the same period last fiscal year.
Gross margin was 49%, providing a gross profit of $36.0 million for the first six months of the fiscal year, compared with a gross margin of 40% that provided a gross profit of $21.6 million for the first six months months of fiscal 2008, due to “product mix and manufacturing efficiencies.”
"Strong continued demand from bandwidth infrastructure partners like Cisco and Motorola combined with the ongoing need for major cable companies to provide customers with additional bandwidth led to significant growth in the second quarter," said Dr. Surinder Kumar, chairman and CEO, in the release.
"While not immune to worsening macroeconomic conditions, we have been able to effectively manage our operations and generate solid improvements in revenue and gross margin, in excess of historical levels, as we focused on some key opportunities in our converged wired business. Looking ahead, we will focus on executing our multi-prong growth strategy and working closely with key customers in an effort to mitigate volatility in the near-term and generate continued meaningful improvements in our financial performance over the longer-term."
