VICTORIA B.C. – A %8 decrease in revenue for Vecima Networks’ second quarter of 2014 did not appear to affect the company’s net profits, which increased by %25 to $11.4 million.
For the three months ended December 31, 2013, the broadband equipment provider reported revenue of $21.6 million, down from $23.5 million in the same period in 2012. Adjusted EBITDA in Q4 grew to $4.9 million from $3.9 million compared to the same quarter in 2012.
Terrace Family sales increased to $6.6 million, an increase from the $5.3 million in Q3 2013. As the company’s cable clients transition to all-digital networks, Vecima says Terrace Family sales are expected to be driven by the addition of new MSO customers beginning their all-digital conversions.
Sales from the Terrace QAM product group decreased slightly from $5.5 million in Q1 2014 to $5.3 million in Q2.Vecima said it anticipates sales will moderately decline and then level off due its lead client in this category has completed its initial deployment, as well as declining sales from a second major customer.
Vecima completed a special cash distribution of $1.00 per common share in late December, which meant the company completed the calendar year with $36.5 million in cash.
“Vecima delivered another quarter of strong financial performance in Q2 as we continued to provide market leading business services solutions that our customers use to implement new network architectures that better serve their cable subscribers,” Vecima president and CEO Sumit Kumar said in a statement.
