VICTORIA – Despite a 5% drop in sales, Vecima increased profits by 12% in its 2009 fiscal year end, the manufacturer and cable operator reported Monday
Revenue decreased by 5% to $114.2 million in fiscal 2009, compared to $120.6 million in fiscal 2008. Net income increased by 12% to $13.2 million for the year ended June 30, 2009, compared to $11.9 million in fiscal 2008, while gross margin was 46% compared to 42% last year. Operating profit increased $2.1 million to $19.9 million, compared to $17.7 million in fiscal 2008.
Chairman and CEO Dr. Surinder Kumar said that despite some customers delaying capital purchases, the company expects revenue growth in each of its end-markets from sales of existing and new products this year.
"On the demand side, extended rolling-forecasts from some of our major customers are showing some recovery in demand from the recent low-point and, with the new products we have introduced, we expect to return to Vecima’s traditional growth mode," Kumar said in a statement.
While calling research and development “a key focus”, Kumar also said that additional resources will be committed to sales and marketing, with particular emphasis on further developing distribution channels and marketing programs.
