VICTORIA – Vecima said that the strengthening Canadian dollar was partially to blame for a 30% drop in its profits.
For the third fiscal quarter ended March 31, 2010, the manufacturer and cable operator reported a net income of $871,000, compared with $1.2 million in the same period in 2009.
But revenue was up 49% to $30 million compared to $20.1 million in the same quarter last year. Operating expenses for the three month period were $10.7 million, or 36% of sales, compared to $8.3 million, or 41% of sales, for the three months ended March 31, 2009.
Chairman and CEO Dr. Surinder Kumar called the results “an indication of continued recovery and is in line with a general strengthening of forecasts”.
Gross margin in the third quarter decreased to 35%, providing a gross profit of $10.5 million, compared with a gross margin of 48% for the same period last year that provided a gross profit of $9.6 million. The company said that the decline was driven by the mix of products manufactured and by the strengthening of the Canadian dollar since last year.
