VICTORIA – Manufacturer and cable operator Vecima said that it is beginning to “see signs of recovery” while reporting its 2010 first quarter financial results.
Revenue increased by 38% to $28.4 million in the quarter ended September 30, 2009, compared to $20.5 million in the previous quarter, while net income dropped to $1.2 million compared to $7.8 million in Q1 last year, largely due to the decrease in sales.
“This is an indication of the initial stages of recovery and is in line with a general strengthening of forecasts," said Dr. Surinder Kumar, chairman and CEO, in a statement.
Gross margin in first quarter was 36% compared to 34% in the fourth quarter of 2009, which Kumar described as within Vecima’s traditional model of 35 to 40%, as compared to the 51% gross margin achieved in the first quarter last year.
Operating expenses were held to $8.0 million in Q1, the same level as in Q1 last year.
The company’s outlooks said that it is “well positioned to capitalize on opportunities as macroeconomic conditions improve”, and that it remains committed to executing its growth strategy and generating continued improvements in financial performance in fiscal 2010.
