VICTORIA – Revenues at Vecima Networks increased 26% to $30.4 million in 2008 for the third quarter ended March 31, 2008, compared with $24.1 million in the same quarter a year earlier, according to financials released Thursday.
Net income rose 28% to $3.2 million, partly due to a 23% quarter-over-quarter growth in broadband wireless products.
“Strong consumer demand for additional bandwidth in the last mile led to significant growth resulting in financial and operational performance that exceeded revenue and earnings estimates,” said Vecima Chair and CEO Surinder Kumar. “Vecima’s OEM and MSO partner orders are tracking industry bandwidth trends, while its steady and profit-focused approach to WiMAX, software defined radio and special purpose wireless technologies is beginning to accelerate.”
Revenues were up as sales in the Converged Wired Solutions market increased $3.3 million, or 17%, to $22.1 million in the third quarter compared to the same period a year earlier. The figure equals the sum of sales in the former core market categories of Data over Cable and Digital Video. The Converged Wired Solutions market was driven by strong sales of products such as the Cable Vista edge decorder and the new reverse path demodulator product, as well as increased demand for the company’s upconverter product. Converged Wired Solutions represented 73% of sales in the third quarter.
Broadband Wireless sales increased $1.1 million, or 23%, to $6.1 million in the third quarter compared to the second quarter.
YourLink revenue rose to $2.2 million, or 13%, for the three months ended March 31, 2008, compared with $1.9 million in the three months ended March 31, 2007. Much of the YourLink revenue increase resulted from significant increases in enterprise installations, including deployments for Cargill Inc.’s high-speed data network.
Research and development expenses in the quarter increased 34% to $2.5 million, or 8% of revenue, while sales and marketing expenses were $1.9 million, compared with $1.1 million in the same quarter a year earlier. The increase is mainly due to additional sales and marketing staff along with increased tradeshow activity.
General and administrative expenses in the quarter were $4.1 million compared with $3 million for the same quarter a year earlier.
Vecima stated in its financial results that it’s highly confident that sales growth for the 2008 fiscal year will be within its previously announced 20% to 30% range.
