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Sandvine Reports Q3 2011 Results

Waterloo, Canada; October 6, 2011 – Sandvine, (TSX:SVC; AIM:SAND) a leading provider of intelligent network policy control solutions for fixed and mobile operators, today reported that revenue grew to a record $25.6 million in its third quarter of 2011. Revenue was up by 7% compared to the previous quarter (Q2 2011: $24.0 million) and up by 10% compared to Q3 2010 (Q3 2010: $23.3 million). The Company recorded GAAP net income of $522,000 (non-GAAP1 net income: $1.5 million). All results are reported in U.S. dollars.

The DSL and wireless markets, which represented 48% and 32% of revenues respectively (cable: 18%), continue to fuel Sandvine’s revenue growth. During the third quarter, the Company also achieved record revenue of $10.7 million from the EMEA region, which represented 42% of revenue (NA: 33%; CALA: 13%; APAC: 12%).

Sandvine added 12 new service provider customers in the third quarter, including eight wireless customers. Year-to-date, Sandvine has added 37 customers (including 19 wireless customers), well ahead of the 26 total customers added in FY 2010.

“In a given quarter approximately 80% of our order value typically comes from follow-on business from existing customers. The accelerated pace of new customer wins this year gives us an excellent opportunity to drive follow-on business in the future,” said Dave Caputo, Sandvine's President and CEO.

FINANCIAL HIGHLIGHTS (All amounts are in U.S. dollars)

Millions of dollars, except per share data and where otherwise indicated

Q3
2011

Q2
2011

 Change

Q3
2010

 Change

Revenue

25.6

24.0

7%

23.3

10%

Gross Margin percent

76%

77%

-1pp

74%

2pp

R&D, SG&A

16.6

16.1

3%

13.2

25%

Net Income (Loss)

0.5

0.1

729%

1.9

-73%

Diluted Earnings (Loss) Per Share

0.004

0.000

900%

0.014

-71%-

Non-GAAP1 Income (Loss)

1.5

1.0

49%

2.8

-47%

Non-GAAP1 Diluted Income (Loss) Per Share

0.010

0.007

43%

0.020

-50%

Sandvine’s cash, cash equivalents and short term investments balance at the end of the second quarter remained strong at $75.1 million, which was down from comparable periods primarily due to changes in working capital and capital asset additions.

Other highlights of Sandvine’s third quarter include:

  • Launched a Real-Time Entertainment Dashboard for its Network Analytics product;
  • Released version 4 of its Usage Management product;
  • Demonstrated LTE-readiness through work with four existing customers on the LTE path.

CONFERENCE CALL

The Company will discuss the financial results and business outlook on a conference call at 8:30 a.m. Eastern time (1:30 BST) today. A webcast will be available on Sandvine’s website.

Local dial-in number 416 644 3414
Toll-free North America 800 814 4859
Toll-free United Kingdom 0800 358 5263

To download the complete results in PDF format (~128kb) please click the link below:
[download release]

A replay of the call will be available at 416-640-1917 or toll-free at 877-289-8525 (passcode 4474688#) from approximately 10:30 a.m. Eastern time today through October 13.

ABOUT SANDVINE

Sandvine’s network policy control solutions focus on protecting and improving the quality of experience on the Internet.

Our award-winning network equipment and software helps DSL, FTTx, cable, fixed wireless and mobile operators better understand network traffic, manage network congestion, create new services and revenues, mitigate traffic that is malicious or undesirable to subscribers, deliver QoS-prioritized multimedia services and increase subscriber satisfaction. With well over 200 service provider customers in more than 85 countries serving hundreds of millions of broadband and mobile data subscribers, Sandvine is enhancing the Internet experience worldwide. For more information, please visit www.sandvine.com

INVESTOR RELATIONS CONTACT
Rick Wadsworth
Sandvine
+1 519 880 2400 ext. 3503
rwadsworth@sandvine.com

MEDIA CONTACT
Sacha DeGroot
Sandvine
+1 519 880 2232
sdegroot@sandvine.com

AIM NOMAD
Andrew Chubb/Simon Bridges
Canaccord Adams Limited
+44 0207 050 6500

CAUTION REGARDING FORWARD LOOKING INFORMATION

Certain statements in this press release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Statements related to Sandvine’s projected revenues, earnings, growth rates, revenue mix and product plans are forward-looking statements as are any statements relating to future events, conditions or circumstances. The use of terms such as “may”, “anticipated”, “expected”, “projected”, “targeting”, “estimate”, “intend” and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

UPDATED : 2013-07-04 11:18:10