Sandvine Provides Q1 Revenue Estimate And Customer Update
Waterloo, ON; March 9, 2011 – Sandvine, (TSX:SVC; AIM:SAND) a leading provider of intelligent broadband network solutions for fixed and mobile operators, today announced a preliminary revenue estimate for the first quarter of 2011 ended on February 28, 2011. The Company expects first quarter revenue to be in the range of $US18 million to $US19 million. The Company’s first quarter results are still subject to review by its external accountants and the Company expects to release its full financial results for its first quarter on April 6th.
Sandvine won a total of 13 new service provider customers during the quarter, including the six new customers announced on February 15. Bookings for the quarter were higher than the estimated revenue range.
“While we are disappointed with our Q1 revenue, new customer wins in the quarter were at the highest level in over two years and reflect Sandvine’s continuing market leadership. We did not lose any notable deals in the quarter and I remain excited about our opportunities for 2011 and beyond,” said Dave Caputo, Sandvine’s President and Chief Executive Officer.
Sandvine’s network policy control solutions focus on protecting and improving the quality of experience on the Internet. Our award-winning network policy control 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 service provider customers in more than 80 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
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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.
Many factors could cause the actual results of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements, including, without limitation, each of the following factors, and those factors which are further discussed in the Company’s Annual Information Form (“AIF”), a copy of which is available on SEDAR at www.sedar.com.
- The results discussed in this release are preliminary and remain subject to ongoing review by Sandvine’s auditors and final approval by Sandvine’s Audit Committee and Board of Directors;
- The Company’s revenues may fluctuate from quarter to quarter and year to year depending upon sales cycles, customer demand and the timing of customer purchase decisions;
- The Company’s gross margins may fluctuate from period to period depending upon a variety of factors including product mix in the quarter, competitive pricing pressures and the level of sales generated through indirect channels;
- The Company is dependent upon and expects to continue to derive a large percentage of its revenue from both a small number of key customers and key reseller partners, none of whom are bound to any fixed purchase commitment or exclusivity obligations and could change their buying patterns and/or source of supply at any time, which could have a material impact on the Company’s revenues. The Company’s reseller partners may offer their own products which are competitive with the Company’s products;
- The Company faces intense competition in markets where there are typically several different competing technologies and rapid technological changes. The Company faces the risk of emergence of new technologies that may be either competitive to those of the Company or that change the requirements of the Company’s customers for solutions such as those offered by the Company;
- The Company’s growth is dependent on the development of the market for intelligent broadband network management solutions and the decisions of the Company’s target customers to deploy and further invest in those technologies, which decisions may be impacted upon by changing requirements in the area of broadband network management policies and/or changes in the regulatory framework to which the Company’s customers may be subject. In particular, numerous telecommunications regulators in various jurisdictions have considered or are considering what, if any, regulations might be appropriate with respect to how internet service providers manage the impact of different types of traffic on their networks. These ongoing processes may cause uncertainty in the network investment decisions of the Company’s target customers, and any new rules or regulations that result from these considerations may impact the demand for the Company’s products within various markets, including markets that may not be considering any new regulation but where the Company’s customers may look to other markets for future guidance or trends;
- The majority of the Company’s operating expenses are denominated in Canadian dollars, U.S. dollars and New Israeli Shekels while its revenues and cost of sales are generally denominated in U.S. dollars. The Company’s earnings are impacted by fluctuations in the exchange rates between these and other currencies in which the Company trades.