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Sandvine Reports Q1 2011 Results

Waterloo, Canada; April 6, 2011 – Sandvine, (TSX:SVC; AIM:SAND) a leading provider of intelligent network policy control solutions for fixed and mobile operators, today reported revenue of $19.2 million and a GAAP loss of $2.7 million (non-GAAP1: $1.9 million loss) for its first quarter of 2011. All results are reported in U.S. dollars.

“Since last quarter Sandvine has continued to expand the role we play in broadband networks,” said Dave Caputo, Sandvine’s President and Chief Executive Officer. “Our new Policy Traffic Switch 22000 platform is ideal for network edge deployments, where there are unique opportunities to help service providers manage traffic to increase revenue opportunities and run their networks more efficiently. Also, our new joint solution with Citrix gives mobile operators an excellent tool to enhance subscribers’ quality of experience, reduce traffic in the busy mobile packet core network and create innovative new data roaming plans.”

For the first quarter, approximately 59% of the Company’s revenue was derived from the DSL access market, 19% from the mobile access market and 22% from cable network operators. During the first quarter, approximately 71% of total revenues came from outside North America and 64% of the Company’s revenue was earned through reseller partners.

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

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

Q1 2011

Q1 2010

Change

Q4 2010

Change

Revenue

19.2

20.7

-7%

24.2

-20%

Gross Margin percent

71%

75%

-4pp

72%

-1pp

R&D, SG&A

14.3

12.9

10%

14.7

-3%

Net Income (Loss)

(2.7)

0.5

-

0.6

-

Diluted (Loss) Earnings Per Share

0.020

0.003

-

0.004

-

Non-GAAP1 Income (Loss)

(1.9)

1.5

-

1.4

-

Non-GAAP1 Diluted Income (Loss) Per Share

(0.014)

0.011

-

0.010

-

Sandvine’s cash, cash equivalents and marketable securities balance at the end of the first quarter remained strong at $90.0 million (November 30, 2010: $87.9 million).

Sandvine is focused on growing its fixed and mobile service provider customer base and the number of broadband subscribers they represent. The Company has over 200 service provider customers in over 80 countries. Together these customers serve hundreds of millions of subscribers. In the first quarter of 2011 Sandvine had thirteen new customer wins –the highest level in over two years.

  • By access technology: five DSL service providers, four mobile service providers and four cable operators.
  • By geography: six from North America, five from EMEA, one two from Asia Pacific.
  • Sales channel: four customers were won through reseller partners, including three through a strategic relationship with a global network equipment vendor.

Change in Functional and Reporting Currency
Effective December 1, 2010 (the “Conversion Date”), the Company adopted the U.S. dollar (“USD”) as its functional currency. This is the result of the continuing shift that the Company has experienced in the proportion of its revenues, expenses, assets and liabilities which are denominated in USD, and its expectation that this shift will continue in future periods. Prior to the Conversion

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 3416
Toll-free North America: 866 250 4877
Toll-free United Kingdom: 0800 358 5263

To download the complete results in PDF format (~104kb) 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 4427721#) from approximately 10:30 a.m. Eastern time today through April 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 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.

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 : 2013-10-03 12:32:30