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Sandvine Reports Q4 and Fiscal Year 2011 Results

Waterloo, Canada; January 12, 2012 – Sandvine, (TSX:SVC; AIM:SAND) a leading provider of intelligent network policy control solutions for fixed and mobile operators, today reported revenue of $20.6 million and a GAAP net loss of 3.6 million (non-GAAP1 loss of $2.8 million) for its fourth quarter of 2011. Fiscal year 2011 revenue was $89.3 million and the GAAP net loss was 5.8 million (non-GAAP1:  $2.2 million loss). All results are reported in U.S. dollars.

Q4 2011 highlights:

  • Revenue by access technology market: DSL 21% (FY ’11: 41%); wireless 37% (FY ’11: 34%); cable 40% (FY ’11: 23%); other 2% (FY ’11: 2%)
  • Revenue by geography: NA 51% (FY ’11: 40%); EMEA 23% (FY ’11: 30%); APAC 10% (FY ’11: 19%); CALA 16% (FY ’11: 11%)
  • Revenue by sales channel: reseller 44% (FY’11: 54%) direct 56% (FY’11: 46%)
  • 7 new customers: 4 wireless; 2 DSL ; 1 fibre-to-the-home.
  • Awarded $4.5 million expansion order for Network Analytics by Tier 1 US MSO
  • Won industry award for “Best Implementation of Tiered Data Pricing” for its Usage Management product and another industry award for its Network Analytics product
  • David Thomson, strategy consultant and bestselling author of Blueprint to a Billion joined Sandvine’s Board of Directors

“We added 44 new customers in 2011 and have the largest and most diversified customer base in our industry. We also offer the broadest portfolio of Network Policy Control solutions in the market. In 2012 our goal is to return to revenue growth and profitability by leveraging the value of our newest solutions for existing customers and continuing to add new customers across markets,” 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

Q4
2011

Q3
2011


Change

Q4
2010


Change

Revenue

20.6

25.6

-19.4%

24.2

-14.7%

Gross Margin percent

72%

76%

-4pp

72%

Nil

R&D, SG&A

15.8

16.6

-4.5%

14.7

7.6%

Net Income (Loss)

-3.6

0.5

-

0.6

-

Diluted Earnings (Loss) Per Share

-0.026

0.004

-

0.004

-

Non-GAAP1 Income (Loss)

-2.8

1.5

-

1.4

-

Non-GAAP1 Diluted Income (Loss) Per Share

-0.020

0.010

-

0.010

-

Sandvine’s cash, cash equivalents and short term investments balance at the end of the fourth quarter remained strong at $74 million (August 31, 2011: $75.1 million).

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 3415
Toll-free North America: 877 974 0445
Toll-free United Kingdom: 0800 358 5256

To download the complete results in PDF format (~89kb) 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 4499834#) from approximately 10:30 a.m. Eastern time today through January 19.

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 11:22:25