Sandvine Releases Earnings Report and Adds New Board Member

By Kayvon Ghoreshi
TMCnet Contributing Writer

Sandvine (News - Alert), a provider of broadband network solutions for a range of operators, has had a bit of recent news. The first bit is that Dermot O’Carroll has joined its Board of Directors. His background includes almost 40 years in the telecommunications industry. This experience includes 15 years at Rogers Communications (News - Alert), a stint with Unitel Communications as VP Network Services, 15 years with Bell Canada, and a position as the Canadian representative on the board of the Society of Cable Telecommunications Engineers from 2004 to 2010.

“Sandvine’s customers are some of the most innovative communications service providers in the world. Dermot’s elite experience in the industry will help ensure that the Company’s strategy and focus are guided by the ‘voice of the customer’,” said Roger Maggs, Chairman of Sandvine’s Board of Directors.

The other big piece of news around Sandvine was its Q4 2012 earnings report. Revenue for the fourth quarter came in at about $27.5 million with about $6.5 million being net income. This brought the full year revenue to $87.9 million and a non-IFRS loss of $2.7 million, which translates to a net loss of about $5.0 million. Here are some of the other highlights for the fourth quarter.

• Revenue by access technology market: wireless 48 percent; DSL 35 percent; cable 17 percent
• Revenue by geography: NA 44 percent; APAC 26 percent; EMEA 18 percent; CALA 12 percent
• Revenue by sales channel: reseller 78 percent; direct 22 percent
• Gross margin: 71 percent
• Cash, cash equivalents and short-term investments balance: $74.6 million
• Announced significant initial orders from new Tier 1 customers:
• A converged North American operator deploying service creation, business intelligence and traffic optimization solutions in the fixed and mobile networks
• A converged, multinational, Western European operator group deploying business intelligence and traffic optimization in the fixed line network of its home country
• Since its Q3 results announcement, Sandvine has announced over $18.0 million in expansion orders from major existing customers
• Won nine new service provider customers.

“We are pleased with fourth quarter results as they demonstrate ongoing progress in revenue growth and profitability,” commented Dave Caputo, Sandvine’s President and CEO. “Total revenue and wireless market revenue were at record levels, driven by large initial orders from two new Tier 1 customers and large expansion orders from major existing customers, which has been a key area of focus for us in 2012.”

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Edited by Brooke Neuman