VICTORIA, BRITISH COLUMBIA — (Marketwire) — 02/12/13 — Vecima Networks Inc. (TSX: VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, today reported financial results for the three months ended December 31, 2012. All figures are in Canadian dollars and in accordance with International Financial Reporting Standards (“IFRS”) unless otherwise stated.
FINANCIAL HIGHLIGHTS
“Vecima sees strong deployment of our Terrace and Terrace QAM families of products by North America-s largest cable MSOs,” said Dr. Surinder Kumar, CEO of Vecima. “I am pleased to report that gross margin remained 40% or higher over the last two quarters. This continued strength in gross margin is attributable to a transition to higher margin products.”
Dr. Surinder Kumar stated that, “Vecima is in a position where its cash at the end of Q2 plus its realizable value of non-core assets is approaching its current market capitalization. We are working hard to unlock hidden value.”
In comparing the first half of fiscal 2013 to the last six months of fiscal 2012, adjusted EBITDA increased to $8.4 million from $7.3 million despite revenue decreasing from $54.5 million to $48.5 million.
Vecima-s cash position improved from $25.7 million at the end of Q1 fiscal 2013 to $41.4 million at the end of Q2 fiscal 2013. The increase in cash and marketable securities is attributable to cash flow from operations and the further sale of radio spectrum for proceeds of $9.4 million.
MSO BUSINESS SERVICES
Terrace Family
Terrace QAM
CABLE HEADEND
OEM QAM Modules
OEM Return Path Demodulator and CableVista
FLEET MANAGEMENT – FLEETLYNX
BROADBAND WIRELESS
YOURLINK
OUTLOOK
Vecima remains profitable and we expect both operations and asset monetization to continue to contribute to our cash position. We continue to execute on our strategy of monetizing non-core assets and will pursue opportunities to sell non-core assets over the next 18 months.
On January 21, 2013, Vecima proposed a special cash distribution in the form of a return of capital. Following the proposed distribution, we will have a strong balance sheet and will continue to explore opportunities to maximize shareholder value, including the possibility of future cash dividends or distributions.
In light of adjustments to our customers- sales forecasts, we are revising our fiscal 2013 revenue forecast to be in the range of $91 to $98 million. We are managing our costs carefully. With these measures in place, we expect our fiscal year adjusted EBITDA to improve by 20-40% over fiscal 2012.
CONFERENCE CALL
A conference call and live audio webcast will be held on February 12, 2013 at 1 p.m. ET to discuss the Company-s second quarter results. Vecima-s unaudited condensed interim consolidated financial statements and management-s discussion and analysis for the three months ended December 31, 2012 are available under the Company-s profile at , and at .
To participate in the teleconference, dial 1-800-319-4610 or 1-604-638-5340. The webcast will be available in real time at and will be archived on the Vecima website at http://www.vecima.com/events_ir.php.
About Vecima Networks
Vecima Networks Inc. (TSX: VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima-s hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima-s solutions to deliver services to a converging worldwide broadband market, including what are commonly known as “triple play” (voice, video and data) and “quadruple play” (voice, video, data and wireless) services. Vecima-s solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as “the last mile”, by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima-s products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. More information is available at our website at .
Forward-Looking Statements
Certain statements in this press release may constitute forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These statements include but are not limited to statements regarding management-s intentions, belief or current expectations with respect to market and general economic conditions, future sales, future shipping volumes, future cash position, revenue expectations, future costs, future operating performance, plans to sell non-core assets, and plans to continue to explore opportunities to maximize shareholder value, including the possibility of future cash dividends and distributions. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include, but are not limited to, the current significant general economic uncertainty and credit and financial market volatility and the distinctive characteristics of Vecima-s operations and industry and customer demand that may have a material impact on, or constitute risk factors in respect of Vecima-s future financial performance, as set forth under the heading “Risk Factors” in the Company-s Annual Information Form dated September 28, 2012, a copy of which is available at . In addition, although the forward-looking statements in this press release are based on what management believes are reasonable assumptions, such assumptions may prove to be incorrect. Consequently, readers should not place undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Vecima disclaims any intention or obligation to update or revise any forward-looking statements, as a result of new information, future events or otherwise, except as required by law.
Contacts:
Vecima Networks Inc.
Investor Relations
250-881-1982
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