Vecima Networks Reports Healthy Quarter

VICTORIA, Nov. 14 /CNW/ - Vecima Networks Inc. (TSX: VCM), formerly VCom
Inc., today announced that its unaudited Financial Statements and Management's
Discussion and Analysis for the three months ended September 30, 2006 have
been filed on SEDAR. The highlights provided in this press release should be
read in conjunction with the Company's Annual Report and Annual Information
Form, both dated September 27, 2006 and our unaudited interim consolidated
financial statements and accompanying notes for the three months ended
September 30, 2005.
Our unaudited interim consolidated financial statements and accompanying
notes for the quarter ended September 30, 2006 are available at:
http://www.vecimanetworks.com/invest/latest_finan.html
All dollar amounts are in Canadian dollars. This is the Company's first
earnings report as Vecima Networks Inc., a name that was approved as our new
corporate identity at the Annual and Special Meeting of shareholders held
yesterday in Victoria. The Company's stock symbol on the TSX, VCM, remains
unchanged.

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FINANCIAL HIGHLIGHTS

-  Total revenue for the fiscal 2007 first quarter was $20.1 million,
   representing a 14% increase over total revenue for the three month
   period ended September 30, 2005. Excluding the appreciation effects of
   the Canadian dollar, Vecima's growth would have been in the order of
   22% comparing total revenue for the same periods.
-  Net income in the first quarter of the 2007 fiscal year, including an
   extraordinary gain, was $8.3 million or 37 cents per share up 245%
   over the $2.4 million, or 13 cents per share for the three months
   ended September 30, 2005. Our acquisition of WaveRider (Canada) Inc.
   in July contributed the extraordinary gain of $6.5 million or 29 cents
   per share. Net income before the extraordinary gain was $1.7 million
   or 8 cents per share for the first quarter of our 2007 fiscal year.
-  On October 27, the Toronto Stock Exchange accepted Vecima's Notice of
   Intent to launch a Normal Course Issuer Bid (the "Bid") to acquire for
   cancellation, up to 500,000 Common Shares of the Corporation,
   representing approximately 2.2% of the issued and outstanding Common
   Shares of the Corporation. The Bid will commence on November 1, 2006
   and terminate on October 31, 2007.
-  On November 13, 2005, the Company declared a special dividend of
   4 cents per share payable on December 15, 2006 to shareholders of
   record on December 1, 2006.

OPERATIONAL HIGHLIGHTS

-  Vecima experienced a somewhat 'lumpy' quarter in the three months
   ended September 30, 2006 that resulted in a 9% decrease in total
   revenue compared to the fourth quarter of our 2006 fiscal year. We
   have seen increased orders and have achieved growth momentum. We
   continue to believe that our sales for the year ending June 30, 2007
   will show revenue growth in the 20% to 30% range.
-  Gross margin was 35%, within our traditional model.
-  Shareholders' equity increased 11% in the three months ended
   September 30, 2006 to $85.0 million as compared to $76.4 million at
   June 30, 2006. The increase was a result of operating profits and
   acquisition of WaveRider.
-  Vecima employs 600 personnel as of September 30, 2006, an increase of
   17% from 513 personnel a year earlier.
-  Operating expenses in the three months ended September 30, 2006 were
   24% of total revenue (excluding the 1% of sales in non-cash stock-
   based compensation) as we more than doubled our research and
   development expenditures and increased our sales and marketing
   expenses by 58%. We increased our GAAP research and development costs
   as a percentage of sales to 9% in the three months ended September 30,
   2006 from 5% in the three months ended September 30, 2005. The
   increase in research and development expenses pushed up our operating
   cost level by four percentage point to 24% of sales (excluding stock-
   based compensation expense). This is an increase from the level of 20%
   of total revenue for the three months ended September 30, 2005.
-  In the first quarter of fiscal 2007, Vecima's CableVista Edge decoder
   received approval from a major Multiple Service Operator in the United
   States.
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About Vecima Networks (formerly VCom)

Vecima Networks Inc. 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 three principal
markets: Data over Cable, Broadband Wireless and Digital Video. 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.
At its Annual and Special meeting on November 13, 2006, the Company's
shareholders approved the proposed change in corporate identity from VCom to
Vecima Networks.

Vecima's website is at: www.vecimanetworks.com

Forward-Looking Statements
Certain statements in this news release may constitute forward-looking
statements which involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Company, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. When used in this news release, such statements
are generally identified by the use of such words as "may", "will", "expect",
"believe", "plan", "intend" and other similar terminology. These statements
reflect Vecima's current expectations regarding future events and operating
performance and speak only as of the date of this news release.
Forward-looking statements involve significant risks and uncertainties, should
not be read as guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results will be
achieved. A number of factors including, but not limited to, the factors
discussed under "Risk Factors" in the Company's Annual Information Form dated
September 27, 2006 available on SEDAR (www.sedar.com), could cause actual
results to differ materially from the results discussed in the forward-looking
statements. Although the forward-looking statements contained in this news
release are based upon what management of the Company believes are reasonable
assumptions, the Company cannot assure investors that actual results will be
consistent with these forward-looking statements. These forward-looking
statements are made as of the date of this news release, and the Company
assumes no obligation to update or revise them to reflect new events or
circumstances.