Business
Vecima reports strong first quarter fiscal 2009 financial results
- Revenue up 39%, net income more than triples over first quarter of prior year - VICTORIA, Nov. ...
About this update from Vecima Networks Inc.
[{"type":"text","content":"\n\n\n\n- Revenue up 39%, net income more than triples over first quarter of\nprior year -\n\n\nVICTORIA, Nov. 12 /CNW/ - Vecima Networks Inc. ("Vecima" or "the\nCompany") (TSX:VCM), today reported its financial results for the three months\nended September 30, 2008, the first quarter of Vecima's 2009 fiscal year. All\ndollar amounts are in Canadian funds unless otherwise stated.\n\n\nHighlights for the first quarter included:\n - 39% increase in total revenue to $36.8 million in fiscal 2009\n compared with $26.4 million in fiscal 2008;\n - Increased gross margin to 51% in first quarter compared with 40% last\n year;\n - 276% increase in operating income in the first quarter of fiscal 2009\n to $10.6 million compared with $2.8 million in the comparable period\n in fiscal 2008;\n - 249% increase in net income to $7.8 million in the first quarter of\n fiscal 2009 compared with $2.2 million in the first quarter of fiscal\n 2008;\n - EPS for the quarter of $0.34 compared with $0.10 last year;\n - 64% year-over-year growth in converged wired products reflects rising\n worldwide demand for broadband access;\n - Signing of co-branding agreement with major OEM for Cable Vista Edge\n Decoder leveraging their 90 country sales network;\n - 126 new staff joined the Company during the 12 months ended September\n 30, 2008, up 16% from the same period last year;\n - Subsequent to quarter-end, signing of a multi-year engineering,\n supply and maintenance contract with a leading, US-based cable MSO\n for a new cable network product to support transition to all-digital\n network; and\n - Investment in a 14% position in Redline Communication Group Inc.\n (TSX:RDL) through the facilities of the Toronto Stock Exchange as at\n November 6, 2008.\n\n\n"Ongoing consumer demand for bandwidth, and the associated need for MSOs\nto roll out new products while maintaining service standards, generated\ncontinued demand for OEM transmitter modules and bandwidth recovery products,"\nsaid Dr. Surinder Kumar, Chairman and CEO. "This translated into the strong\ngains reported this quarter as we once again focused on opportunities in our\nconverged wired business. The investments we have made in expanding our\nproduct offering, markets and managerial capacity in the last few quarters are\nbeginning to pay substantial dividends, es...