VICTORIA, April 28 /CNW/ - Vecima Networks Inc. ("Vecima") (TSX:VCM), a leading provider of equipment supporting broadband access to cable, wireless and telephony networks, today announced that as a result of delay in shipping its new product and general softening of markets, it expects to report revenue for the third quarter ended March 31, 2009 in the range of $20 million. As a result of the lower than anticipated revenue recorded in the third quarter, the Company now believes that it will not be able to meet its fiscal 2009 revenue growth target of 20 to 30 per cent over fiscal 2008, and instead anticipates year over year revenue growth will be flat to down 5 per cent. The Company expects to maintain its record of profitability in both the third quarter and fourth quarter.
"The shortfall in Q3 revenue is reflective of the timing of deliveries for the new network cable product and not of any deterioration in the fundamentals of our business; our solid balance sheet, dynamic product offering, blue-chip customer base, and experienced management team continue to be our proven strengths," said Vecima Chief Executive and Chairman, Dr. Surinder Kumar. "Based on orders in hand and strong customer forecast demand for this new cable product, we remain excited about the prospects for our new product offerings. Because of our new product offerings, as we come out of this general economic slow down, we believe our future annual growth will exceed our traditional range of 20 to 30 per cent."
Vecima intends to hold a conference call and live audio webcast on Thursday, May 14, 2009 at 11 a.m. (ET) to discuss its financial and operational results for the three month and nine month periods ended March 31, 2009. A press release announcing the results will be issued the day of the call, prior to markets opening.
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. www.vecima.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 Report dated September 25, 2008 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.