Vecima Issues Revenue Warning

Vecima announces preliminary Q3 revenue numbers; updates fiscal 2009 revenue guidance

April 29, 2009

1 Min Read

VICTORIA, British Columbia -- 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 Networks Inc. (Toronto: VCM)

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