In the last six months, sales increased 39% as compared to the previous six months

February 12, 2010

2 Min Read

VICTORIA, British Columbia -- Vecima Networks Inc. ("Vecima" or "the Company") (TSX:VCM), today reported its fiscal 2010 second quarter financial results for the three months and six months ended December 31, 2009. (All dollar amounts are in Canadian funds unless otherwise stated.)

"Vecima's second quarter results show continued recovery," said Dr. Surinder Kumar, Chairman and CEO. "In the last six months, our sales increased 39% as compared to the previous six months. The introduction of leading edge new products contributed to this positive momentum."

Recent operational highlights:

- in January 2010, we announced that Vecima had signed a multi-year worldwide supply agreement with a major networking company to private label and exclusively sell a platform providing secure High Definition (HD) video. Under the terms of the agreement, Vecima will retain the rights to sell the platform directly to a single leading US Multiple Service Operator (MSO). The new cable network product is designed to provide cable system operators with market leading technology delivering HD digital video streams in a secure format connecting directly to newer flat panel TVs, eliminating the need for an additional Digital Set Top Box. The result is a cleaner and more reliable installation offering a broader range of video services and a simplified user experience. This new technology is highly desired by the hospitality industry, hospitals, schools, universities and other institutions because it streamlines infrastructure requirements and reduces costs. Driven by the upcoming large scale transition to HD in hotels, the market is expected to grow to a cumulative $600 million worldwide over the next ten years and creates opportunities for operators to deploy all-digital services to new market segments. In return for providing this customer the exclusive right to sell this product, the contract calls for a minimum annual revenue of $10 to $15 million. This product will start shipping in the first half of calendar 2010, ramping up rapidly thereafter;

- also in January 2010, we announced that Vecima had sold a portion of its wireless spectrum asset to a Canadian wireless internet service provision company. The wireless spectrum covers a medium population density market in central Canada. Under the terms of the agreement, Vecima sold about 6% of the Company's total wireless spectrum holdings for approximately $2.3 million. As previously announced, part of Vecima's growth strategy involves maximizing and monetizing the value of our non-core assets, such as some real estate and wireless spectrum holdings. In line with this strategy, the Company has sold real estate in Victoria, BC and Yorkton and Saskatoon, SK for approximately $5.2 million with a capital gain of approximately $2.1 million;

Vecima Networks Inc. (Toronto: VCM)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like