Vecima sees revenue decline 34% in Q3
Vecima Networks recorded revenue of $20.1 million in its third quarter of 2009, ended March 31, a decrease of 34 percent compared with revenue of $30.4 million in the prior-year period.
Net income for the quarter was $1.2 million, down from $3.2 million in the third quarter of 2008.
Recently, Vecima announced that, due to a delay in shipping its new QAM and the general softening of markets, it expected to report revenue for the third quarter in the range of $20 million. Vecima’s revenue for the second quarter of 2009 was $36.9 million.
“Sales in the third quarter were impacted by timing issues, as customers elected to delay capital spending in light of weaker economic conditions; however, our proven and disciplined approach allowed us to remain profitable for the period,” said Surinder Kumar, chairman and CEO of Vecima. “We believe that both the market’s and Vecima’s fundamentals remain sound and that they will support improved performance over the long-term. Consumers continue to demand increasing levels of bandwidth, and service providers will have to oblige them.”
During its third quarter, Vecima introduced the TerraceQAM for specific use in shipping digital video directly to subscribers’ TVs, without going through a set-top box (story here). The company said it signed a multi-year engineering, supply and maintenance contract for the new QAMs with a leading, U.S.-based cable MSO that Vecima declined to identify.
Sales in Vecima’s Converged Wired Solutions market decreased 43 percent, to $12.6 million, in the third quarter. And Broadband Wireless sales decreased 23 percent, to $4.7 million, in the third quarter, compared with $6.1 million for the three months ended March 31, 2008.
Total sales for the first nine months of Vecima’s fiscal 2009 increased by 11 percent to $93.7 million, up from $84.2 million for the nine months ended March 31, 2008.