Vecima profit up despite tough 2009
Despite weakening in the fourth quarter, and despite lower annual revenue, Vecima Networks reported increased profit for its fiscal 2009.
"Vecima increased profits by 12 percent in the fiscal year ended June 30, 2009, compared to last fiscal year, while experiencing a 5 percent decrease in sales," said Surinder Kumar, chairman and CEO of Vecima.
Net income increased to $13.2 million in Vecima’s fiscal 2009, compared with $11.9 million in 2008. Revenue was $114.2 in 2009, compared with $120.6 million in 2008. Gross margin in fiscal 2009 was 46 percent, compared with 42 percent last year.
“Gross margin in excess of 40 percent is not sustainable in the long run, but we expect to continue to be at the higher end of our traditional model of 35 percent to 40 percent,” Kumar continued.
The company said it has seen decreased demand as its customers conserve cash by delaying capital purchases.
Kumar said, however, that "extended rolling forecasts from some of our major customers are showing some recovery in demand from the recent low point, and, with the new products we have introduced, we expect to return to Vecima's traditional growth mode."
Research and development will continue to be a key focus, and Vecima said additional resources will be committed to sales and marketing, with particular emphasis on further developing distribution channels and marketing programs.