VICTORIA, British Columbia--(BUSINESS WIRE)--Vecima Networks Inc. (TSX: VCM) today reported financial results for the three and six months ended December 31, 2021.
FINANCIAL HIGHLIGHTS
| (Canadian dollars in millions except
percentages, employees, and per share data) | Q2FY22 | Q1FY22 | Q2FY21 |
| Revenue | $43.6 | $32.4 | $29.7 |
| Gross Margin | 50.1% | 48.5% | 49.6% |
| Net Income (Loss) | $1.5 | $0.7 | $(3.1) |
| Earnings (Loss) Per Share1 | $0.06 | $0.03 | $(0.14) |
| Adjusted Earnings (Loss) Per Share1,2,3,4 | $0.06 | $0.03 | $(0.14) |
| Adjusted EBITDA2 | $7.4 | $4.3 | $2.5 |
| Cash and Short-term Investments | $10.3 | $17.9 | $20.8 |
| Employees | 497 | 492 | 466 |
| 1 Based on weighted average number of shares outstanding. |
| 2 Adjusted Earnings Per Share and Adjusted EBITDA do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers. See “Adjusted EBITDA and Adjusted Earnings (Loss) Per Share” below. |
| 3 Earnings and Adjusted Earnings Per Share include non-cash share-based compensation of $(0.1) million or $(0.00) per share for the three months ended December 31, 2021, and $(1.2) million or $(0.05) per share for the three months ended December 31, 2020. The non-cash share-based compensation primarily reflects certain performance-based vesting thresholds achieved under the Company’s Performance Share Unit Plan. |
| 4 Earnings and Adjusted Earnings Per Share include foreign exchange loss of $(0.1) million or $(0.00) per share for the three months ended December 31, 2021, and foreign exchange loss of $(1.2) million or $(0.05) per share for the three months ended December 31, 2020. |
“Vecima’s momentum accelerated to the next level in the second quarter as surging demand for our industry-leading Entra Distributed Access Architecture (DAA) and MediaScaleX IPTV solutions drove year-over-year organic sales growth of 47% and resulted in consolidated revenue of $43.6 million, the best quarterly sales result in Vecima’s 33-year history,” said Sumit Kumar, Vecima’s President and Chief Executive Officer.
“Our phenomenal top-line performance carried through with leverage to our bottom line, with second quarter adjusted EBITDA nearly tripling year-over-year to $7.4 million or 17.1% of sales, gross profit climbing 48% to $21.8 million, and adjusted earnings per share growing to $0.06. These are significant achievements that reflect not only the rapidly growing demand for our next-generation products, but also our disciplined approach to OpEx, inventory and supply chain management in a period of supply challenges never-before-seen across the tech sector.”
“As anticipated, second quarter results were led by our Video and Broadband Solutions segment and a record quarter for our Entra DAA portfolio,” added Mr. Kumar. “Despite ongoing supply chain hurdles, Entra revenue grew 130% year-over-year to $18.5 million as we continued to deploy with a growing roster of Tier 1, 2, and 3 customers. A wide array of broadband service providers have begun their transition to Distributed Access Architecture, with Vecima’s pioneering and market-leading DAA technology underpinning the evolution to the multi-gigabit broadband internet era. Our Content Delivery and Storage segment added to the momentum, setting a new quarterly segment record of $15.0 million on robust demand across the full MediaScaleX IPTV product family.”
“While it was already a ground-breaking quarter for Vecima, I want to emphasize that the cable and broadcast industries are still in the early stages of the transformative shift to Distributed Access Architecture and IPTV. We see significantly greater growth potential ahead, including multiple investment cycles for our industry-leading platforms. Accordingly, as we begin to capture the rewards of the first wave of network transformations, we are already investing in the next. This includes not only the numerous new products and feature enhancements we introduced in the second quarter, but also importantly, future-defining advancements we are making, such as our recent DOCSIS 4.0 milestone with Charter Communications. We demonstrated industry-first and leading multi-gigabit symmetrical broadband speeds over widely-deployed and highly-leverageable coaxial cable infrastructure, making 10G a reality.”
“I am pleased to report that we ended the second half in very strong financial shape, with $10.3 million of cash, working capital of $42.5 million, and virtually no debt. Our strong balance sheet, strategic investment in growth inventory, and available liquidity positions us to continue supporting our rapid growth and next-generation technology development as we pursue the truly outstanding opportunities in the worldwide DAA and IPTV markets,” said Mr. Kumar.
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