WATERLOO, ON, Jan. 15, 2015 /CNW/ - Sandvine, (TSX:SVC.TO - News) a leading provider of intelligent network policy control solutions for fixed and mobile operators, today reported revenue of $34.2 million for its fourth quarter of 2014 and net income of $8.1 million. All results are reported in U.S. dollars under International Financial Reporting Standards (IFRS), unless otherwise specified.
Sandvine's annual revenue for fiscal 2014 increased by 16% to $123.4 million (FY 2013: $106.5 million) and annual net income grew 78% to $23.0 million (FY 2013: $12.9 million), or $0.15 per diluted share.
FINANCIAL HIGHLIGHTS (All amounts are in U.S. dollars)
| | | | |
| Millions of dollars, except per share data and where otherwise indicated | Q4
2014 | Q4
2013 | Change |
| Revenue | 34.2 | 30.8 | 11% |
| Gross Margin percent | 75% | 75% | nil |
| Expenses2 | 15.6 | 12.6 | 24% |
| Net Income | 8.1 | 5.6 | 43% |
| Diluted Earnings Per Share | 0.053 | 0.040 | 33% |
| Non-IFRS Income1 | 8.4 | 5.9 | 42% |
| Non-IFRS Diluted Earnings Per Share1 | 0.055 | 0.042 | 31% |
| 1 See Table 1 below regarding non-IFRS financial measures |
| 2 During the three months ended November 30, 2014, the Company recognized $1.9 million of non-refundable investment tax credits, which reduced operating expenses in the period, compared to $4.3 million recognized in the same period of last year. These accounting adjustments resulted in corresponding increases in current income tax expense in the respective period but had no impact on net income and did not represent current cash taxes. During Q4 2013, the Company also recognized $1.4 million of other government assistance that further reduced operating expenses in that quarter. |
Other Q4 2014 results highlights:
- Revenue by access technology market: cable 41%; wireless 39%; DSL 19%
- Revenue by geography: NA 49%; EMEA 23%; APAC 17%; CALA 12%
- Revenue by sales channel: direct 52%; reseller 48%
- Cash, cash equivalents and investments: $151.1 million
- Customers: Won 8 new service provider customers
"This was an excellent year for Sandvine. We finished 2014 with record quarterly revenue. I am pleased that we managed to improve profitability for the year while continuing to invest in our business and launch industry-leading new products like the PTS 32000," said Dave Caputo, Sandvine's President and CEO. "We won 36 new customers in 2014, saw large existing customers expand their implementations, and continued to help operators launch some of the world's most innovative new service tiers – a trend we expect will continue in 2015."
Since the last quarterly results announcement, Sandvine: