Scotia'a Recent Update .Recent Update Text as of 1APR15 Sandvine is scheduled to release Q1 earnings before markets open on Thursday,
April 9th. A call is scheduled for 8:30 a.m. at 1-866-215-5508, Passcode:
. 39310439 Expect Q1 revenue of $32.8M and EPS of $0.04. Despite fewer major order
announcements compared with Q1 last year, we believe Sandvine will still deliver
YOY growth in Q1; however, we expect profitability to be slightly down due to
traction of the PTS 32000 driving a larger proportion of hardware sales.
Furthermore, we expect opex to grow as the company looks to build out its sales
team. We are forecasting net cash to grow $5.5M to $156.7M ($1.05 per share). We
also believe share repurchases slowed substantially compared with last quarter
as the company looks to invest back into the business. . Anticipate continued YOY revenue growth in Q2 with sales of $31.6M, EPS of
$0.03. We believe the PTS 32000 will continue to be the main driver of growth
over the quarter. Opex is also expected to show continued YOY growth in advance
of the key 2H/15. We anticipate profitability to remain flat YOY and for the
company to end the quarter with $158.7M in net cash. . Maintain Sector Outperform. Sandvine is expected to show accelerating revenue
growth over the year on new product adoption. The shares also trade at a
discount to peers and to historical levels.