Cormack says $5.00 target Interesting read!!Dated from July 12/2015 but good view none the less on SVC !!! A diversifying product line has Sandvine (TSX:SVC) ready to face challenges in its market space, says Cormark analyst Richard Tse. On Thursday, Sandvine reported its Q2, 2015 results. The company earned (U.S.) $2.98-million on revenue of $28.6-million. Strength in EMEA and the DSL market was largely driven by over $6-million in revenue related to an order for our market-leading 100-gigabit-Ethernet PTS 32000 platform, said CEO Dave Caputo. We believe that the products performance and efficiency advantages will continue to create meaningful upgrade and greenfield opportunities for Sandvine. Tse says Sandvines second quarter was in line with the lowered expectations that came with its early June warning. He believes the companys explanation that the problem was lumpiness related to the timing of deals. The analyst notes that the sales cycles for Sandvine and competitors such as Allot Communications (Nasdaq:ALLT) have become extended, something he thinks is partly due to the maturation of the deep packet inspection (DPI) or traffic optimization market and the challenge from competing offerings such as encrypted data traffic. But Tse points out that Sandvine has seen this development coming for years and has already broadened its product offering to the point where DPI now represents less than a third of its revenue. Bottom line, we see the current transition in the market as an opportunity that has already begun to see monetization and as such, we continue to like the opportunity in front of Sandvine. says Tse. In the short term, while there is obviously some volatility given the potential for extended sales cycles, we note that Sandvines >1x book-to-bill is positive. In addition, a large $8 MM follow-on order from an EMEA customer with Sandvines new PTS 32000 platform suggests a potential upgrade cycle as service providers look to upgrade their networks to support increasing bit rates from 10GE, 40GE to 100GE (which Sandvines PTS 32000 supports). All told, we believe Sandvine has diversified its product offering recognizing the shifts in the landscape and we believe that puts the company in a strong position to benefit despite the short-term challenges noted above. In a research update to clients Friday, Tse maintained his Buy rating and one year target price of $5.00. Shares of Sandvine closed Friday down 1.9% to $3.53.