Vecima Networks Inc. (TSX:VCM) today announced that its unaudited Financial Statements and Management’s Discussion and Analysis for the three months and nine months ended March 31, 2007 have been filed on SEDAR. All dollar amounts are in Canadian dollars.

  • Total revenue in the third quarter of fiscal 2007 was $24.1 million, a quarterly sales record for Vecima. Total assets have grown 15% over the nine months to March 31, 2007 surpassing $100 million. Revenue increased 16% to $67.4 million in the nine months ended March 31, 2007 from $58.1 million in the same period last year.
  • Vecima’s net income for the three months ended March 31, 2007 increased 11% to $2.5 million from $2.2 million in the three months ended December 31, 2006. In the nine months ended March 31, 2007, net income increased 63% to $12.9 million from $7.9 million, an increase of 20¢ per share, as compared to the same quarter last year as a result of the extraordinary gain on acquisition.
  • Shareholders’ equity increased to $88.6 million at March 31, 2007, as compared to $76.4 million at June 30, 2006. The increase was a result of operating profits, the purchase of capital assets and the acquisition of WaveRider Communications (Canada) Inc. (“WaveRider”) in the first quarter of fiscal 2007.
  • We have more than doubled our research and development expense to $5.6 million in the nine months ended March 31, 2007 from $2.6 million in the same period last year. Our sales and marketing costs are up 46% to $3.1 million year-to-date compared to $2.1 million last fiscal year. The increases were predominantly for new personnel to take advantage of growth opportunities. These strategic expenditures in excess of our revenue growth resulted in a net margin just outside our target range at 9% of sales compared to 14% in the nine-month period last year. In the nine months ended March 31, 2007, we recorded an extraordinary gain from the acquisition of WaveRider that added 30¢ per share to earnings after taxes bringing the net income per share to 58¢ per share compared to 38¢ per share for the same period last year.
  • Gross margin was 40% for the third quarter, slightly above the high end of our business model of 35% to 39%, and 38% for the nine months ended March 31, 2007.