[back to press releases]

Sandvine Reports Q2 2009 Results

Waterloo, Canada; July 9, 2009 – Sandvine Corporation, (TSX:SVC; AIM:SAND) a leading provider of intelligent broadband network solutions for DSL, cable, FTTx, fixed wireless and mobile operators, today reported second quarter fiscal 2009 revenue of $15.2 million, which is 37% higher than the same quarter last year and 18% lower than Q1 2009 revenue.

“While a sequential decline in Q2 revenue is consistent with Q1 benefiting from certain orders coming in earlier than expected, it is still disappointing. At the same time, our year-to-date results have kept us on track for growth in 2009,” said Dave Caputo, Sandvine’s president and chief executive officer.”

Second quarter 2009 net loss was $5.6 million, or $0.042 per diluted share. On a non-GAAP1 basis, which excludes certain non-cash items, the Company’s net loss was $4.4 million, or $0.033 per diluted share. A reconciliation of GAAP to non-GAAP1 results is included as Table 1. The Company’s cash and marketable securities at May 31, 2009 totaled $90.0 million.

In the second quarter of 2009, Sandvine won nine new service provider customers. Eight of the new customers were secured through reseller partners, with one win coming through a new global distribution agreement with Nokia Siemens Networks. In all, over 40% of revenue came through reseller partners. In the second quarter, the Company recognized record revenue from the wireless market, which for the first time was the largest source of quarterly revenue.

“As fixed line and wireless networks converge, it will be increasingly important to offer network policy control solutions that add value across all types of access networks,” added Caputo. “Sandvine leads the cable broadband market, while the DSL market has become our largest by customer count. We believe that this success, together with our growing strength in wireless, will position us as a leader as fixed-mobile network convergence is realized.”

FINANCIAL HIGHLIGHTS (All amounts are in Canadian dollars)


Millions of dollars, except per share data and where otherwise indicated

Q2 2009

Q2 2008

Change

Q1 2009

Change

Revenue

15.2

11.1

37%

18.6

-18%

Gross Margin percent

76%

77%

-1pp

76%

-

R&D, SG&A

14.7

12.1

22%

14.3

3%

Net Loss

(5.6)

(4.6)

  

(4.8)

 

Non-GAAP1 Loss

(4.4)

(3.4)

  

(1.2)

 

Diluted Loss Per Share

(0.042)

(0.034)

  

(0.035)

 

Non-GAAP1 Diluted Loss Per Share

(0.033)

(0.025)

  

(0.009)

 

Sandvine’s year-to-date revenue was $33.8 million, up 74% from $19.4 million for the comparable period of fiscal 2008. Year-to-date non-GAAP net loss was $5.6 million (GAAP basis: $10.4 million), compared to $9.3 million (GAAP basis: $11.6 million) for the comparable period of fiscal 2008.

STRATEGIC UPDATE and OUTLOOK

Sandvine is focused on growing its service provider customer base and the number of broadband subscribers they represent. The Company has over 160 service provider customers in 70 countries. Together these customers serve more than 80 million fixed line broadband subscribers and a rapidly growing number of mobile data subscribers.

In the second quarter of 2009 Sandvine won nine new customers.

  • By access technology: six mobile data operators, two DSL service providers, and one cableco.
  • By geography: four from EMEA, three from Caribbean and Latin America and one each from North America, and Asia Pacific. Sandvine made initial sales to customers in four new countries.
  • Large customers: initial orders from one new wireless customer that is in the Top 100 worldwide, by voice subscriber count.
  • Sales channel: eight customers were won through reseller partners, including six that were won through our strategic relationships with global network equipment vendors.

CONFERENCE CALL

A copy of the quarterly results are available through the Investor Relations section of Sandvine’s website. The Company will discuss the results and business outlook on a conference call at 8:30 a.m. Eastern time (1:30 BST) today. A webcast will also be available from the Investor Relations section of Sandvine’s website.

Date: July 9, 2009
Time: 8:30 a.m. Eastern (1:30 BST)
Local dial-in number: 416 644 3418
Toll-free North America: 800 732 6179
Toll-free United Kingdom: 00 800 2288 3501

A replay of the call will be available at 416-640-1917 or toll-free at 877-289-8525 (passcode 21309674#) from approximately 10:30 a.m. Eastern time on the day of the call through July 16.

To download the complete results in PDF format (~92kb) please click the link below:
[download release]

ABOUT SANDVINE

Sandvine is focused on protecting and improving the quality of experience on the Internet. Our award-winning network equipment and solutions help cable, DSL, FTTx, fixed wireless and mobile operators better serve their subscribers and understand network trends; offer new services; mitigate malicious traffic; manage network congestion; and deliver QoS-prioritized multimedia services. With customers in 70 countries serving over a hundred million broadband and wireless subscribers, Sandvine is enhancing the Internet experience worldwide. www.sandvine.com

INVESTOR RELATIONS
Rick Wadsworth
Sandvine
+1 519 880 2400 ext. 3503
rwadsworth@sandvine.com

MEDIA CONTACT
Jennifer Ross                          
Sandvine
+1 519 880 2232
jross@sandvine.com

AIM NOMAD
Neil Johnson/Andrew Chubb
Canaccord Adams Limited
+44 0207 050 6500