April 5, 2012 / 11:24 AM / 6 years ago

UPDATE 2-Sandvine loss widens on inventory write-down

* Q1 loss $6.5 mln vs $2.7 mln year ago

* Says wins $7 mln order from U.S. cable company

April 5 (Reuters) - Sandvine Corp posted a wider quarterly loss as expenses rose and the network equipment maker took an inventory write-down charge.

Waterloo, Ontario-based Sandvine, whose customers include Spanish telecom giant Telefonica and U.S. cable TV provider Comcast Corp, said it won a $7 million order from a tier-1 U.S. cable operator.

Last month, Sandvine adopted a shareholder rights plan with a 20 percent trigger, but said it was not aware of any takeover proposal.

The spiraling growth in mobile data consumption made several Canadian companies such as Sandvine attractive acquisition targets.

Sandvine’s December-February net loss widened to $6.5 million, or 4.7 cents a share, from $2.7 million, or 2 cents a share, a year ago.

In the quarter, expenses rose 9 percent to $16.5 million. Sandvine also took a $3.7 million inventory write-down charge related to one of its older hardware platforms.

Revenue for the company, which added seven customers in the quarter, rose 5 percent to $20.1 million.

Excluding items, the company lost 4.2 cents a share.

Analysts on average had expected a loss of 2 cents a share on revenue of $21.6 million, according to Thomson Reuters I/B/E/S.

Sandvine offers its services to broadband Internet service providers, including those which offer such services through digital subscriber line (DSL), cable, fixed wireless and mobile Internet access technologies.

Shares of Sandvine, which had its market debut in 2006, closed at C$1.63 on Wednesday on the Toronto Stock Exchange. They gained more than a third of their value in the last three months.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below