Vecima Expects Record-Breaking Q2 Revenue of $43 to $44 Million
After initial reviews of its second quarter fiscal 2022 performance, Vecima Networks Inc. (TSX: VCM), ("Vecima" or the "Company") announces today that it expects record-breaking sales in the range of $43 to $44 million for the three-month period ended December 31, 2021. This is the highest quarterly revenue in Vecima's entire 33-year history, representing year-over-year quarterly organic growth of between 43% to 45%, and sequential quarter-over-quarter organic growth of between 33% to 35%.
"Swiftly growing demand for our Entra Distributed Access Architecture (DAA) solutions has propelled Vecima's sales to new heights in Q2," said Sumit Kumar, Vecima's President and Chief Executive Officer. "With the cable industry's transition to gigabit speeds via distributed access architecture now underway, customers worldwide are choosing Vecima's DAA solutions to underpin their network infrastructure buildouts. The rapid pace of Entra adoption, paired with strong supply chain management, are driving us to record quarterly sales increases and into the next phase of corporate growth."
"And while this investment cycle is being deployed leveraging existing technology standards, our DAA solutions will support new standards as they evolve," added Mr. Kumar. "For instance, as previously announced, Vecima and Charter Communications recently demonstrated greater than 8.5 Gbps downstream and 6 Gbps upstream on hybrid fiber-coaxial (HFC) cable plant, using next-generation DOCSIS 4.0 System-on-a-Chips for the Remote MACPHY Device and cable modem solutions. The HFC plant remains a huge asset for cable operators, and our recent testing validates the performance and viability of DOCSIS 4.0 and the inherent multi-gig symmetrical capacity of the cable plant."
"Our pace of growth was additionally accelerated by exceptional performance in our Content Delivery and Storage segment," added Mr. Kumar, "with robust demand across the balance of the MediaScaleX product family and a segment record in quarterly sales helping to fuel our momentum."
"While both our revenue results and rate of growth are the best in Vecima's history, Vecima believes this is only the start of an expected multi-year investment cycle, with the market still in the early innings of the broader industry's transformative shift to Distributed Access Architecture and IPTV. Vecima is already firmly established as global industry leader on both technology fronts with winning, market-leading product portfolios. We anticipate a continued acceleration of demand momentum going forward," said Mr. Kumar.
Vecima plans to release its second quarter fiscal 2022 financial statements and management's discussion and analysis pre-market on Thursday, February 10, 2022. The Company will host a conference call at 10 a.m. Eastern Time on the same day to review the results, provide an operational update and discuss recent milestones.
About Vecima Networks
Vecima is a global leader focused on developing integrated hardware and scalable software solutions for broadband access, content delivery, and telematics. We enable the world's leading innovators to advance, connect, entertain, and analyze. We build technologies that transform content delivery and storage, enable high capacity broadband network access, and streamline data analytics. For more information, please visit our website at www.vecima.com.
Cautionary Statement Regarding Preliminary Estimated Results and Forward-Looking Information
Vecima has prepared the preliminary financial information set forth above on a materially consistent basis with its historical financial information and in good faith based upon its internal reporting for the three months ended December 31, 2021. This financial information is preliminary and unaudited and is thus subject to change as the Company finalizes its financial results for the quarter.
This press release also contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events, or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon several estimates and assumptions of management at the date the statements are made. Forward-looking information should not be unduly relied upon. This information speaks only as of the date of this press release.
This press release contains forward-looking information in a number of places such as statements relating to the amount of sales and revenue made by Vecima for the three month period ended December 31, 2021, expectations regarding the growth of Vecima and DAA, performance in Vecima's Content Delivery and Storage segment, expectations regarding continued demand for Vecima's products and the timing of the release of Vecima's second quarter fiscal 2022 financial statements and management's discussion.
Such forward-looking information involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information. A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated September 23, 2021, as well as the Company's continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.
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