Vecima Reports Q4 and Fiscal 2020 Results
Vecima Networks Inc. (TSX:VCM) today reported financial results for the three months and fiscal year ended June 30, 2020.
"Fiscal 2020 was an extraordinary year for Vecima as our financial performance soared, we built significant momentum for our next generation Distributed Access Architecture (DAA) and IPTV solutions, and we cemented our industry leadership in the DAA space with a strategic technology acquisition that closed shortly after year-end," said Sumit Kumar, Vecima Networks' President and CEO. "Significantly, we made these strides while navigating the challenges of the COVID-19 pandemic, an achievement that speaks volumes about the commitment and talents of the Vecima team, and underscores our role in providing essential telecommunications infrastructure that the world increasingly depends upon."
"Financially, fiscal 2020 revenues of $96.4 million and fourth quarter revenues of $26.1 million were our best in four years, led by outstanding growth performance from our Content Delivery and Storage (CDS) segment. Full-year CDS segment revenues increased 32% year-over-year to a record $55.2 million, driven by an expanding global base of service providers that are using our MediaScaleX solutions to power their evolution to IPTV. Our CDS segment captured 13 new IPTV customers during fiscal 2020, including three in the fourth quarter, and by year's end, we were actively selling to over 100 customers worldwide. Importantly, this was highly profitable growth, with CDS segment gross profit climbing 38% year-over-year to a record $31.7 million. This, in turn, helped to drive FY2020 consolidated gross profit of $52.3 million and Adjusted EBITDA of $18.3 million, a year-over-year increase of 17% and 123% respectively."
"In our Video and Broadband Solutions (VBS) segment, we accomplished the critical objective of bringing our next generation Entra family of DAA products to market during the year. I am elated to report we achieved material revenue of $5.3 million from our Entra portfolio, secured our first major Tier 1 DAA customer contract, and in the fourth quarter, completed initial product deployments of our industry-leading, multi-core interoperable Entra Remote PHY nodes. Subsequent to year-end, we further advanced our position in the DAA market with our acquisition of Nokia's cable access business, including market-ready Remote MAC-PHY, access controller, and 10Gig EPON products. By consolidating the industry's leading DAA products and IP, Vecima has emerged as the prime holder of DAA technology in the industry."
Video and Broadband Solutions
Content Delivery and Storage
"As we move into FY2021, Vecima is now positioned to achieve strong sales growth for our Entra DAA products, particularly in the latter half of the year as we transition to scale deployment with our lead customers and to initial field deployment with a broader set of cable customers, while concurrently leveraging our newly acquired Remote MAC-PHY and EPON products. In our CDS segment, we anticipate measured sales growth in FY2021 as we consolidate the record-setting business wins of fiscal 2020, including two additional customer wins since year-end, and continue to build the business."
"Overall, we anticipate a very strong fiscal 2021 for Vecima as our multi-year investment, development, and strategic acquisition strategy continues to bear fruit," concluded Mr. Kumar.
As previously reported, Vecima's Board of Directors declared a quarterly dividend of $0.055 per share for the period. The dividend will be payable on November 2, 2020 to shareholders of record as at October 9, 2020.
A conference call and live audio webcast will be held today, September 24, 2020 at 1 p.m. ET to discuss the Company's fourth quarter and full-year results. Vecima's consolidated financial statements and management's discussion and analysis for the year ended June 30, 2020 are available under the Company's profile at www.SEDAR.com, and at www.vecima.com/financial-reports/.
To participate in the teleconference, dial 1-800-319-4610 or 1-604-638-9020. The webcast will be available in real time at http://services.choruscall.ca/links/vecima20200924.html and will be archived on the Vecima website at https://vecima.com/investor-relations/earnings-call-archive/.
About Vecima Networks
Vecima Networks Inc. 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.
Adjusted EBITDA and Adjusted (Loss) Earnings Per Share
Adjusted EBITDA and Adjusted (Loss) Earnings Per Share do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers. Accordingly, investors are cautioned that Adjusted EBITDA or Adjusted (Loss) Earnings Per Share should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company's financial performance or as a measure of its liquidity and cash flows. For a reconciliation of Adjusted EBITDA or Adjusted (Loss) Earnings Per Share, investors should refer to Vecima's Management's Discussion and Analysis for the year ended June 30, 2020.
This news release 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, and the negative of such expressions. Forward-looking information in this news release includes the following statements: we built significant momentum for our next generation Distributed Access Architecture (DAA) and IPTV solutions; we cemented our industry leadership in the DAA space with a strategic technology acquisition; we further advanced our position in the DAA market; by consolidating the industry's leading DAA products and IP, Vecima has emerged as the prime holder of DAA technology in the industry; Vecima continued to build out a powerful and unparalleled portfolio of Entra platforms that are making DAA a reality; Vecima significantly expanded and accelerated its Entra offering; continued to progress development of the TerraceIQ platform, supporting the intent of customers to upgrade their widely deployed ecosystems of the Terrace and TerraceQAM products as networks move to IPTV; as we move into FY2021, Vecima is now positioned to achieve strong sales growth for our Entra DAA products, particularly in the latter half of the year, as we transition to scale deployment with our lead customers and to initial field deployment with a broader set of cable customers, while concurrently leveraging our newly acquired Remote MAC-PHY and EPON products; in our CDS segment, we anticipate measured sales growth in FY2021 as we consolidate the record-setting business wins of fiscal 2020, including two additional customer wins since year-end, and continue to build the business; overall, we anticipate a very strong fiscal 2021 for Vecima as our multi-year investment, development, and strategic acquisition strategy continues to bear fruit.
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 24, 2020, 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.
On Premise Strategies: CBRS and Private LTE
#TECHSUPERSHOW Conference Party