Vecima posted an all-time quarterly revenue record in its fiscal Q3 (the three months ended March 31), as sales of its Entra line of distributed access architecture (DAA) products for the cable industry skyrocketed 142% year on year.
Consolidated revenue of CAD50.9 million was up 60% year on year from CAD31.9 million, while net income rose more modestly from CAD2.2 million to CAD3 million over the same period. Sales of Vecima’s Entra products accounted for around 60% of consolidated sales, coming in at CAD30.8 million. Entra was also responsible for the majority of revenue in Vecima’s Video and Broadband Solutions business, which saw sales rise 70% to $37 million in the quarter. The company’s Content Delivery and Storage business unit brought in $12.5 million in revenue.
To put the Entra achievement into perspective, Vecima CEO Sumit Kumar noted that consolidated revenue stood at just $29.7 million five quarters ago. “As you see, Entra sales on their own surpassed that mark in Q3,” he said.
The company said it’s now engaged with a total of 83 operators about its Entra portfolio, up from 61 the year prior, with 45 of these having placed orders. Kumar pointed to recent wins with Liberty Latin America and Bluepeak in the U.S. as evidence of its momentum.
He added the sales mix between its Remote-PHY, Remote-MAC PHY and fiber-to-the-home (FTTH) products is beginning to shift, with customers increasingly embracing a fully distributed architecture featuring Remote-MAC PHY and FTTH as they prepare for the 10G future.
Out of the 83 engagements it has had with global operators, Kumar said half have been around Remote-MAC PHY, 28% Remote-PHY and 23% 10G FTTH PON.
The CEO said Vecima now has a “very large and growing” backlog of orders, adding sales are expected to keep up a brisk pace over the coming quarters. In order to meet demand, Vecima has stocked up on inventory and has a “war chest” of working capital on hand. While Kumar said Vecima feels confident in its ability to scale output with partners, he noted its growth prospects could be hampered by the availability of supplies.
“The materials are the dictator of how fast we can grow, and capacity wise we’re feeling really good about how far we can take that,” he concluded.