Sandvine Fact Sheet April 2009
Sandvine Fact Sheet April 2009
Sandvine builds networking equipment and solutions that help broadband and wireless service providers enhance the Internet experience for their subscribers while improving network profitability. Sandvine is based in Waterloo, Ontario and was founded in 2001 by a proven, successful team of networking equipment executives. The company has over 150 DSL, cable and wireless service provider customers in over 60 countries worldwide, representing over 80 million fixed-line broadband subscribers and a rapidly growing number of mobile data subscribers.
Financial Results
TSX: SVC AIM: SAND Shares o/s: 135 million
Sandvine reported record first quarter revenues of $18.6 million in Q1 2009, including record quarterly revenue from the wireless market. Historically over 90% of the Company’s revenue has come from direct sales to the North American cable market. In Q1 2009, Sandvine continued to substantially diversify its revenue base: • • •
First Quarter Highlights ($Cdn)
44% of revenue came from outside of North America. 40% of revenue came from the DSL and wireless markets. 34% of revenue came from indirect sales channels.
• Revenue: $18.6 million • 9 new customers • Record revenue from wireless market • Gross Margin: 76% • Non-GAAP Net Loss: $1.2 million* • Cash balance: $92.6 million, or $0.68 per share
Despite this diversification, Sandvine also had a good quarter in the US cable market, where revenues were higher than they had been in more than a year. Sandvine exited Q1 with $93 million in cash, which is slightly up from the balance on November 30th. In part, the strong performance in Q1 was due to certain businesss occurring faster than the Company had expected.
* Excludes stock-based compensation, amortization and goodwill impairment charge.
Sandvine won nine new service provider customers in the quarter, including initial deployments with two Tier 1 DSL fixed line broadband service providers and with three of the world’s Top 100 wireless operators, by voice subscriber count.
Winning Customers Across Markets Customer Count
Quarterly QuarterlyRevenue Revenue
$Cdn millions
Customer Count
25 Q1
Q2
Q3
Q4
20
80 21.2 20.0
18.6
18.6 Cumulative # of Customers
15.4
15
13.1 11.1
10 6.3
5
9.2 8.1 6.97.4
64
60
17.1
8.3
4.1 3.5
52
50
44
41
40 28
30
54
20 10
1.8
74
72
70
33 18
16
61
59
58
57
54
43 12
8
4
5
Q1-08
Q2-08
4
16
7
0
0 2005
2006
2007
2008
2009
FY-04
FY-05
FY-06
FY-07
Cable
DSL
Wireless
Q3-08
Q4-08
Q1-09
Analyst Coverage Blackmont Capital, Canada Sameet Kanade Canaccord Adams, Canada Dushan Batrovic CIBC World Markets, Canada Todd Coupland Dundee Capital Markets, Canada Arinder Mahal
Solutions Service providers are challenged to understand how their networks are being used, when, and by whom. Our award-winning products give service providers unprecedented visibility into the data traversing their networks. Our solutions use this intelligence to help service providers deliver QOS-prioritized multimedia services, mitigate the proliferation of malicious traffic, manage network congestion and improve customer satisfaction. • Sandvine Service Creation— Service providers have an immediate opportunity to offer new prioritized services for VoIP, gaming and other multimedia applications, implement quota-based service tiers and generate other new revenue streams. • Sandvine Network Integrity— Service providers can protect their networks against unpredictable attacks such as worms, DoS attacks, spam Trojans and DNS server attacks.
GMP Securities, Canada Michael Urlocker M Capital Partners, Canada Husein Kirefu National Bank Financial, Canada Richard Tse RBC Capital Markets, Canada Steve Arthur Scotia Capital, Canada Gus Papageorgiou
• Sandvine Traffic Optimization — Service providers can manage network congestion, prioritize latency-sensitive applications and reduce or defer capital expenditures with subscriber-friendly policies to ensure that all users get a fair share of network resources. • Sandvine Operations Management—Service providers can reduce customer service costs by alerting their network operations teams about application quality trends before subscribers are affected.
Market According to Point Topic, in March 2008 there were approximately 370 million broadband subscribers worldwide – a number that some expect to grow to 600 million by 2011. Sandvine believes that this growth along with the proliferation of new applications being delivered over the Internet and growth in mobile data consumption will continue to create strong demand for the company’s products well into the future. Sandvine targets the top 250 fixed-line broadband service providers and the top 350 wireless operators worldwide. While the cable market was the first to broadly adopt Sandvine’s solutions, today DSL service providers form the largest component of Sandvine’s customer base. Large wireless operators have also begun to deploy Sandvine’s solutions and the company believes that fibre-to-thehome service providers will soon emerge as a strong market for Sandvine, too. Penetration of these new markets is central to the company’s strategy. The company sells its solutions directly, through regional resellers and through strategic partnerships with major networking equipment vendors, including Alcatel-Lucent, Huawei, Motorola and Mitsubishi.
Investor Relations Sandvine Incorporated Waterloo, Ontario (GMT-5) Phone: +1 519.880.2600 Email: [email protected]
Visit www.sandvine.com Copyright ©2009 Sandvine Incorporated. Sandvine and the Sandvine logo are registered trademarks of Sandvine Incorporated. All rights reserved. Last Revised: 2009-05-04
Sandvine builds networking equipment and solutions that help broadband and wireless service providers enhance the Internet experience for their subscribers while improving network profitability. Sandvine is based in Waterloo, Ontario and was founded in 2001 by a proven, successful team of networking equipment executives. The company has over 150 DSL, cable and wireless service provider customers in over 60 countries worldwide, representing over 80 million fixed-line broadband subscribers and a rapidly growing number of mobile data subscribers.
Financial Results
TSX: SVC AIM: SAND Shares o/s: 135 million
Sandvine reported record first quarter revenues of $18.6 million in Q1 2009, including record quarterly revenue from the wireless market. Historically over 90% of the Company’s revenue has come from direct sales to the North American cable market. In Q1 2009, Sandvine continued to substantially diversify its revenue base: • • •
First Quarter Highlights ($Cdn)
44% of revenue came from outside of North America. 40% of revenue came from the DSL and wireless markets. 34% of revenue came from indirect sales channels.
• Revenue: $18.6 million • 9 new customers • Record revenue from wireless market • Gross Margin: 76% • Non-GAAP Net Loss: $1.2 million* • Cash balance: $92.6 million, or $0.68 per share
Despite this diversification, Sandvine also had a good quarter in the US cable market, where revenues were higher than they had been in more than a year. Sandvine exited Q1 with $93 million in cash, which is slightly up from the balance on November 30th. In part, the strong performance in Q1 was due to certain businesss occurring faster than the Company had expected.
* Excludes stock-based compensation, amortization and goodwill impairment charge.
Sandvine won nine new service provider customers in the quarter, including initial deployments with two Tier 1 DSL fixed line broadband service providers and with three of the world’s Top 100 wireless operators, by voice subscriber count.
Winning Customers Across Markets Customer Count
Quarterly QuarterlyRevenue Revenue
$Cdn millions
Customer Count
25 Q1
Q2
Q3
Q4
20
80 21.2 20.0
18.6
18.6 Cumulative # of Customers
15.4
15
13.1 11.1
10 6.3
5
9.2 8.1 6.97.4
64
60
17.1
8.3
4.1 3.5
52
50
44
41
40 28
30
54
20 10
1.8
74
72
70
33 18
16
61
59
58
57
54
43 12
8
4
5
Q1-08
Q2-08
4
16
7
0
0 2005
2006
2007
2008
2009
FY-04
FY-05
FY-06
FY-07
Cable
DSL
Wireless
Q3-08
Q4-08
Q1-09
Analyst Coverage Blackmont Capital, Canada Sameet Kanade Canaccord Adams, Canada Dushan Batrovic CIBC World Markets, Canada Todd Coupland Dundee Capital Markets, Canada Arinder Mahal
Solutions Service providers are challenged to understand how their networks are being used, when, and by whom. Our award-winning products give service providers unprecedented visibility into the data traversing their networks. Our solutions use this intelligence to help service providers deliver QOS-prioritized multimedia services, mitigate the proliferation of malicious traffic, manage network congestion and improve customer satisfaction. • Sandvine Service Creation— Service providers have an immediate opportunity to offer new prioritized services for VoIP, gaming and other multimedia applications, implement quota-based service tiers and generate other new revenue streams. • Sandvine Network Integrity— Service providers can protect their networks against unpredictable attacks such as worms, DoS attacks, spam Trojans and DNS server attacks.
GMP Securities, Canada Michael Urlocker M Capital Partners, Canada Husein Kirefu National Bank Financial, Canada Richard Tse RBC Capital Markets, Canada Steve Arthur Scotia Capital, Canada Gus Papageorgiou
• Sandvine Traffic Optimization — Service providers can manage network congestion, prioritize latency-sensitive applications and reduce or defer capital expenditures with subscriber-friendly policies to ensure that all users get a fair share of network resources. • Sandvine Operations Management—Service providers can reduce customer service costs by alerting their network operations teams about application quality trends before subscribers are affected.
Market According to Point Topic, in March 2008 there were approximately 370 million broadband subscribers worldwide – a number that some expect to grow to 600 million by 2011. Sandvine believes that this growth along with the proliferation of new applications being delivered over the Internet and growth in mobile data consumption will continue to create strong demand for the company’s products well into the future. Sandvine targets the top 250 fixed-line broadband service providers and the top 350 wireless operators worldwide. While the cable market was the first to broadly adopt Sandvine’s solutions, today DSL service providers form the largest component of Sandvine’s customer base. Large wireless operators have also begun to deploy Sandvine’s solutions and the company believes that fibre-to-thehome service providers will soon emerge as a strong market for Sandvine, too. Penetration of these new markets is central to the company’s strategy. The company sells its solutions directly, through regional resellers and through strategic partnerships with major networking equipment vendors, including Alcatel-Lucent, Huawei, Motorola and Mitsubishi.
Investor Relations Sandvine Incorporated Waterloo, Ontario (GMT-5) Phone: +1 519.880.2600 Email: [email protected]
Visit www.sandvine.com Copyright ©2009 Sandvine Incorporated. Sandvine and the Sandvine logo are registered trademarks of Sandvine Incorporated. All rights reserved. Last Revised: 2009-05-04
