Sandvine shares rise on news of Asian orders

Shares of Sandvine (TSX:SVC) are on the move today after the company announced it received over $5 million in Network Policy Control expansion orders for a tier-1 customer in its Asia Pacific sales region. The company says it has now received over $10 million in orders for this customer since August of this year.

Sandvine management says the Asian market is an important place to do well. “Asia’s networks are regarded as some of the most sophisticated and highest-quality in the world,” said Tom Donnelly, COO, Sales and Global Services Sandvine, adding: “The unmatched breadth, flexibility and accuracy of Sandvine’s solutions are helping us meet the market’s rigorous standards.”

The new orders, said Sandvine in a press release today, are an expansion of an existing deployment meant to identify and apply policy on Internet Protocol version 6, which is the latest revision of the Internet Protocol. The orders included units of Sandvine’s high-throughput, high-density Policy Traffic Switch 24000, which will be deployed in the service provider’s network.

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Earlier this month Sandvine reported its Q3, 2012 results. The Waterloo-based company lost $900,000 on revenue of $21.8-million. The numbers were an improvement over Q2′s $18.6-million topline, but not enough to prevent the company’s fourth consecutive quarter in the red.

Sandvine was founded in 2001 by a group that had just sold PixStream to Cisco for $554-million. After Pixstream became the 117th acquisition Cisco did in 2000, it curiously shut the division down just four months later. Sandvine, however, grew because web traffic exploded. As networks became increasingly burdened in the latter half of the last decade, the company’s technology gave service providers a window into the world of their chaotic traffic. The company’s deep packet inspection technology equipped network operators with the critical information they need to make decisions and form policies on service plans, capital investments and premium services. Sandvine now has more than 200 clients in 85 countries, including Cricket, Telefonica and Comcast. These wins helped its topline grow from $51-million in 2008 to $92.7-million in 2010. 2011, however, was a step backward, as revenue came in at just $89.3-million.

At press time, shares of Sandvine were up 4.1% to $1.27.