Sandvine board approves share buyback

Sandvine today announced that its board has approved an open market stock buyback program for the purchase of up to approximately 12.5 million common shares over a one-year period. The number is nearly 10% of the 138,551,030 shares it had issued and outstanding yesterday. Some analysts lately have noticed that Sandvine (TSX:SVC) trades at a discount to peers such as Procera Networks and Allot Communications. Today, some evidence that Sandvine thinks that valuation gap is simply too wide.

Sandvine today announced that its board has approved an open market stock buyback program for the purchase of up to approximately 12.5 million common shares over a one-year period. The number is nearly 10% of the 138,551,030 shares it had issued and outstanding yesterday.

Shares of Sandvine have bounced back this year after a tough 2012. On January 10th, the company reported its Q4, 2012 and fiscal year results. The Waterloo-based company earned $6.5-million on revenue of $27.5 million in the fourth quarter. The strong finish came after a string of disappointing quarters, and the company ended the year losing $5-million on revenue of $87.9-million.

Sandvine shares, which have climbed for most of the new year, have been buoyed by substantial news, including $4.5-million in follow-on orders from a Western European operator, an order from Tier-1 North American service provider, and the signing of a major Asian service provider on January 8th.

At press time, shares of Sandvine were up 5% to $1.90.

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