Sandvine (TSX:SVC) has just reported its Q4, 2012 and fiscal year results.
The 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.
“We are pleased with fourth quarter results as they demonstrate ongoing progress in revenue growth and profitability,” said Dave Caputo, Sandvine’s President and CEO. “Total revenue and wireless market revenue were at record levels, driven by large initial orders from two new Tier 1 customers and large expansion orders from major existing customers, which has been a key area of focus for us in 2012.”
Earlier this week, Cormark analyst Richard Tse said he expected that Sandvine’s Q4 would demonstrate that management is beginning to turn things around, and was on its way to a recovery in 2013.
The numbers, however, were better than even he expected. He thought Sandvine would lose $0.01 per share on revenue of $22-million in its Q4.
Tse said he believed a string of recent good 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, would show that the company had laid the foundation for a reversal. In a research update to clients Tuesday morning, Tse reiterated his BUY rating and $2 target on Sandvine.
At press time, shares of Sandvine were up 14.2% to $1.77.