Shares of Sandvine (TSX:SVC) are up sharply today after the company reported record first quarter earnings of $7.5-million on revenue of $31.5-million. The topline was a 26% improvement over last year’s Q1.
CEO Dave Caputo said continued investment in innovation was the key to the company’s success.
“We are pleased to have had a good start to the year. We reported record quarterly revenue, record wireless market revenue and strong net income, all while introducing four significant product innovations. Our ongoing commitment to product innovation contributed to the strong financial performance in fiscal 2013 and the first quarter of this year. We will continue to innovate in 2014, while remaining focused on revenue growth and profitability,” he said.
After a 2012 in which it struggled though partner changes and product revisions, Waterloo’s Sandvine began to hit its stride last year. With expanded content offerings, carriers and operators are looking to technologies that Sandvine offers, such as Deep Packet Inspection and Service Creation.
In January, Cantor Fitzgerald analyst Blair Abernethy, who has a buy rating on Sandvine, said he expects the company will gradually shift its business to that of a pure software company because industry adoption of network virtualization technology will increase in the years to come.
At press time, shares of Sandvine were up 10% to $3.53 as more than 4.7-million shares changed hands.