Sandvine rises after booking $8-million in new orders

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 (Sandvine Stock Quote, Chart, News: TSX:SVC) are up today after yesterday announcing it had received $8-million in orders from three different “Tier 1” operators.

The company said the orders for its policy-traffic-switch platform and software licenses associated with it came from operators in the the Middle East and Africa Asia-Pacific region, Europe, and North America.

A full half of the revenue will come from an unnamed operator in North America. The company notes that five of the six cable operators in North America are customers, and that this order brings sales in the region to $16-million this year. Management says the orders were received in its third and fourth quarters and that some of the product revenue will be recognized in its fourth quarter and into fiscal 2015.

“These orders came from across the globe — a fact that highlights how increased bandwidth usage is an issue that faces operators everywhere,” said COO Tom Donnelly. “With its industry-leading scalability, performance and efficiency, the PTS 32000 gives operators extreme flexibility around how, where and when they will deploy 100GE in their network.”

Surprise order like the ones announced today are the flip side of the “lumpy” revenue critique that has, at times, dogged Sandvine. In its most recent quarter, the issue raised its head again.

On October 10th, Sandvine reported its Q3, 2014 results. The company earned $3.1-million on revenue of $27.9-million, in line with guidance numbers it had lowered. Shares of the company slipped after it issued a September 9th press release in which CEO Dave Caputo said the company expects Q3 revenue would fall somewhere between (U.S) $27.5-million and $28.0-million. Caputo said the culprit was a couple deals the company could not close within the quarter, but expects to finalize in Q4.

At press time, shares of Sandvine were up 3.4% to $3.00.

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