Shares of Sandvine (TSX:SVC) are down today after the company reported its Q2 revenue would be lower than expected.
Management says it now thinks second quarter revenue will come in between (U.S.) $28-million and $28.5-million. The street consensus prior to today was $33.8-million.
“The timing of closing certain large deals created variability in our quarterly results but we believe that these opportunities will close soon,” said CEO Dave Caputo. Also, as we have discussed on previous conference calls, we are seeing more customer acceptance tests in contracts, and in the second quarter this resulted in the recognition of certain revenue being deferred to future periods,” said Dave Caputo, Sandvine’s president and chief executive officer. “In the past two years we have seen our revenues grow, but in both of those years revenue was higher in the first quarter than second quarter. We remain excited about our prospects for 2015.”
Sandvine separately today announced that it had won over $8-million in follow-on orders from existing customers.
In April, Sandvine announced its tenth consecutive profitable quarter. The company earned (U.S.) $10.2-million on revenue of $32.4-million in its Q1, 2015, up from $7.5-million in earnings on a $31.5-million topline in the same period a year prior.
At press time, shares of Sandvine were down 8.9% to $4.01.