Vecima Further Improves Its Strong Cash Position
VICTORIA – (April 23, 2014) – Vecima Networks Inc. (TSX:VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, today announced that it expects the company’s cash balance to have grown by approximately $5.5 million during its fiscal third quarter ended March 31, 2014 primarily as a result of operating cash flow. Vecima expects its cash at the end of Q3 to be approximately $42 million which is a 15% increase from December 31, 2013. This is a measure of the successful implementation of the company’s previously stated strategy of improving operations, monetizing non-core assets and maximizing shareholder value.
In calendar 2013 Vecima distributed $2.00 per share, or approximately $44.6 million dollars, to shareholders. After the distributions, on December 31 2013, Vecima’s cash balance was $36.5 million.
“Vecima is the market leader in video delivery to commercial properties served by cable MSOs (Multiple System Operators) and the company is well positioned to strengthen the breadth of our products and customers to maintain this strong competitive lead,” stated Sumit Kumar, President & CEO. “Management and the Board continue to explore opportunities to maximize shareholder value, including possible future cash dividends.”
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima’s hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima’s solutions to deliver services to a converging worldwide broadband market, including what are commonly known as “triple play” (voice, video and data) and “quadruple play” (voice, video, data and wireless) services. Vecima’s solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as “the last mile”, by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima’s products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. More information is available at our website at www.vecima.com.
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes”, “may”, “plans”, “will”, “anticipates”, “intends”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about: Vecima’s expectation that its cash balance will grow by approximately $5.5 million during its fiscal third quarter ended March 31, 2014 primarily as a result of operating cash flow; Vecima’s expectation that its cash at the end of Q3 will be approximately $42 million; and, the Company’s intention to continue to explore opportunities to maximize shareholder value, including possible future cash dividends.
In connection with the forward-looking information contained in this news release, Vecima has made numerous assumptions, regarding, among other things: no unexpected expenses arise that adversely impact the Company’s cash balance; and, the present or potential value of the Company’s core technologies, business operations and asset holdings. While Vecima considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Vecima’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: unexpected expenses may arise that adversely impact the Company’s cash balance; the board of directors of the Company may not approve future dividends; there may be no opportunities to maximize shareholder value; unexpected capital obligations may arise that exceed Vecima’s financial resources; the Company’s share price may never increase and may decrease significantly; the Company’s balance sheet, as well as value of its core technologies, business operations and asset holdings may be significantly weaker than currently estimated by the Company; there may be no further growth or profitability of the Company; and, there may be no further development or introduction of new products.
A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading “Risk Factors” in the Company’s Annual Information Form dated September 26, 2013, as well as the Company’s continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
This news release contains information that constitutes a “financial outlook” within the meaning of applicable securities laws. The financial outlook has been approved by management of the Company as of the date of this news release. The financial outlook is provided for the purpose of providing readers with an understanding of the Company’s anticipated cash balance. Readers are cautioned that the information contained in the financial outlook may not be appropriate for other purposes.
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Vecima Networks Inc.
771 Vanalman Avenue, Victoria, BC V8Z-3B8. Canada
Phone: (250) 881-1982 Fax: (250) 881-1974