WATERLOO, Ont. – Sandvine Corp. (TSX:SVC) stock bounced close to a 52-week high Thursday after the tech company reported its fourth-quarter revenue jumped 31 per cent from a year earlier and it beat analyst profit and revenue estimates.
The Waterloo, Ont.-based technology company, which reports in U.S. currency, had $27.5 million in revenue and $6.5 million, or 4.6 cents per share, of net income.
That was up from $20.9 million in revenue and a $2.1-million loss in the year-earlier quarter.
During the three-month period ended Nov. 30, Sandvine recorded a one-time reduction in operating expenses amounting to $3.8 million. The special item was related to funding for a project under Ontario’s Next Generation of Jobs Fund.
Analysts had been looking for Sandvine to generate $23.4 million of revenue and essentially break even during the quarter.
The company’s stock jumped as high as $1.87 after Toronto market opened, a penny short of the 52-week high set on May 2. The shares gave up some gains later but were still up 23 per cent, or 20 cents per share, at $1.75 at midday.
The company’s technology is designed to help operate communications networks efficiently.
“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.”
Note to readers: This is a corrected story. A previous version reported incorrect figures for the year-earlier period.