Q4 2024 Vecima Networks Inc Earnings Call Transcript
Key Points
- Vecima Networks Inc (VNWTF) achieved record revenue of $87.5 million in Q4, up 16% year-over-year and 9% sequentially.
- The company saw strong demand for its EntraOptical 10-gig EPON products, contributing to record segment performance in both Q3 and Q4.
- Vecima Networks Inc (VNWTF) introduced and ramped up deliveries of new products like the ERM3 Remote-PHY devices and EN9000 Generic Access Platform, which are expected to drive future growth.
- The Content Delivery and Storage Segment saw a 10% increase in higher-margin services revenue, contributing to a strong segment gross margin of 56.7%.
- The Telematics segment achieved a 22% year-over-year sales increase in Q4 and maintained a strong gross margin of 67.5%.
- The Content Delivery and Storage Segment experienced an 8% decline in sales year-over-year.
- R&D expenses increased by $1.9 million to $11 million in Q4, reflecting higher capitalized development costs.
- Sales and marketing expenses rose by $700,000 to $8.5 million, driven by higher salaries and trade show participation costs.
- The company recorded a foreign exchange loss of $2 million in Q4, negatively impacting the bottom line.
- Gross margin percentage decreased to 46.5% in Q4 from 50.5% in the same period last year, largely due to a different product mix.
Hello. This is the Chorus Call conference operator. Welcome to Vecima Networks' fourth-quarter fiscal 2024 earnings conference call and webcast.
(Operator Instructions) Presenting today on behalf of Vecima Networks are Sumit Kumar, President and CEO; and Jud Schmid, Chief Financial Officer. Today's call will begin with executive commentary on Vecima's financial and operational performance for the fourth quarter and year-end fiscal 2024 results. Lastly, the call will finish with a question-and-answer period for analysts and institutional investors.
The press release announcing the company's fourth quarter and year-end fiscal 2024 results as well as detailed supplemental investor information are posted on Vecima's website at www.vecima.com, under the Investor Relations heading. The highlights provided in this call should be understood in conjunction with the company's audited annual consolidated financial statements and accompanying notes for the years ended June 30, 2024, and 2023.
Certain statements in this
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