Q2-16 Financial Results
July 7, 2016
Dave Caputo
President & CEO
Scott Hamilton
Chief Financial Officer
Forward-looking Information
Certain information presented in this presentation by management of Sandvine
Corporation (the “Company”) that is not historical factual information may
constitute forward-looking information within the meaning of securities laws.
Actual results could differ materially from a conclusion, forecast or projection
contained in such forward-looking information. Certain material factors or
assumptions were also applied in drawing a conclusion or making a forecast or
projection as reflected in such forward-looking information. Additional
information about the material factors that could cause actual results to differ
materially from the conclusions, forecasts or projections in the forward-looking
information, and details regarding the material factors or assumptions that
were applied in drawing such conclusions or making such forecasts or
projections are contained in the Company’s Annual Information Form and in
other filings made by the Company with applicable securities regulators from
time to time, all of which are available through SEDAR at www.sedar.com.
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2013
US$ millions*
Highlights
$33.5 million revenue
2014
2016
$40
33.5
$35
$30
$25
35.0
34.2
30.8
34.2
32.4
31.5
29.728.6
• 17% revenue growth
2015
25.0
27.227.927.3
23.5
$20
$15
• No 10% customers
$10
20 new customers
$5
$0
Q1
Q2
Q3
Q4
US$ 000s
$40,000
$35,000
33,538
$30,000
28,586
$7 million EBITDA
See Note 2
$25,000
$20,000
• 60% growth
$15,000
See Note 1
$10,000
6,977
$5,000
$0
3,988
4,350
Q2 15
Q3 15
Revenue
1
2
• 21% of revenue
2,985
Q4 15
EBITDA
Q1 16
IFRS Income
Q2 16
15 consecutive quarters of profitability
EBITDA is a non-IFRS financial measure. See Non-IFRS Financial Measures slide
Research and development expenses in Q4 15 have been reduced by $16.0 million as a result of the recognition of deferred tax assets related to SR&ED ITCs.
Based on un-audited results
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Revenue Diversification
Based on un-audited results
4
Customer Diversification
TTM
Major Customers
US$ 000s
$40,000
1 reseller
$35,000
1 reseller
1 reseller
$30,000
$25,000
$20,000
1
Customer
24%
76%
3
Customers
14%
1 Customer
10%
1
Customer
13%
87%
10%
2
Customers
11%
1
Customer
22%
100%
13%
77%
67%
76%
$15,000
$10,000
$5,000
$0
Q2-15
Q3-15
All Other Customers
Q4-15
10% Customers
Q1-16
Q2-16
10% Resellers
Based on un-audited results
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Financial Results Overview
US$ 000s
Revenue
Gross Margin
Expenses
Net Income
EBITDA1
Q2-16
Q2-15
$33,538
$28,586
17%
24,885
21,346
17%
74%
75%
-1pp
19,576
18,124
8%
3,988
2,985
34%
(0.028/diluted
share)
(0.020/diluted
share)
40%
6,977
4,350
60%
(0.048/diluted
share)
(0.028/diluted
share)
71%
Q2-16
Cash and investments
1
Change
Q4-15
151,320
145,341
Change
4%
EBITDA is a non-IFRS financial measure. See Non-IFRS Financial Measures slide
Based on un-audited results
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Quarterly Dividend
• C$0.0175 per common share
• Payment date: August 8
• Record date: July 20
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Business Highlights
•
Several innovative deployments of Sandvine’s PCRF, subscriber services,
business intelligence and traffic optimization solution sets - both
traditional and virtual
•
Published “Best Practices for Zero-rating and Sponsored Data Plans
under Net Neutrality”
•
PTS 32000 instrumental in expansion orders for $3 million, and new
customer order for $4 million
•
Initial customers for enhanced Cyber Security offering
•
Initial orders for TCP Accelerator product
•
Release Global Internet Phenomena Report on Latin America and North
America
•
Added Gemma Toner and Osama Arafat to Board
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Non-IFRS Financial Measures
This presentation discloses net income before interest, taxes, depreciation and amortization (EBITDA) and the related per share amounts (EBITDA per
share) for the periods indicated. These non-IFRS financial measure, which are used internally by management to evaluate the Company’s ongoing
performance, exclude the impact of interest, taxes, depreciation and amortization (collectively referred to as “Excluded expenses”). The Company
provides these non-IFRS financial measures as it is the Company’s view that the Excluded expenses either (i) affect the comparability of results from period
to period as the Excluded expenses are not part of its normal day-to-day operations or only impact the current or comparable period and/or (ii) represent
a “non-cash” accounting charge that does not deplete its cash resources. Accordingly, the Company believes that such financial measures may also be
useful to investors in enhancing their understanding of the Company’s operating performance. These non-IFRS measures are not recognized under IFRS and
do not have standardized meanings prescribed by IFRS. Therefore it is unlikely that these measures will be comparable to similarly titled measures
reported by other issuers. Non-IFRS financial measures should be considered in the context of the Company’s IFRS results.
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Thank you
For more information:
Rick Wadsworth, Director, Investor Relations
[email protected]
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