Q1 Revenue $95.1M; Adjusted EBITDA $18.7M; Adjusted EBITDA Margin 19.7%
Vecima Networks Inc. (TSX: VCM) today reported financial results for the three months ended September 30, 2026.
FINANCIAL HIGHLIGHTS
(Canadian dollars in millions except percentages, employees, and per share data)1 |
Q1 FY27 |
Q4 FY26 |
Q1 FY26 |
Revenue |
$95.1 |
$91.0 |
$69.2 |
Gross Margin |
41.6% |
45.4% |
41.4% |
Net Income |
$5.9 |
$5.4 |
$0.1 |
Earnings Per Share2 |
$0.24 |
$0.22 |
$0.00 |
Adjusted Gross Margin3,4 |
41.9% |
45.0% |
43.3% |
Adjusted Earnings Per Share3,5,6 |
$0.29 |
$0.21 |
$0.04 |
Adjusted EBITDA3 |
$18.7 |
$18.9 |
$10.9 |
Employees |
615 |
601 |
570 |
1) Includes results from continuing operations only, unless otherwise noted. Continuing operations do not include results for Vecima's Telematics segment, which was sold in July 2026.
|
|||
“Our fiscal 2027 year got off to an exceptional start as we again delivered the best quarterly revenue in Vecima's history and achieved significant year-over-year performance gains," said Sumit Kumar, Chief Executive Officer of Vecima. “Our first quarter results included year-over-year consolidated revenue growth of 37.5% and a 72.0% increase in adjusted EBITDA. Importantly, earnings per share climbed sharply to $0.24, exceeding in one quarter the $0.20 we generated in all of fiscal 2026. These results underscore the dramatic increase in demand for Vecima's solutions as wide-scale DAA and IP-enabled commercial video rollouts continue to gain momentum worldwide."
"In our Broadband Access Solutions segment, first quarter sales increased 39% year-over-year, boosted by particularly strong Entra EN9000 sales as we achieved ever-wider penetration with this highly successful platform. Sales of our higher-margin ERM3 Remote-PHY modules under our multi-year DOCSIS RPD agreement with Charter also enjoyed strong growth during the quarter, and Entra Optical continued to benefit from solid uptake from expanding FTTH rollouts."
"In our Content Delivery Solutions segment, which now includes our Terrace Family products, sales grew 32% year-over-year as we commenced volume shipments of our next-generation TerraceIQ platform. This followed the Q1 signing of a major agreement with a Tier 1 North American customer that has selected TerraceIQ for a broad commercial video network modernization spanning thousands of locations. The CDS segment revenues also reflect consistent strength in MediaScale sales as uptake of managed IPTV installations continues to expand."
"In addition to the strong financial results achieved in both the BAS and CDS segments, the first quarter brought continued and significant progress on new platforms. Activity for Entra vCMTS deepened with a growing base of North American and European customers, including increases in deployments, design wins, and engagements globally. We continue to expect Entra vCMTS to become not only an important growth driver for Vecima, but also highly accretive to gross margins due to its software-oriented license model. We also made major strides with multi-gig fiber-access solutions during the period, including XGS-PON and EXS1610 All-PON. Our customers are increasingly bundling cable and fiber access solutions, accelerating adoption of our industry-leading platforms."
“Moving forward, with broad-based demand coalescing across both of our business segments and with multiple product lines ramping through the year, we continue to anticipate fiscal 2027 consolidated revenue growth of 30% to 35%, compared to fiscal 2026. We note that a lead customer has rescheduled certain Entra deliveries originally intended for late Q2, to early Q3. As a result of this shift in delivery timing into calendar 2027, we now anticipate calendar 2026 revenue growth of approximately 20% year-over-year, revised from our prior outlook of 27% to 32%. We anticipate adjusted EBITDA margins of approximately 18% in calendar 2026 and 20% in fiscal 2027."
"We reiterate that our outlook for 30% to 35% fiscal 2027 revenue growth contemplates only the very early stages of contribution from newer products like Entra vCMTS, DOCSIS 4.0 RPDs, XGS-PON and other platforms now entering the market. As we move forward, these new solutions are expected to build on our market-leading portfolio of DAA and IPTV solutions, expanding our growth pathways and providing a long runway for strong and sustained growth," said Mr. Kumar.
BUSINESS HIGHLIGHTS
Financial and Corporate
- Achieved record quarterly consolidated sales results with revenue climbing 38% to $95.1 million in Q1 fiscal 2027, from $69.2 million in Q1 fiscal 2026, and 5% higher than $91.0 million in Q4 fiscal 2026.
- First quarter gross margin and adjusted gross margin (non-IFRS) were 41.6% and 41.9%, respectively, compared to 41.4% and 43.3% in Q1 fiscal 2026 and 45.4% and 45.0% in Q4 fiscal 2026, reflecting changes in product mix.
- First quarter adjusted EBITDA (non-IFRS) grew 72% to $18.7 million, from $10.9 million in Q1 fiscal 2026 and was similar to the record $18.9 million achieved in Q4 fiscal 2026.
- Increased first quarter earnings per share to $0.24, from $nil in Q1 fiscal 2026; Adjusted earnings per share increased to $0.29, from $0.04 in Q1 fiscal 2026.
- Ended the quarter in a strong financial position with working capital of $67.9 million at September 30, 2026, compared to $62.6 million at June 30, 2026. The continued focus on debt reduction significantly lowered total net debt (non-IFRS) to $24.9 million in Q1 fiscal 2027, from $40.7 million in Q4 fiscal 2026.
- On July 31, 2026, Vecima closed the sale of its Telematics business to Lantronix Inc. for total cash consideration of $16.5M, subject to customary working capital adjustments. The purchase price includes $14.5M that was paid at closing and an additional $1.9 million ($2.0 million contractual payable, less a working capital adjustment of $0.1 million) payable by the end of calendar 2026.
Broadband Access Solutions (BAS)
-
The Broadband Access Solutions segment increased first quarter sales by 39% to $76.5 million, from $55.1 million in Q1 fiscal 2026 as cable and fiber broadband rollouts continued to ramp worldwide. First quarter segment sales were similar to the record $77.3 million achieved in Q4 fiscal 2026.
- Continued to ramp product deliveries under the multi-year agreement signed with Charter Communications in Q3 fiscal 2026. The agreement has expanded demand for Vecima's DOCSIS 4.0 Remote PHY Devices (RPD), while also broadening the Company's longstanding partnership with Charter across fiber access.
- Achieved record quarterly cable access products revenue, led by strong Entra EN9000 sales as broad penetration of this industry-first GAP node continued to expand across North American operators. Sales of Entra ERM3 RPD modules also ramped during the quarter.
- Total DAA customer engagements grew to 162 worldwide by end of Q1, an increase of 22 customers year-over-year. Eighty-one of these customers have ordered Entra products, underscoring increased deployment of Vecima's cable and fiber access solutions.
-
Achieved strong commercial momentum with vCMTS, increasing the number of committed, purchasing, and/or deployed vCMTS customers worldwide from Q4 fiscal 2026.
- Meaningful progress towards field trials with Charter (previously announced Cox agreement to deploy Entra vCMTS), Vecima's first Tier 1 North American vCMTS customer.
- Expanded trials with Videotron, another North American Tier 1, as this customer progresses qualification of the platform for a planned network-wide deployment.
- Multiple customers in Europe now deployed and agreement signed with an additional European operator in Q1.
-
Continued progress with 10G/50G next-generation fiber access solutions.
-
North American Tier 1 commenced lab testing of XGS-PON during the period, with dozens of additional operators around the world engaged in deployments, testing, or commercial discussions.
- The Entra XGS-PON & 50G PON platforms open up US$3.2 billion of addressable market while building on Vecima's 10G PON R-OLT portfolio, which has held a commanding global market share lead for the past five years.
- EXS1610 All-PON momentum continued to build with new customer engagements and expanded software feature sets, allowing Telco customers to deploy FTTH services from cabinets or centralized facilities.
- Lead Tier 1 North American operator launched a 7x7 Gbps service tier across its entire Entra PON (R-OLT, shelf, and chassis-based) deployed base for a new high-end broadband speed offering.
-
North American Tier 1 commenced lab testing of XGS-PON during the period, with dozens of additional operators around the world engaged in deployments, testing, or commercial discussions.
- Subsequent to the quarter-end, three of Vecima's next-generation Entra solutions were recognized with four-diamond ratings as part of Lightwave's 2026 Diamond Technology Reviews. These included the Entra vCMTS in the SDN/NFV/Cloud category, the Entra vPON Manager for XGS-PON Platform in the FTTH/Optical Access Platforms category, and the Entra Access Simulators in the Monitoring & Analysis category.
- Launched Entra Intelligence as a new product line with the September 18th acquisition of Akleza's CableDiag proactive network maintenance platform. The platform is currently deployed in more than 25 operator networks, monitoring five million DOCSIS devices. Vecima showcased the new Entra Intelligence platform, including the CableDiag analytics engine and Entra vPON Manager service assurance, at SCTE Tech Expo 2026 in Atlanta.
Content Delivery Solutions (CDS)
- The Content Delivery Solutions segment grew first quarter sales to $18.6 million, an increase of 32% from $14.1 million in Q1 fiscal 2026 and 36% higher than the $13.6 million generated in Q4 fiscal 2026.
MediaScale
- Completed a major hardware modernization for three Tier 2 customers, using MediaScale origin, storage, and CDN solutions.
- Continued to expand a Phase 2 deployment of Vecima’s targeted Dynamic Ad Insertion (DAI) solution with Hotwire Communications. Vecima’s DAI solution enables operators to deliver targeted and personalized advertising experiences, increasing video average revenue per user (ARPU), without necessitating customer rate increases.
- Expanded IPTV platform capacity at a large North American Tier 2 operator with ongoing increases in subscriber uptake.
Terrace Family
-
Vecima's next-generation TerraceIQ commercial video solution continued to gain broad traction with customers.
- Shipped first tranche of TerraceIQ products under agreement signed with a major Tier 1 North American operator in July, nearly tripling Q1 TerraceIQ sales compared to what was achieved in all of fiscal 2026.
- Design wins for TerraceIQ now include five Tier 1s and numerous Tier 2 operators, adding to the significant market share expansion underway for this product category.
- The broad and growing adoption of next-generation TerraceIQ is extending Vecima’s multi-year leadership in commercial video, while positioning the CDS segment to achieve annual growth rates in fiscal 2027 similar to those achieved by the Broadband Access Solutions segment.
Trade and Tariffs
While trade actions had a negligible impact on the 90% of Vecima's sales made to the US in the first quarter of fiscal 2027, the Company continues to closely monitor developments in an unpredictable trade environment. Vecima is one of the few competitors in the industry that fully "owns" its manufacturing process. This provides the flexibility to adapt quickly to changing macroeconomic conditions, including the ability to rapidly transition manufacturing to different countries when needed, an agility Vecima has demonstrated in the past.
Trade policy adjustments between the US and Canada introduced in summer 2026 have had minimal impact on Vecima's margins or competitive position, and the Company's forward outlook reflects the present trade landscape.
CONFERENCE CALL
A conference call and live audio webcast will be held today, Thursday, November 12, 2026 at 1:00 p.m. ET to discuss the Company’s first quarter fiscal 2027 results. Vecima’s unaudited interim consolidated financial statements and management’s discussion and analysis for the three months ended September 30, 2026 are available under the Company’s profile at www.sedarplus.ca, and at https://vecima.com/investor-relations/financial-reports/.
To participate in the Q1FY27 teleconference, dial 1-833-752-3965 or 1-647-849-3105. The webcast will be available in real time at https://event.choruscall.com/mediaframe/webcast.html?webcastid=6wDTmfG9 and will be archived on the Vecima website at https://vecima.com/investor-relations/earnings-call-archive/.
About Vecima Networks
Vecima Networks builds the intelligent infrastructure powering the next generation of connectivity. Through broadband access, content delivery, cloud-native software, automation, and AI-enabled solutions, Vecima helps service providers modernize cable and fiber networks, deliver exceptional broadband and video experiences, and operate more intelligent, efficient networks. As operators evolve toward AI-enabled, software-driven architectures, Vecima’s platforms simplify operations, accelerate innovation, and enable the reliable, high-performance networks that connect homes, businesses, and communities around the world. Learn more at vecima.com.
Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words and phrases such as “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “could,” “estimates,” “expects,” “forecasts,” “projects,” “outlook,” “future,” “growth,” “trajectory,” “momentum,” “visibility,” and similar expressions, including the negative of such expressions, although not all forward-looking information contains these identifying words.
Forward-looking information in this news release includes, without limitation, statements regarding: the Company’s expectation of 30% to 35% consolidated revenue growth in fiscal 2027 as compared to fiscal 2026, and that this outlook contemplates only the very early stages of contribution from newer products such as Entra vCMTS, DOCSIS 4.0 RPDs and XGS-PON; the Company’s revised expectation of approximately 20% revenue growth in calendar 2026 as compared to calendar 2025, which replaces the Company’s previously disclosed outlook of 27% to 32% and reflects the rescheduling of certain product deliveries; the Company’s expectation of an adjusted EBITDA margin of approximately 18% in calendar 2026 and 20% in fiscal 2027; the expected timing of certain Entra deliveries rescheduled by a lead customer from late Q2 to early Q3 of fiscal 2027; the expected ramp of multiple product lines through fiscal 2027; the anticipated continued momentum of wide-scale DAA and IP-enabled commercial video rollouts worldwide; the expectation that Entra vCMTS will become an important growth driver for the Company and be highly accretive to gross margins due to its software-oriented license model; the anticipated progression of Entra vCMTS field trials with Charter, and of Videotron’s qualification of the platform for a planned network-wide deployment; the addressable market expected to be opened by the Entra XGS-PON and 50G PON platforms; the expected scope of a Tier 1 North American customer’s TerraceIQ commercial video network modernization; the expectation that adoption of TerraceIQ will position the CDS segment to achieve fiscal 2027 annual growth rates similar to those of the BAS segment; the expectation that newer solutions will build on the Company’s portfolio of DAA and IPTV solutions, expand its growth pathways and provide a long runway for strong and sustained growth; the expected receipt by the end of calendar 2026 of the $1.9 million balance of the purchase price for the sale of the Company’s Telematics business, and any further post-closing working capital adjustments; the expected effect of trade actions and trade policy adjustments on the Company’s margins, competitive position and outlook; and the Company’s ability to benefit from owning its manufacturing process, including its ability to rapidly transition manufacturing to different countries when needed.
Certain forward-looking information in this news release, including the Company’s expected fiscal 2027 and calendar 2026 revenue growth, adjusted EBITDA margin for calendar 2026 and fiscal 2027, and the expected fiscal 2027 growth rate of the CDS segment relative to the BAS segment, constitutes a “financial outlook” within the meaning of applicable securities laws. This financial outlook is provided to assist readers in understanding management’s current expectations regarding the Company’s prospective financial performance for calendar 2026 and fiscal 2027 and may not be appropriate for other purposes. For purposes of this news release, “calendar 2026” refers to the twelve-month period ending December 31, 2026, “calendar 2025” refers to the twelve-month period ended December 31, 2025, “fiscal 2027” refers to the twelve-month period ending June 30, 2027, and “fiscal 2026” refers to the twelve-month period ended June 30, 2026. Revenue growth outlook is presented on a continuing operations basis and excludes the Telematics business sold in July 2026. The Company’s calendar 2026 revenue growth outlook of approximately 20% updates and replaces the outlook of 27% to 32% previously disclosed in the Company’s news release dated September 24, 2026, which should no longer be relied upon. Except for non-IFRS and other financial measures expressly identified as such, the financial outlook has been prepared using accounting policies that are generally consistent with those expected to be used by the Company in preparing its historical financial statements for the applicable period.
The forward-looking information and financial outlook in this news release are based on management’s current expectations, estimates, forecasts and projections, as well as assumptions that management believes are reasonable as of the date of this news release. These assumptions include, without limitation, assumptions regarding: the timing, volume and conversion of customer purchase orders and forecasts into shipments and revenue; the absence of further material cancellations, deferrals or reductions in anticipated customer orders, including that the product deliveries rescheduled by a customer are shipped and recognized as revenue in early Q3 fiscal 2027 as currently scheduled; continued customer investment in DAA, DOCSIS 4.0, vCMTS, fiber access, commercial video, IPTV and DAI deployments; customer deployment schedules and purchasing patterns; the timing and success of design wins, product qualifications and customer engagements, including the conversion of customer trials and qualifications into commercial deployments on expected timelines; demand for the Company’s Entra RemotePHY, EN9000, Entra Optical, XGS-PON, 50G PON, EXS1610 All-PON, DOCSIS 4.0, vCMTS, TerraceIQ, MediaScale, IPTV and DAI solutions; the Company’s ability to meet product development, interoperability, manufacturing, quality, supply chain and delivery milestones; expected product mix, pricing, gross margins, adjusted EBITDA margins and operating expense levels; the availability and cost of components, labour, materials and manufacturing capacity; foreign exchange rates; the Company’s ability to maintain effective supplier and customer relationships; competitive conditions in the Company’s markets; industry adoption of next-generation access and video technologies; the accuracy of third-party market data and industry estimates underlying the Company’s addressable market estimates; receipt of the deferred consideration for the sale of the Telematics business when due; the absence of material adverse changes in macroeconomic conditions, customer capital spending, industry consolidation, applicable laws, tariffs, trade restrictions, customs treatment, CUSMA treatment or geopolitical conditions; and the continued performance of the Company’s products and platforms in line with customer requirements.
Actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking information and financial outlook in this news release. Important risks and uncertainties that could cause actual results to differ materially include, among others: customer forecasts or purchase orders may be delayed, reduced, cancelled or not converted into revenue as expected, including the possibility that the Entra deliveries rescheduled by a lead customer are further deferred, reduced or cancelled; a significant portion of the Company’s revenue is derived from a small number of customers, and changes in the purchasing or delivery schedules of any of them can materially affect results in a given period; customer network upgrade projects and capital spending may be delayed, reprioritized or reduced; new products or platforms may not achieve expected market adoption, qualification, interoperability or performance milestones; customer trials and qualifications, including those referenced in this news release, may not result in commercial deployments on the expected timelines or at all; the anticipated benefits of the acquisition of the CableDiag platform from Akleza may not be realized; the deferred consideration for the sale of the Telematics business may be subject to further adjustment or may not be received when expected; manufacturing, quality, component availability, supply chain, delivery, product mix, pricing, margin or operating expense outcomes may differ from management’s expectations; demand for DAA, DOCSIS 4.0, vCMTS, IPTV, DAI or other next-generation solutions may develop more slowly than expected; and competitive, foreign exchange, tariff, trade, geopolitical, cybersecurity, intellectual property, regulatory, litigation, customer concentration or general business risks may adversely affect the Company. 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 24, 2026 and in the Company’s other continuous disclosure filings with Canadian securities regulatory authorities, including the Company’s Management’s Discussion and Analysis for the three months ended September 30, 2026 and 2025, available under the Company’s profile at www.sedarplus.ca.
Forward-looking information and financial outlook is not a guarantee of future performance, and readers should not place undue reliance on them. All forward-looking information and financial outlooks in this news release are qualified in their entirety by this cautionary statement as of the date of this news release. The Company disclaims any obligation to revise or update any forward-looking information or financial outlook, or to publicly announce the result of any revisions to any such information, to reflect future results, events or developments, except as required by law.
Non-IFRS measures
This news release contains references to certain Non-IFRS measures that do not have standardized meanings prescribed by IFRS Accounting Standards. Readers should not consider these measures in isolation or as a substitute for analysis of the company’s results as reported under IFRS Accounting Standards. These measures are defined differently by different companies and, therefore, might not be comparable to similar measures presented by other issuers. For information on the composition of these measures, as well as an explanation of how the company uses these measures, refer to Vecima’s MD&A for the periods ended September 30, 2026 and 2025 (available on SEDAR+ at www.sedarplus.ca, and on Vecima’s website at https://vecima.com/investor-relations/financial-reports/, which is incorporated by reference into this news release.
Adjusted Net Income and Adjusted Earnings per Share:
Calculation of Adjusted Earnings per Share (in thousands of dollars) |
|
|
|
|||
Q1 FY27 |
Q4 FY26 |
Q1 FY26 |
||||
Net income from continuing operations |
$ |
5,913 |
$ |
5,382 |
$ |
70 |
Write-down of inventory to net realizable value, net of tax |
|
1,088 |
|
48 |
|
879 |
Loss on sale of assets, net of tax |
|
3 |
|
– |
|
– |
Warrant expense (recovery), net of tax |
|
29 |
|
(241) |
|
104 |
Advisory fees, net of tax |
|
– |
|
99 |
|
– |
Adjusted net income |
$ |
7,033 |
$ |
5,288 |
$ |
1,053 |
Net income per share from continuing operations |
$ |
0.24 |
$ |
0.22 |
$ |
0.00 |
Write-down of inventory to net realizable value, net of tax |
|
0.05 |
|
0.00 |
|
0.04 |
Loss on sale of assets, net of tax |
|
0.00 |
|
0.00 |
|
0.00 |
Warrant expense (recovery), net of tax |
|
0.00 |
|
(0.01) |
|
0.00 |
Advisory fees, net of tax |
|
0.00 |
|
0.00 |
|
0.00 |
Adjusted earnings per share(1)(2) |
$ |
0.29 |
$ |
0.21 |
$ |
0.04 |
| (1) Adjusted earnings per share includes non-cash share-based compensation of $0.3 million ($0.01 per share) for the three months ended September 30, 2026, $0.3 million ($0.01 per share) for the three months ended June 30, 2026, and $0.5 million ($0.02 per share) for the three months ended September 30, 2025. The non-cash share-based compensation primarily reflects certain performance-based vesting thresholds achieved under the Company’s Performance Share Unit Plan. | ||||||
| (2) Adjusted earnings per share includes foreign exchange gain of $0.5 million ($0.02 per share) for the three months ended September 30, 2026, a loss of $0.4 million ($0.02 per share) for the three months ended June 30, 2026, and a gain of $0.9 million ($0.04 per share) for the three months ended September 30, 2025. | ||||||
Adjusted Gross Margin:
Calculation of Adjusted Gross Margin (in thousands of dollars) |
|
|
|
|||
Q1 FY27 |
Q4 FY26 |
Q1 FY26 |
||||
Sales |
$ |
95,111 |
$ |
90,969 |
$ |
69,170 |
Cost of sales |
|
55,588 |
|
49,700 |
|
40,552 |
Gross profit |
|
39,523 |
|
41,269 |
|
28,618 |
Warrant expense (recovery)(1) |
|
– |
|
(325) |
|
132 |
Write-down (recovery) of inventory to net realizable value |
|
286 |
|
(39) |
|
1,171 |
Adjusted gross profit |
$ |
39,809 |
$ |
40,905 |
$ |
29,921 |
Adjusted gross margin |
|
41.9 % |
|
45.0 % |
|
43.3 % |
| (1) Reflects non-cash expense associated with warrants issued to a customer which are recorded as a sales incentives under IFRS Accounting Standards. | ||||||
EBITDA and Adjusted EBITDA:
Calculation of Adjusted EBITDA (in thousands of dollars) |
|
|
|
|||
Q1 FY27 |
Q4 FY26 |
Q1 FY26 |
||||
Net income from continuing operations |
$ |
5,913 |
$ |
5,382 |
$ |
70 |
Income tax expense (recovery) |
|
1,693 |
|
4,299 |
|
(346) |
Interest expense |
|
1,700 |
|
2,223 |
|
2,904 |
Depreciation of property, plant and equipment |
|
659 |
|
619 |
|
659 |
Depreciation of right-of-use assets |
|
346 |
|
344 |
|
385 |
Amortization of deferred development costs |
|
5,844 |
|
5,155 |
|
4,793 |
Amortization of intangible assets |
|
755 |
|
686 |
|
667 |
EBITDA |
|
16,910 |
|
18,708 |
|
9,132 |
Write-down of inventory to net realizable value |
|
1,441 |
|
64 |
|
1,113 |
Loss on sale of assets |
|
4 |
|
– |
|
– |
Warrant expense (recovery) |
|
39 |
|
(319) |
|
132 |
Share-based compensation |
|
346 |
|
338 |
|
517 |
Advisory fees |
|
– |
|
131 |
|
– |
Adjusted EBITDA |
$ |
18,740 |
$ |
18,922 |
$ |
10,894 |
Adjusted EBITDA margin |
|
19.7 % |
|
20.8 % |
|
15.7 % |
Net Debt:
Calculation of Net Debt (in thousands of dollars) |
September 30,
|
June 30,
|
||
Revolving line of credit |
$ |
13,964 |
$ |
13,768 |
Current portion of long-term debt(1) |
|
7,657 |
|
12,847 |
Long-term debt(1) |
|
20,204 |
|
22,116 |
|
|
41,825 |
|
48,731 |
Less: cash and cash equivalents |
|
(12,128) |
|
(2,876) |
Less: lease liabilities |
|
(4,777) |
|
(5,187) |
Net debt |
$ |
24,920 |
$ |
40,668 |
| (1) Current and long-term debt includes lease liabilities on the consolidated statements of financial position. | ||||
Research and Development Expenditures
Calculation of R&D Expenditures (in thousands of dollars) |
|
|
|
|||
Q1 FY27 |
Q4 FY26 |
Q1 FY26 |
||||
R&D expense per consolidated statements of comprehensive income |
$ |
13,422 |
$ |
12,565 |
$ |
11,799 |
Deferred development costs |
|
9,238 |
|
9,440 |
|
7,051 |
Amortization of deferred development costs |
|
(5,844) |
|
(5,155) |
|
(4,793) |
Research and development expenditures |
$ |
16,816 |
$ |
16,850 |
$ |
14,057 |
Percentage of sales |
|
17.7 % |
|
18.5 % |
|
20.3 % |
Discontinued Operations
Discontinued Operations Income Data (in thousands of dollars except common share data) |
|
|
|
|||
Q1 FY27 |
Q4 FY26 |
Q1 FY26 |
||||
Sales |
$ |
569 |
$ |
1,766 |
$ |
1,904 |
Cost of sales |
$ |
132 |
$ |
509 |
$ |
617 |
Gross profit |
$ |
437 |
$ |
1,257 |
$ |
1,287 |
Operating expenses (income) |
$ |
(6,585) |
$ |
3,467 |
$ |
1,115 |
Operating income (loss) |
$ |
7,022 |
$ |
(2,210) |
$ |
172 |
Net income (loss) |
$ |
5,619 |
$ |
(2,279) |
$ |
134 |
Net income (loss) per share – basic and diluted |
$ |
0.23 |
$ |
(0.09) |
$ |
0.01 |
Other Data: |
|
|
|
|||
Adjusted income (loss) per share |
$ |
(0.00) |
$ |
(0.09) |
$ |
0.01 |
Adjusted EBITDA |
$ |
74 |
$ |
502 |
$ |
589 |
Research and development expenditures |
$ |
149 |
$ |
420 |
$ |
349 |
VECIMA NETWORKS INC.
|
||||
| As at | September 30, 2026 |
June 30, 2026 |
||
Assets |
|
|
||
Current assets |
|
|
||
Cash and cash equivalents |
$ |
12,128 |
$ |
2,876 |
Accounts receivable |
|
45,039 |
|
30,821 |
Income tax receivable |
|
358 |
|
1,629 |
Inventories |
|
99,344 |
|
92,382 |
Prepaid expenses and other current assets |
|
7,005 |
|
8,530 |
Contract assets |
|
4,931 |
|
4,620 |
Assets held for sale |
|
– |
|
10,329 |
Total current assets |
|
168,805 |
|
151,187 |
Non-current assets |
|
|
||
Property, plant and equipment |
|
11,814 |
|
10,974 |
Right-of-use assets |
|
4,439 |
|
4,773 |
Goodwill |
|
10,769 |
|
10,812 |
Intangible assets |
|
116,428 |
|
109,859 |
Investment tax credits |
|
21,084 |
|
20,694 |
Deferred tax assets |
|
23,986 |
|
27,004 |
Other long-term assets |
|
255 |
|
250 |
Total assets |
$ |
357,580 |
$ |
335,553 |
Liabilities and shareholders’ equity |
|
|
||
Current liabilities |
|
|
||
Revolving line of credit |
$ |
13,964 |
$ |
13,768 |
Accounts payable and accrued liabilities |
|
60,324 |
|
46,127 |
Provisions |
|
1,646 |
|
1,012 |
Deferred revenue |
|
13,643 |
|
13,325 |
Current portion of financial liability |
|
2,368 |
|
519 |
Current portion of long-term debt |
|
7,657 |
|
12,847 |
Dividends payable |
|
1,337 |
|
– |
Liabilities directly associated with assets held for sale |
|
– |
|
1,001 |
Total current liabilities |
|
100,939 |
|
88,599 |
Non-current liabilities |
|
|
||
Provisions |
|
337 |
|
595 |
Deferred revenue |
|
7,856 |
|
8,132 |
Long-term portion of financial liability |
|
1,819 |
|
– |
Long-term debt |
|
20,204 |
|
22,116 |
Total liabilities |
|
131,155 |
|
119,442 |
Shareholders’ equity |
|
|
||
Share capital |
|
24,152 |
|
24,152 |
Reserves |
|
7,960 |
|
7,614 |
Retained earnings |
|
189,877 |
|
179,682 |
Accumulated other comprehensive income |
|
4,436 |
|
4,663 |
Total shareholders’ equity |
|
226,425 |
|
216,111 |
Total liabilities and shareholders’ equity |
$ |
357,580 |
$ |
335,553 |
VECIMA NETWORKS INC. Consolidated Statements of Comprehensive Income (in thousands of Canadian dollars, except per share amounts) |
||||
| Three months ended September 30, |
|
2026 |
|
2025 |
Sales |
$ |
95,111 |
$ |
69,170 |
Cost of sales: |
|
|
||
Cost of product and services |
|
55,302 |
|
39,380 |
Write-down of inventory to net realizable value |
|
286 |
|
1,172 |
Total cost of sales |
|
55,588 |
|
40,552 |
Gross profit |
|
39,523 |
|
28,618 |
Operating expenses |
|
|
||
Research and development |
|
13,422 |
|
11,799 |
Sales and marketing |
|
10,334 |
|
8,481 |
General and administrative |
|
6,504 |
|
6,114 |
Share-based compensation |
|
346 |
|
517 |
Other expense (income) |
|
74 |
|
(27) |
Total operating expenses |
|
30,680 |
|
26,884 |
Operating income |
|
8,843 |
|
1,734 |
Finance expense |
|
(1,698) |
|
(2,900) |
Foreign exchange gain |
|
461 |
|
890 |
Income (loss) before income taxes |
|
7,606 |
|
(276) |
Income tax expense (recovery) |
|
1,693 |
|
(346) |
Net income from continuing operations |
|
5,913 |
|
70 |
Net income from discontinued operations |
|
5,619 |
|
134 |
Net income |
$ |
11,532 |
$ |
204 |
Other comprehensive income (loss) |
|
|
||
Item that may be subsequently reclassified to net income |
|
|
||
Exchange differences on translation of foreign operations |
$ |
(227) |
$ |
1,162 |
Comprehensive income |
$ |
11,305 |
$ |
1,366 |
Net income per share - basic and diluted |
|
|
||
Continuing operations |
$ |
0.24 |
$ |
0.00 |
Discontinued operations |
|
0.23 |
|
0.01 |
Total net income per share - basic and diluted |
$ |
0.47 |
$ |
0.01 |
Weighted average number of common shares outstanding |
|
|
||
Basic |
|
24,314,594 |
|
24,314,594 |
Diluted |
|
24,314,756 |
|
24,315,495 |
VECIMA NETWORKS INC. Consolidated Statements of Changes in Equity (in thousands of Canadian dollars) |
||||||||||
Share capital |
Reserves |
Retained earnings |
Accumulated other comprehensive income (loss) |
Total |
||||||
Balance as at June 30, 2025 |
$ |
24,152 |
$ |
5,966 |
$ |
181,857 |
$ |
1,594 |
$ |
213,569 |
Net income |
|
– |
|
– |
|
204 |
|
– |
|
204 |
Other comprehensive income |
|
– |
|
– |
|
– |
|
1,162 |
|
1,162 |
Dividends |
|
– |
|
– |
|
(1,337) |
|
– |
|
(1,337) |
Share-based payment expense |
|
– |
|
517 |
|
– |
|
– |
|
517 |
Balance as at September 30, 2025 |
$ |
24,152 |
$ |
6,483 |
$ |
180,724 |
$ |
2,756 |
$ |
214,115 |
Balance as at June 30, 2026 |
$ |
24,152 |
$ |
7,614 |
$ |
179,682 |
$ |
4,663 |
$ |
216,111 |
Net income |
|
– |
|
– |
|
11,532 |
|
– |
|
11,532 |
Other comprehensive loss |
|
– |
|
– |
|
– |
|
(227) |
|
(227) |
Dividends |
|
– |
|
– |
|
(1,337) |
|
– |
|
(1,337) |
Share-based payment expense |
|
– |
|
346 |
|
– |
|
– |
|
346 |
Balance as at September 30, 2026 |
$ |
24,152 |
$ |
7,960 |
$ |
189,877 |
$ |
4,436 |
$ |
226,425 |
VECIMA NETWORKS INC. Consolidated Statements of Cash Flows (in thousands of Canadian dollars) |
||||
| Three months ended September 30, |
|
2026 |
|
2025 |
OPERATING ACTIVITIES |
|
|
||
Net income from continuing operations |
$ |
5,913 |
$ |
70 |
Adjustments for non-cash items: |
|
|
||
Loss on sale of property, plant and equipment |
|
4 |
|
– |
Depreciation and amortization |
|
7,604 |
|
6,504 |
Share-based compensation |
|
346 |
|
517 |
Warrant expense |
|
39 |
|
132 |
Write-down of inventory to net realizable value |
|
1,441 |
|
1,113 |
Income tax expense |
|
– |
|
1,471 |
Deferred income tax expense (recovery) |
|
1,693 |
|
(1,817) |
Interest expense |
|
1,700 |
|
2,904 |
Interest income |
|
(2) |
|
(4) |
Net change in working capital |
|
(5,821) |
|
(1,837) |
Increase in other long-term assets |
|
(5) |
|
(28) |
Increase in provisions |
|
376 |
|
4 |
Income tax received (paid) |
|
1,271 |
|
(3) |
Interest received |
|
2 |
|
6 |
Interest paid |
|
(1,689) |
|
(2,935) |
Cash provided by discontinued operations |
|
281 |
|
665 |
Cash provided by operating activities |
|
13,153 |
|
6,762 |
INVESTING ACTIVITIES |
|
|
||
Deferred development costs |
|
(8,594) |
|
(7,051) |
Capital expenditures |
|
(1,696) |
|
(722) |
Asset acquisition |
|
(700) |
|
– |
Proceeds from disposal of business unit |
|
14,500 |
|
– |
Cash used by discontinued operations |
|
(73) |
|
(243) |
Cash provided by (used in) investing activities |
|
3,437 |
|
(8,016) |
FINANCING ACTIVITIES |
|
|
||
Net draw on (repayment of) revolving line of credit |
|
196 |
|
(2,190) |
Principal repayments of lease liabilities |
|
(476) |
|
(396) |
Repayment of term credit and loan facilities |
|
(194) |
|
(245) |
Repayment of insurance financing |
|
(163) |
|
(175) |
Repayment of EDC loan |
|
(1,333) |
|
– |
Repayment of shareholder loan |
|
(5,000) |
|
– |
Proceeds from EDC loan |
|
– |
|
10,000 |
Cash used by discontinued operations |
|
(4) |
|
(21) |
Cash provided by (used in) financing activities |
|
(6,974) |
|
6,973 |
Net increase in cash and cash equivalents |
|
9,616 |
|
5,719 |
Effect of change in exchange rates on cash |
|
(364) |
|
(594) |
Cash and cash equivalents, beginning of period |
|
2,876 |
|
3,441 |
Cash and cash equivalents, end of period |
$ |
12,128 |
$ |
8,566 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20261112660048/en/
Contacts
Vecima Networks
Investor Relations - 250-881-1982
invest@vecima.com
