Vecima Provides Business Update

VICTORIA, BC--(Marketwired - July 27, 2017) - Vecima Networks Inc. (TSX: VCM), an experienced designer and manufacturer of innovative network technology solutions, today provided a business update including preliminary information on its fiscal 2017 financial performance and updates on ongoing product development and launches.

Financial Update

Based on preliminary financial information for the fiscal year ended June 30, 2017, Vecima expects its fiscal year 2017 revenue to be within its previously guided revenue range of $70.0 million to $72.0 million. Vecima remained on target despite revenue expectations being based on customer acceptance of a new product upgrade that did not occur, instead achieving higher than forecasted sales in other products. The Company expects that the upgrade acceptance will now occur early in fiscal 2018.

Vecima also expects to report a cash balance at June 30, 2017 of approximately $89.0 million, a $14.9 million increase over 2016.

The Company is also reporting that, subsequent to June 30, it completed the second closing of the sale of its YourLink business in Saskatchewan for proceeds of $8.73 million. This sale marks the conclusion of the divestiture of the YourLink business for total proceeds of $28.73 million.

Product Development and Launches

In June 2017, Vecima launched its Terrace DVB Commercial Video Gateway for the international market at ANGA COM 2017 in Cologne, Germany. A product line extension of the successful Terrace QAM platform, Terrace DVB was developed for markets outside of North America, giving global cable operators the flexibility to adapt to emerging technologies while providing compelling services in hospitality. The first lab trial for the Terrace DVB platform is now underway at a large European MSO.

Vecima continues to make excellent progress on its Entra family of products for the cable industry's evolution to DOCSIS 3.1 distributed access. In the third quarter, Vecima's first Entra Remote MACPHY Distributed Access Node was shipped for customer lab testing while the Entra 10Gb Access Switch was launched at ANGA COM 2017. Vecima is pleased to report it has made rapid progress on its new DOCSIS Remote PHY Distributed Access Node and that interoperability testing is now underway for that major opportunity. Remote PHY is Vecima's third major platform in the Entra Distributed Access family.