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Sandvine swings to US$900K profit in Q2; revenue up 27% at $23.5M

The logo for Sandvine Intelligent Broadband Newtworks is shown. THE CANADIAN PRESS/HO, Sandvine

WATERLOO, Ont. - Sandvine Corp, (TSX:SVC) swung to a US$900,000 profit in the second quarter as the Waterloo, Ont.,-based broadband technology provider posted significantly higher revenues in reversing last year's Q2 loss.

The company reported Wednesday that revenues rose 27 per cent to US$23.5 million from US$18.6 million in the same 2012 period.

The current-year profit amounted to less than a penny per share, compared with the prior-year loss of US$4.2 million or three cents per share.

"Year-to-date revenue is up more than 25 per cent and we continue to believe that we are well-positioned for a year of strong revenue growth," president and CEO Dave Caputo said in the company's earnings release.

"While we had anticipated additional significant orders during the second quarter, some have arrived in the month of June. We are also pleased to have remained profitable in the second quarter and to have grown our cash balance again."

Sandvine said it had received more than $7 million in expansion orders from three unnamed Tier 1 operators in June.

They included more than $4.5 million in orders from a North American converged operator that Sandvine initially won as a customer in November 2012.

The expansion orders for the North America operator largely relate to additional policy traffic switch elements to support work on both fixed and mobile LTE networks.

As well, Sandvine said it received follow-on orders worth more than $2.5 million from two European mobile properties that belong to a major multinational operator group.

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