July 9, 2009 / 5:18 PM / 9 years ago

UPDATE 2-Canada's Sandvine posts wider Q2 loss as expenses rise

* Q2 adjusted loss C$0.03/shr

* Q2 rev up 37 pct to C$15.2 mln

* Q2 expenses rise 22 pct to C$17.3 mln

* Shares down 8 percent (Adds details, analyst’s comments, share movement)

By Ashutosh Joshi

BANGALORE, July 9 (Reuters) - Canada’s Sandvine Corp SVC.TO posted a wider second-quarter loss, as the network equipment maker spent more on marketing and research and development.

Sandvine, which helps broadband and telecom operators manage the data traffic, added nine new customers during the quarter and signed a global distribution agreement with Nokia Siemens Networks.

“With 3G data growth, wireless companies need to manage their traffic and that is why they (Sandvine) are adding these wireless customers and wireless is very large percentage of their business,” CIBC analyst Todd Coupland said by phone.

For the quarter ended May 31, the company reported a net loss of C$5.6 million, or 4 Canadian cents a share, compared with a loss of C$4.6 million, or 3 Canadian cents, a year earlier.

Excluding items, the company reported a loss of C$4.4 million, or 3 Canadian cents a share.

Revenue rose 37 percent to C$15.2 million, supported by a strong wireless market, which for the first time was the largest source of quarterly revenue.

Analysts on average were expecting loss of 3 Canadian cents a share, excluding items, on revenue of C$17.14, according to Reuters Estimates.

Research and development expenses rose 21 percent to C$6.9 million and sales and marketing costs jumped 29 percent to C$5.4 million.

Shares of the Waterloo, Ontario-based company were down 10 Canadian cents, or about 8 percent, at C$1.07 in afternoon trade Thursday on the Toronto Stock Exchange. (Editing by Dinesh Nair, Ratul Ray Chaudhuri)

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