* Says no project cancellations yet in Japan
* Rollout of social networking sites boosts business
* Q1 adj loss/shr $0.014 vs year-ago EPS $0.011
* Rev falls 7 pct
* Shares rise 3 pct (Adds analyst quote, details from conference call; updates share movement)
BANGALORE, April 6 (Reuters) - Canada's Sandvine Corp reported a smaller drop in first-quarter revenue than what it had warned of, and it said the Japan earthquake has had no significant impact on its business yet, sending its shares up 3 percent.
The network equipment maker, which drew more than a third of its quarterly revenue from Mitsubishi , said it has not yet seen a pause in business from Japan or any project cancellations. Mitsubishi resells Sandvine's products to Japan's NTT Communications Corp.
Sandvine, which helps broadband and telecom operators manage data traffic, said although the revenue fell 7 percent in the first quarter due to order delays, there were no customer losses.
The revenue drop is the first in more than two years for the company, which has usually been tight-lipped about its business.
Last month, Sandvine warned of a drop in revenue, saying it expected it to be in the $18-$19 million range. [ID:nL3E7E92FQ]
"The pipeline is as healthy as ever ... We have even more use cases as people are rolling out social networking tiers and such through mobile data offerings," Chief Executive Dave Caputo said on a conference call.
Sandvine, along with rivals Bridgewater Systems Corp and Redknee Solutions Inc , has seen network congestion and greater use of smartphones drive up demand for its products and services.
Sandvine, which draws about two-thirds of its revenue from outside North America, added 13 new customers in the quarter.
"I think the wireless business will come back and it will give them (Sandvine) more balance in their revenue splits," said CIBC World Markets analyst Todd Coupland.
The company drew 19 percent of its revenue in the quarter from the mobile access market.
Analysts said a broadband deal with Telefonica , the euro zone's largest telecoms operator, also cheered investors.
For the quarter, the company reported a net loss of $2.7 million, or 2 cents a share. Excluding items, the loss was 1.4 cents a share.
Revenue fell 7 percent to $19.2 million.
Sandvine, which works with resellers such as Alcatel-Lucent and Huawei Technologies Co , drew nearly two-thirds of its revenue from reseller partners.
Waterloo, Ontario-based Sandvine shares were up 1 Canadian cent at C$2.30 on Wednesday morning on the Toronto Stock Exchange. They earlier touched a high of C$2.38. (Reporting by Bhaswati Mukhopadhyay; Editing by Maju Samuel)