September 28, 2010 / 9:10 PM / in 7 years

UPDATE 1-Vecima swings to Q4 loss, sees profit in Q1

* Q4 loss C$4.3 mln vs Q4 profit C$3.2 mln yr ago

* Says to return to profitability in Q1

* Sees revenue from new products rise

Sept 28 (Reuters) - Canada’s Vecima Networks Inc (VCM.TO) swung to a quarterly loss for the first time in 22 years, hurt by a strong Canadian dollar, an increase in research and development costs and lower gross margins.

Vecima, however, said it expects to return to profitability in the first quarter of fiscal 2011 and sees revenue from new products ramping up in the second half of the fiscal year, helped by the increased investment in research and development.

The communications equipment maker swung to a fourth-quarter loss of C$4.3 million, compared with a net income of C$3.2 million, a year ago.

Vecima, which makes broadband access products used in cable, wireless and telephony networks, said revenue rose 31 percent to C$26.8 million.

Analysts on average had expected a profit of 7 Canadian cents per share, on revenue of C$32.5 million for the fourth quarter, according to Thomson Reuters I/B/E/S.

Shares of Victoria, British Columbia-based Vecima, which have shed about 5 percent of their value since the company posted a lower-than-expected third-quarter profit in May, closed at C$4.95 Tuesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Gopakumar Warrier)

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