BANGALORE (Reuters) - Canadian network equipment maker Sandvine Corp posted a quarterly profit, helped by strong growth in the Asia-Pacific region and digital subscriber lines, but its shares fell as investors expected more.
Sandvine shares, which have gained nearly 50 percent in the last six months, fell 15 percent to a low of C$2.41 in heavy trade.
Investors are disappointed that the company has not been able to provide more revenue visibility, analyst Sameet Kanade of Northern Securities told Reuters.
The Ontario-based company, which drew more than two-thirds of its revenue from outside North America, said it expects another year of revenue growth as network congestion continues and application usage climbs for its customers.
The mobile software company and rivals Bridgewater Systems Corp and Redknee Solutions Inc have seen network congestion and greater use of smartphones drive demand for their products and services.
“I expect continued growth in Asia-Pacific because of the contracts Sandvine has already been awarded, particularly with NTT Communications Corp in Japan,” said analyst Todd Coupland of CIBC World Markets Inc.
In February last year, Sandvine won a contract from NTT to deploy its policy traffic switch on the Japanese carrier’s high speed network.
Sandvine, which works with over 20 resellers including Alcatel-Lucent and Huawei Technologies Co, said reseller revenue nearly doubled in the year.
It reported fourth-quarter net income of C$0.9 million, or C$0.006 a share. Excluding items, the company earned 1.2 Canadian cents a share, while analysts had expected 2 Canadian cents a share, according to Thomson Reuters I/B/E/S.
Revenue rose 32 percent to C$25 million, but came in below analysts’ expectations of C$25.6 million.
Shares of the company, which added five customers in the quarter, were down 38 Canadian cents at C$2.44 on Thursday afternoon on the Toronto Stock Exchange.
Reporting by Bhaswati Mukhopadhyay; Editing by Unnikrishnan Nair