Thursday, October 6, 2011

23% of Sandvine's Q3 [Record] Revenues Generated by Alcatel-Lucent

Sandvine published its Q3 (August) results, showing record revenues of $25.6M.

See "Sandvine Reports Q3 2011 Results" - here.

61% of revenues were generated by partners (as oppose to direct sales), and the vendor had only one 10% customer (in this case a 10% reseller) - Alcatel-Lucent generating approximately $5.9M.

See "ALU Positions the 7750-SR as a DPI based Mobile Application Assurance Gateway" - here).

During the Q3 results call, Sandvine's President and CEO, Dave Caputo, said that:
  • Cable is still an important market, although some business shifted to another vendor (this refers to Procera winning Cox - here)
  • Mobile deployments (Latin America, for example) are all about Network Analytics, application aware usage management (see "Telefonica/Movistar Leads CALA’s Trend of Pricing by Application" - here) and congestion management - vs. DSL that focused on volume (quota) management
  • There is price competition, but gross margin remains high (76% in Q3) due to follow-on sales, which usually include software at close to 100% margin  

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