Friday, July 6, 2012

Sandvine: Big Hopes from ALU Agreement (Generated $3M in Q2)

Sandvine published its Q2 results, matching with the previously announced estimations (here) with revenues of $18.6M. See "Sandvine Reports Q2 2012 Results" - here.

The company also announced a new win from "one of the top 10 telecom providers in the United States" (see "Sandvine Wins $2-Million Order At US Telco" - here). "This service provider purchased Sandvine’s Policy Traffic Switch (PTS), Fairshare Traffic Management and Usage Management products to increase the quality of experience for subscribers across their DSL network"

During the Q2 results call the company said that:
  • A US tier1 operator was a 15% customer at Q2, and expected to place additional purchase orders (not the same one announced today).
  • Alcatel-Lucent contributed, as a channel, 16% of revenues.
  • Telefonica related revenues now are mainly support and maintenance for previous purchases. New product revenues, based on a new supplier agreement with Alcatel-Lucent are expected in the foreseeable future. This new agreement with ALU was mentioned a number of times during the call, mainly as the base for meeting the revenues goals this year and going forward.
  • Business in North America (48% of revenues in Q2) shifted during the years from traffic optimization to service creation use cases, such as usage based billing.
  • Competition: Win rate is pretty good, but they are dissatisfied with not enjoying the nice market growth. They see the pure players (pitching best of breed) and the integrated products (now more often). One opportunity expected to be closed soon in Europe is a competitor replacement. Nevertheless, there are plenty of green fields opportunities.
  • MNOs use Sandvine to recapture revenues lost to OTT messaging apps (such as Whatsup and BBM - the chart is below is based on analytics from an Asian operator). In addition, Sandvine participates in several LTE opportunities 

No comments:

Post a Comment