Saturday, October 11, 2014

Sandvine: IBM is a 10% Reseller with an "active pipeline of opportunities"

Sandvine published its Q3 results (see "Sandvine Reports Q3 2014 Results" - here). Revenues were $27.9M, within the range estimated by the company at the beginning of Q4 (see "Sandvine Receives $5M Expansion Order (CALA)" - here).

During the earning call, Sandvine's CEO, Dave Caputo, explained that "When we provided our Q3 revenue estimate, we had explained that a couple of significant deals that we had been working on during the quarter were delayed. We have now closed one of those deals .. the other deal that I referenced in my call still hasn’t closed and can be as far out as December. We’re still confident that we can win that business but sort of stuff happens and there is no question that it takes sales effort to continue to bring those over the line, and so I wouldn’t read into that".

Scott Hamilton [pictured], CFO, added - "I’m certainly getting the feeling that customers are becoming more focused on particular things that I believe is going to defer revenue into a period after from which we’ve received the order, and so while on a long-term basis that doesn’t necessarily impact us, it could impact short-term results from period to period" (i.e. acceptance by customers).

Sandvine filling to the Canadian Authorities (here) shows that for the first time, IBM joins Alcatel-Lucent as a 10% reseller (see also "Sandvine CEO Bullish on IBM Relations" - here and IBM's document - "Dynamic Policy Management for Mobile and Fixed Networks" - here).

Dave explains: "Certainly, we’re very pleased and excited to see the IBM relationship develop .. it was a couple of end customers that drove that, but there is an active pipeline of opportunities, so hopefully this won’t be the last time. They are a major reseller for us. We like system integrators who like to pull together best-of-breed solutions to provide a compelling use case for our customers and no one can doubt IBM’s resolve on the business intelligence, smarter planet, smarter networks, network analytics side of that, that’s a big part of their global corporate messaging and theme". 

See "Sandvine's (SNVNF) CEO Dave Caputo on Q3 2014 Results - Earnings Call Transcript", by SeekingAlpha, here.

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