We’re not a financial news organization, but with the planet in thegrip of a recession quarterly results can give readers a sense of howthe Canadian IT infrastructure industry is being hit. Here’s a roundupof some of the most recent ones:
– Toronto’s Redknee Solutions, which makes software and services forcommunications service providers, said its Q2 revenue for the periodending March 31 was $13.8 million, up nine per cent compared to thesame period a year ago. However, net income was almost $206,000,compared to almost $743,000 a year ago. For the six month period netincome was $3.6 million, compared to a $1.1 million loss for the samesix month period in 2008. The company’s deficit is down to $21 million.
–Victoria, B.C.’s Vecima Networks, which makes cable decoders,modulators and wireless systems for cable operators, said revenuefor its third quarter was $20.1 million, a decrease of 34 per cent oversales of $30.4 million in the third quarter of the previous fiscalyear. Total sales for the first nine months of fiscal 2009 increased by11 per cent to $93.7 million it added. Net income for the quarter was$1.2 million. “Sales in the third quarter were impacted by timingissues as customers elected to delay capital spending in light ofweaker economic conditions,” said Dr. Surinder Kumar, chairman and CEO.Based on softening demand experienced in the third quarter and oncontracted and expected sales to major customers the company expectsrevenue in fiscal 2009 will range from flat to down five per cent on anannual basis.
–Toronto’s AirIQ, a telematics provider which said in December ithad to lay off 36 per cent of its staff, said revenues for the threemonths ended March 31 decreased 4.2 per cent to $3,250,220 compared tothe same period a year ago. However, that was a 5.5 per cent increasefrom revenues in the three months ended December 31, 2008. The net lossfor the quarter was $215,099 better than the $1,594,159 it lost in thesame period a year ago. The company, which is burdened by a $96 milliondebt, said its continuation as a going concern is uncertain and maydepend upon getting additional financing.
–Calgary’s Axia NetMedia, which builds high-performance networksaround the world, reported revenues for the quarter were $17.8 million,a drop of $1.1 million from the previous quarter although up 11 percent compared to the same period a year ago. Net income was only$700,000, which it blamed on start-up and commissioning costs of newnetworks in France and Singapore. Recently consortiums Axia was part oflost out on a second project in Singapore, as well as the so-calledNext Generation network in Australia. In Alberta, where it runs theSuperNet, the company said it has not experienced a slowdown in thegrowth in bandwidth or operating results. “However,” it added, “recentadverse economic conditions may cause a delay or postponement ofincremental network growth opportunities.”