Sandvine Reports Q1

WATERLOO, Ontario -- Sandvine Corporation, (TSX:SVC)(AIM:SAND) a leading provider of intelligent broadband network solutions for DSL, cable, FTTx, fixed wireless and mobile operators, today reported record quarterly revenue of $21.9 million and GAAP net income of $0.6 million for its first quarter of 2010.

"I am extremely pleased to see Sandvine return to profitability this quarter. Our results are starting to show the benefit of some significant investments that we have been making to expand Sandvine's long-term market opportunity and to enable a balance in our business across broadband access technology markets, sales regions and sales channels," said Dave Caputo, president and chief executive officer.

The cable and DSL markets each contributed 36% of Sandvine's first quarter revenue, while mobile and other markets contributed 28% of revenue. Sandvine's revenue was split almost equally between North America and all other sales regions. Over forty percent of revenue was earned through reseller partners.

Sandvine's GAAP net income in the first quarter was $0.6 million ($0.004 per diluted share) and non-GAAP(1) net income was $1.6 million ($0.012 per diluted share), compared to losses in both Q4 2009 and Q1 2009. A reconciliation of GAAP to non-GAAP(1) results is included as Table 1. The results for the quarter reflect the adoption of EIC 175, Multiple Deliverable Revenue Arrangements, which increased first quarter revenue by $1.5 million compared to what would have otherwise been recognized under the previous accounting standard.

Sandvine added $2.7 million to its cash and marketable securities balance over the quarter, to total $88.4 million at February 28, due largely to positive cash flow from operations.

Sandvine Inc.