Sandvine Corporation

Sandvine Corporation

December 20, 2007 16:36 ET

Sandvine Provides 2008 Revenue Outlook, Estimated Q4 2007 Revenue

Q4 2007 results conference call set for January 16, 2008

WATERLOO, ONTARIO--(Marketwire - Dec. 20, 2007) - Sandvine, (TSX:SVC)(AIM:SAND) a leading provider of intelligent broadband network solutions for DSL, FTTH, cable and wireless carriers, today announced that it expects total revenue for fiscal 2008 in the range of $100 million to $110 million, based on the following assumptions:

- Approximately 50% of the revenue target will be earned from existing customers;

- Sandvine will earn revenue in fiscal 2008 from four to six new "tier one" service providers (service providers with over one million broadband/mobile data subscribers) from the DSL and wireless markets, combined;

- Sales through channel partners will account for approximately 15% to 20% of revenue;

- The Canadian dollar will be at par with the US dollar for the year.

Preliminary results for the fourth quarter ended November 30, 2007 indicate revenue to be approximately $17 million. Based on the preliminary fourth quarter results, Sandvine expects revenue for fiscal 2007 to be approximately $73.6 million. These preliminary results for fiscal 2007 are consistent with the updated fiscal 2007 revenue guidance of $70 - $75 million provided by the Company on October 3, 2007.

"We are extremely proud of our accomplishments in 2007-a year that exceeded our expectations-and are excited about our prospects in 2008. We look forward to continuing to play a leadership role in the emerging market for broadband intelligence," said Dave Caputo, Sandvine's President and Chief Executive Officer.


Sandvine will release its fourth quarter and fiscal year 2007 financial results on January 16, 2008 before markets open in North America. The company will discuss the results and business outlook on a conference call at 8:30 a.m. Eastern time (1:30 BST) on the same day. A webcast will also be available from the Investor Relations section of Sandvine's website.

Date January 16
Time 8:30 a.m. Eastern (1:30 BST)
Local dial-in number 416-644-3414
Toll-free North America 800-733-7571
Toll-free United Kingdom 00-800-2288-3501

A replay of the call will be available at 416-640-1917 or toll-free at 877-289-8525 (passcode 21257145#) from approximately 10:30 a.m. Eastern time on the date of the call through January 23.


Sandvine's award-winning network equipment helps DSL, FTTH, cable and wireless broadband service providers characterize what is really happening on their networks, enabling polices that improve customer satisfaction, reduce operational costs and increase profitability. Sandvine's DPI-based policy solutions are both application and subscriber-aware, empowering service providers to better manage network traffic congestion, mitigate the proliferation of malicious traffic, and deliver QoS-prioritized multimedia services. With more than 90 customers in over 40 countries, Sandvine is enhancing the Internet experience for millions of broadband users worldwide.

Certain statements in this release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements") and are made pursuant to the "safe harbour" provisions of such laws. Statements related to Sandvine's projected revenues, earnings, growth rates, revenue mix and product plans are forward looking statements as are any statements relating to future events, conditions or circumstances. The use of terms such as "anticipated", "expected", "projected", "targeting", "estimate" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Sandvine to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements.

Many factors could cause the actual results of Sandvine to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements, including, without limitation, those factors discussed under the heading "Risk Factors" in Sandvine's most recent Annual Information Form ("AIF"), a copy of which is available on SEDAR at, as well as each of the following.

- The results discussed in this release are preliminary and remain subject to ongoing review by Sandvine's auditors and final approval by Sandvine's Audit Committee and Board of Directors;

- Sandvine's revenues may fluctuate from quarter to quarter and year to year depending upon sales cycles and customer demand;

- Sandvine's gross margins may fluctuate from period to period depending upon a variety of factors including product mix in the quarter, competitive pricing pressures and the level of sales generated through indirect channels;

- Sandvine is dependent on a small number of key customers for a large percentage of its revenues;

- Sandvine faces intense competition in markets where there are typically several different competing technologies and rapid technological changes;

- Sandvine's growth is dependent on the development of the market for intelligent broadband network management solutions and the decisions of its target customers to adopt, deploy and further invest in those technologies;

- Sandvine's results may be adversely impacted by changing global economic conditions and uncertainties in the geopolitical environment including changes in regulation related to the internet;

- Sandvine's results are impacted foreign currency fluctuations; and

- The introduction and sale of new products by Sandvine may impact the timing of revenue recognition which could cause greater revenue fluctuation from quarter to quarter than what has been experienced historically.

Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Sandvine does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

Contact Information

    Rick Wadsworth
    (519) 880-2400 ext. 3503
    Tanieu Tan
    (519) 880-2232
    Canaccord Adams Limited
    Chris Bowman/Andrew Chubb
    +44 207 518 2791 / +44 207 518 7360