Sandvine Incorporated
AIM : SAND
TSX : SVC

Sandvine Incorporated

June 13, 2007 08:14 ET

Sandvine Updates Guidance, Secures Another Tier 1 Service Provider Customer

WATERLOO, ONTARIO--(Marketwire - June 13, 2007) - Sandvine (TSX:SVC)(AIM:SAND), a leading provider of intelligent broadband network solutions for DSL, FTTH, cable, and wireless carriers, now expects fiscal 2007 revenues to be between $62 million and $67 million, an increase from its previous guidance range of $50 million to $60 million.

Sandvine is increasing its revenue estimate for fiscal 2007 (previously published on April 11, 2007) as a result of robust business from existing and new customers, including the addition of another Tier 1 broadband service provider, with over 2 million broadband subscribers. With the addition, Sandvine now has 12 of the world's top 100 broadband service providers as customers. The new revenue estimate reflects Sandvine's improved visibility into projected revenues for the balance of fiscal 2007 and is based on three assumptions:

- Continued adoption and deployment of Sandvine's solutions by existing and new customers.

- At least one Tier 1 DSL service provider beginning to deploy Sandvine's solutions in the Company's fiscal year.

- Up to 10% of fiscal 2007 revenue will be derived through Sandvine's sales channel partners.

ABOUT SANDVINE

Sandvine's award-winning network equipment helps DSL, 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 over 80 customers in more than 30 countries, Sandvine is enhancing the Internet experience for millions of broadband users worldwide.

CAUTION REGARDING FORWARD LOOKING INFORMATION

Certain statements in this report 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, in particular the statements above under the heading "Outlook", 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. These risks and uncertainties include, without limitation, each of the following:

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

- The Company's revenues and operating expenses may fluctuate from quarter to quarter as a result of fluctuations in the exchange rates between currencies in which the Company trades, most notably the United States dollar;

- The Company'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;

- The Company is dependent on a small number of key customers for a large percentage of our revenues;

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

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

- The Company is dependent on its suppliers to ensure continuous supply on terms that allow the Company to fulfill demand, maintain quality and achieve its projected gross margins.

Sandvine does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

Additional risks and uncertainties that relate to an investment in the securities of the Company and which can also impact upon forward-looking information which may be contained in this release can be found in the Company's Annual Information Form and other regulatory filings which are available on SEDAR at www.sedar.com.

Contact Information

  • INVESTOR RELATIONS CONTACT
    Sandvine
    Rick Wadsworth
    (519) 880-2400 ext. 3503
    (519) 884-9892 (FAX)
    Email: rwadsworth@sandvine.com
    or
    MEDIA CONTACT
    Sandvine
    Tanieu Tan
    (519) 880-2232
    (519) 884-9892 (FAX)
    Email: ttan@sandvine.com
    Website: www.sandvine.com
    or
    Canaccord Adams Limited
    Chris Bowman/Andrew Chubb
    +44 207 518 2791 / +44 207 518 7360