Victoria-based Vecima Networks Inc. (TSX:VCM) reported stronger annual profits despite a 5% drop in revenue for the year ending June 30.
Annual profit climbed to $13.2 million on sales of $114.2 million compared with an $11.9 million profit in 2008 from $120.6 million in sales.
According to Vecima, an 11.8% decline in the cost of sales, a $1.1 million gain on the sale of capital assets and a 27% decline in income taxes helped bolster the company's profitability.
Demand for Vecima's broadband hardware products was down as its customers conserve cash by delaying capital purchases, but the company forecasts revenue growth in each of its markets in 2010 and expects to maintain its gross margins in the historical range of 35% to 40%.
Vecima said it also plans to maintain its research and development investments and increase sales and marketing spending.
The company's share price range during the past week: between $6.01 and $6.07; 52-week high: $8.19; 52-week low: $3.75.