Sandvine Corporation (TSX: SVC) is a Waterloo, Canada-based company engaged in the development and marketing of network policy control solutions for high-speed, or broadband, Internet service providers.
This morning, SVC announced that its Board of Directors approved its second quarterly dividend of C$0.0175 per common share. The dividend will be payable on May 8th to shareholders of record as of the close of business on April 20th. SVC currently has a dividend yield of 2.61%. Despite announcing a quarterly dividend, SVC shares have fallen sharply in trading today. At last check, SVC shares were down 7.90% to $2.68.
The sharp pullback in SVC shares could be due to disappointment over the company’s first-quarter results, which were also released today. The company reported first-quarter revenue of US$34.2 million, compared to US$32.4 million reported for the same period in the previous year. The company’s gross margin for the quarter was 76%, unchanged from the same period last year. SVC though saw a sharp increase in its expenses. Expenses rose 8% on a year-over-year basis to US$18.7 million. The company’s net income also dropped significantly. Net income came in at US$5.6 million, compared to US$10.2 million.
