Vecima’s DAA biz expands as provide chain challenges loom

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Vecima Networks noticed a pointy rise in gross sales and deployments of distributed entry structure (DAA) gear by cable operators in its fiscal Q1. However execs additionally warned that the corporate is beginning to really feel the consequences of provide chain constraints.


Gross sales of the corporate’s “Entra”-branded DAA merchandise reached a report C$18.1 million (US$14.46 million) within the interval, up 246% year-over-year, and up 9% from the prior quarter. Entra gross sales accounted for about 75% of complete gross sales in Vecima’s video and broadband options (VBS) phase, Vecima President and CEO Sumit Kumar mentioned on final week’s quarterly earnings name. Whole Vecima revenues climbed 19%, to C$32.4 million (US$25.89 million).


Vecima has seen DAA gross sales exercise speed up in 2021 after cable operators put sure DAA initiatives and different next-gen community exercise on the backburner in 2020. Final yr, operators have been extra centered on including capability to their current networks to remain forward of utilization spikes fueled by the pandemic.


Cable operators seem like pursuing DAA with extra vigor now as they give the impression of being to beef up the capabilities of their current DOCSIS 3.1 networks and start to put the groundwork for DOCSIS 4.0 – an structure for hybrid fiber/coax (HFC) networks that requires DAA and can put MSOs in place to supply symmetrical multi-gigabit speeds.


Vecima mentioned complete buyer “engagements” for Entra merchandise rose to 77 cable operators worldwide within the quarter, up from 71 on the finish of the prior interval. Thirty-nine of these clients have ordered Entra merchandise that now span practically 7,200 cable and fiber entry nodes and canopy some 18,000 service teams.


Kumar mentioned orders are shifting to scaled deployments amongst some clients. However gross sales in fiscal Q1 would have been even greater with out exterior freight logistics points linked to provide chain constraints which are impacting a number of industries. Delays in schedules and supply occasions impacted Entra gross sales by greater than C$2 million (US$1.59 million) within the interval, he mentioned.


These points apart, Vecima’s DAA exercise is ramping up following its 2020 acquisition of Nokia’s cable entry property.


Vecima can also be seeking to broaden its piece of the cable entry market following the current business launch of a fiber-optic node based mostly on the SCTE’s Generic Entry Platform (GAP) requirements. Vecima acquired ATX Networks’ mental property, together with drawings and schematics, for a GAP node earlier this yr. Constitution Communications is taken into account the first champion of standardized GAP nodes that may home varied forms of service modules for HFC, fiber-to-the-premises and cell/wi-fi entry networks.


Kumar mentioned Vecima has left the door open to different M&A alternatives which may present incremental expertise and product developments. “We’re in an awesome place to be a consolidator, if different distributors are altering focus,” he mentioned.


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— Jeff Baumgartner, Senior Editor, Gentle Studying