Vecima Networks is on the Move

   Vecima Networks is a little heard of internet video provider.Still it is not that small as it's market capitalization is about $250 million.It largely delivers video streaming and other broadband services to subscribers,usually in remote areas.Recently it made 3 changes in it's management to accomodate it's recent growth.It now has a new COO and SVP (senior vice president) of Content and Broadband Solutions.More importantly it also has two new contracts for delivery.One was to a Canadian cable operator called Access Communications and the second was a Tier1 operator called APAC.Tier1 APAC has more than 5 million subscribers and Access Communications is one of the biggest cable operators in Saskatchewan and Saskatchewan has almost 1.5 million population.                                                                                                          No   estimate is given by VCM as to the revenue that will be earned here.However it is likely that Vecima is only counting on revenue from the content originator like Apple or You Tube at the start of the arrangement.But it is Vecima that has an interface with the customer.And a small subscriber fee  on each service (internet,video,telephone for example) in year 2 would certainly change the financial dynamics for VCM.
          

 Looking Ahead

 These two contracts point to a new future for VCM.Revenue has been flat since 2016 and it had almost no earnings in 2019.But this blog sees it picking up 3 to 5 new contracts with cable companies by 2021.The contract with APAC will require a $12-$15 million upgrade of their system and take several quarters to complete.But cable operators like Sipisiski Cable(Saskatchewan) and even Shaw Cable(Saskatchewan) are potential future customers. So although  Vecima Networks is on the move investors should only expect positive news in 2020.Revenues and earnings will not improve until 2021.Investors willing to wait two quarters should truly see Vecima Networks on the move.VCM is trading in the $10-$11 range now and investors with foresight may push the stock to $13-$14 by yearend.While further good news will send it to $15-$16.    https://www.shaw.ca/  https://www.zacks.com/