Vecima Networks(VCM) is based in Victoria,B.C. and transforms cable television signals into compatible modems and internet compatible devices.This is called video streaming.VCM has been around for about 5 years but has only in 2020 become profitable.It reported a net loss and net loss per share in 2018 and 2019.But it picked up in the second quarter a large new Saskatchewan cable company customer in 2020 called Access Communications as well as a Tier 1operator called APAC with 5 million subscribers.And now it is showing positive adjusted EBITDA as well as e.p.s. in 2020.In addition, it has a new contract with another customer in October called Midco.Midco has 440,000 customers in 400 communities, with an average size of 1000 people, in mid-western U.S.A.VCM is hoping these 3 contracts will beef up earnings for the fourth quarter and annual report due on November12.
Technological Improvements
Of my 2 websites on Google Blogger this site,Workathon,covers the more technical companies.Vecima's base of customers is in rural areas where they cannot receive ordinary cable television service.VCM has video streaming equipment that transforms video signals and related signals in the cable television system into signals compatible with television and internet devices.This is a considerable improvement over the limited reception available before HDMI (video streaming) equipment.In my blog on Workathon dated July 30,2020 it was suggested that revenues could be increased if a small subscriber fee could be charged by VCM. 
The Fourth Quarter
VCM's next quarterly report will be on November12 and this blog sees improved financial performance.Adjusted EBITDA was $20 million for 9 months and $6 million for the third quarter.While e.p.s. was $.33 for 9 months and $.03 for Q3.VCM does not give annual guidance but this blog's estimate for the year is $27-$30 million for adjusted EBITDA and $.36-$.40 e.p.s.This makes for a P/E ratio of 32-35 times earnings which is only high if VCM cannot find new customers or new applications.My blog on Workaton dated July30 stated that" the stock price could be $13-$14 by yearend." It also stated that "revenues and earnings will not likely improve until 2021."Now it appears that revenues will increase in 2020 but will the margin on sales?So VCM is now slightly ahead of this blog's July estimate but can it meet the estimates of adjusted EBITDA and e.p.s given above?If so then advancing to the $14-$15 area by year end seems to be a quite good forecast. https://www.moneysense.ca/ https://www.zacks.com/
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