Vecima Reports Breakout Q4 and Fiscal 2026 Results, Achieving Record Quarterly Revenue and Adjusted EBITDA

Vecima Reports Breakout Q4 and Fiscal 2026 Results, Achieving Record Quarterly Revenue and Adjusted EBITDA VICTORIA, British Columbia--( BUSINESS WIRE)--Vecima Networks Inc. (TSX: VCM) today reported financial results for the three months and full year ended June 30, 2026.

FINANCIAL HIGHLIGHTS

(Canadian dollars in millions except percentages, employees, and per share data) 1

Q4 FY26

Q3 FY26

Q4 FY25

FY 2026

FY 2025

Revenue

$91.0

$62.9

$66.7

$295.0

$278.1

Gross Margin

45.4%

46.5%

26.3%

44.4%

37.5%

Net Income (Loss)

$5.4

$(0.5)

$(13.3)

$4.9

$(18.5)

Earnings (Loss) Per Share 2

$0.22

$(0.02)

$(0.55)

$0.20

$(0.76)

Adjusted Gross Margin 3,4

45.0%

50.0%

36.7%

45.8%

39.9%

Adjusted Earnings (Loss) Per Share 3,5,6

$0.21

$0.05

$(0.06)

$0.34

$(0.22)

Adjusted EBITDA 3

$18.9

$10.6

$6.2

$50.4

$26.4

Employees

601

580

562

601

562

1) Includes results from continuing operations only, unless otherwise noted. Continuing operations do not include results for Vecima's Telematics segment, which was sold in July 2026.

2) Based on weighted average number of shares outstanding.

3) Adjusted Gross Margin, Adjusted Earnings Per Share, Adjusted EBITDA, and Adjusted EBITDA Margin do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers.

4) Adjusted gross margin adds back the impact of a non-cash write-down of inventories to net realizable value and warrant expense.

5) Adjusted earnings per share includes non-cash share-based compensation, which primarily reflects certain performance-based vesting thresholds achieved under the Company’s Performance Share Unit Plan.

6) Adjusted earnings per share and Adjusted EBITDA include foreign exchange gains and losses.

“We delivered the strongest quarter in Vecima’s history with wide-scale DAA rollouts gaining momentum as a major, multi-year cycle of demand continues to build,” said Sumit Kumar, Chief Executive Officer of Vecima.

“Our fourth quarter results, which included record quarterly highs for revenue, adjusted EBITDA, and adjusted EBITDA margin, were driven by the anticipated surge in orders and record sales levels for our next-generation Entra DAA products. This included a ramp-up in shipments of our ERM3xx Remote-PHY modules, record sales for our Entra SF-4X Optical fiber-access platform, and continued market growth for our highly successful EN9000 GAP node."

“The fourth quarter also marked significant progress for our new vCMTS cloud-based solution, as we moved into deeper trials and commercialization. During the quarter, we advanced trial activity with our lead Tier 1 customer while also signing new agreements with additional customers, including a large Tier 1 operator in Canada. With customer engagements rapidly increasing across North America and Europe, we expect vCMTS to become a more significant contributor to our fiscal 2027 results, on the path to becoming a major growth driver for Vecima in the future."

“Our Commercial Video business added to the momentum as we signed an agreement with a major Tier 1 North American customer for TerraceIQ and secured additional design wins for this next-generation platform. And in our Content Delivery and Storage segment, we delivered double-digit growth, with fourth quarter revenue climbing 26% and full-year revenue up 12% year-over-year as managed IPTV uptake continued to expand."

“With broad-based demand now coalescing across multiple product lines, we have greater visibility into the near-term growth trajectory for our business," added Mr. Kumar. "Supported by customer orders and forecasts, we have again increased our outlook for calendar 2026 and now anticipate 27% to 32% revenue growth compared to calendar 2025, up from our previous forecast of 22.5% to 30.0%. Looking further ahead, we expect fiscal 2027 revenue to grow 30% to 35% compared to fiscal 2026 and we anticipate an adjusted EBITDA margin of approximately 20% in both calendar 2026 and fiscal 2027."

"After years of disciplined and sustained strategic execution, it is deeply satisfying to be realizing the rewards of our investments in the industry's deepest and broadest portfolio of innovative, interoperable, and increasingly software-centric cable and fiber access products and IPTV solutions. And we are simultaneously leading the way forward with new investments in a comprehensive, highly innovative, cloud-native portfolio that pave the way to the 50G future," concluded Mr. Kumar.

BUSINESS HIGHLIGHTS

Financial and Corporate

Video and Broadband Solutions (VBS)

DAA (Entra Family)

Commercial Video (Terrace Family)

Content Delivery and Storage (CDS)

Telematics

On July 31, 2026, Vecima closed the sale of its Telematics business to Lantronix Inc. for total cash consideration of $16.5M, subject to customary working capital adjustments. The purchase price includes $14.5M that was paid at closing and an additional $2.0M payable by the end of calendar 2026.

Vecima has met the criteria for presenting Telematics as a discontinued operation as at June 30, 2026 and as such, the results of the Telematics business segment have been classified as assets held for sale and discontinued operations. Telematics results have been removed from consolidated results and presented separately as discontinued operations in current and comparative results, except for the comparative periods in the consolidated statement of financial position. Unless otherwise indicated, all financial information represents the results from continuing operations.

Trade and Tariffs

While trade actions had a negligible impact on the 89% of Vecima's sales made to the US in fiscal 2026, the Company continues to closely monitor developments in an unpredictable trade environment. Vecima is one of the few competitors in the industry that fully "owns" its manufacturing process. This provides the flexibility to adapt quickly to changing macroeconomic conditions, including the ability to rapidly transition manufacturing to different countries when needed, an agility Vecima has demonstrated in the past.

Trade policy adjustments between the US and Canada introduced in summer 2026 have had minimal impact on Vecima's margins or competitive position, and the Company's forward outlook reflects the present trade landscape.

CONFERENCE CALL

A conference call and live audio webcast will be held today, Thursday, September 24, 2026 at 1:00 p.m. ET to discuss the Company’s fourth quarter results. Vecima’s audited annual consolidated financial statements and management’s discussion and analysis for the three months and full year ended June 30, 2026 are available under the Company’s profile at www.sedarplus.ca, and at https://vecima.com/investor-relations/financial-reports/.

To participate in the Q4FY26 teleconference, dial 1-833-752-3965 or 1-647-849-3105. The webcast will be available in real time at https://event.choruscall.com/mediaframe/webcast.html?webcastid=3P1KR0uc and will be archived on the Vecima website at https://vecima.com/investor-relations/earnings-call-archive/.

About Vecima Networks

Vecima Networks builds the intelligent infrastructure powering the next generation of connectivity. Through broadband access, content delivery, cloud-native software, automation, and AI-enabled solutions, Vecima helps service providers modernize cable and fiber networks, deliver exceptional broadband and video experiences, and operate more intelligent, efficient networks. As operators evolve toward AI-enabled, software-driven architectures, Vecima’s platforms simplify operations, accelerate innovation, and enable the reliable, high-performance networks that connect homes, businesses, and communities around the world. Learn more at vecima.com.

Forward-Looking Statements

This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words and phrases such as “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “could,” “estimates,” “expects,” “forecasts,” “projects,” “outlook,” “future,” “growth,” “trajectory,” “momentum,” “visibility,” and similar expressions, including the negative of such expressions, although not all forward-looking information contains these identifying words.

Forward-looking information in this news release includes, without limitation, statements regarding: the Company’s expectations for a significant resurgence of growth in fiscal Q4 and beyond; the customer forecast-driven visibility into demand across the next several periods; the Company’s increased revenue growth outlook for calendar 2026; the Company’s expectation of 27% to 32% revenue growth in calendar 2026 as compared to calendar 2025; the Company’s expectation of an adjusted EBITDA margin of approximately 20% in both calendar 2026 and fiscal 2027; the timing, volume and impact of customer purchase orders and forecasts; anticipated increases in customer volumes in the near term; the expected impact of new design wins, customer engagements and product milestones; the Company’s anticipated growth trajectory; the anticipated impact of accelerating and wide-scale DAA adoption; the Company’s positioning for substantial value creation; the expectation that momentum will set the stage for new quarterly revenue records; the expectation that Entra fiber and cable-access products, including Entra RemotePHY, EN9000 and Entra Optical solutions, will lead near-term performance gains; the expected contribution of DOCSIS 4.0, vCMTS, IPTV and DAI solutions; the Company’s strategy to build an innovative, interoperable portfolio of next-generation fiber and cable access products and IPTV solutions; the Company’s expanding focus on software-centric products and platforms and preparation for the 50G future; expected sustained growth and financial performance scaling to new heights; the expected effect of tariffs, trade restrictions and CUSMA treatment on the Company’s manufacturing and products; and the Company’s ability to benefit from owning its manufacturing process.

Certain forward-looking information in this news release, including the Company’s expected calendar 2026 revenue growth, adjusted EBITDA margin and adjusted EBITDA growth, constitutes a “financial outlook” within the meaning of applicable securities laws. This financial outlook is provided to assist readers in understanding management’s current expectations regarding the Company’s prospective financial performance for calendar 2026 and may not be appropriate for other purposes. For purposes of this news release, “calendar 2026” refers to the twelve-month period ending December 31, 2026, and “calendar 2025” refers to the twelve-month period ended December 31, 2025. Except for non-IFRS and other financial measures expressly identified as such, the financial outlook has been prepared using accounting policies that are generally consistent with those expected to be used by the Company in preparing its historical financial statements for the applicable period.

The forward-looking information and financial outlook in this news release are based on management’s current expectations, estimates, forecasts and projections, as well as assumptions that management believes are reasonable as of the date of this news release. These assumptions include, without limitation, assumptions regarding: the timing, volume and conversion of customer purchase orders and forecasts into shipments and revenue; the absence of material cancellations, deferrals or reductions in anticipated customer orders; continued customer investment in DAA, DOCSIS 4.0, vCMTS, IPTV and DAI deployments; customer deployment schedules and purchasing patterns; the timing and success of design wins, product qualifications and customer engagements; demand for the Company’s Entra RemotePHY, EN9000, Entra Optical, DOCSIS 4.0, vCMTS, IPTV and DAI solutions; the Company’s ability to meet product development, interoperability, manufacturing, quality, supply chain and delivery milestones; expected product mix, pricing, gross margins, adjusted EBITDA margins and operating expense levels; the availability and cost of components, labour, materials and manufacturing capacity; foreign exchange rates; the Company’s ability to maintain effective supplier and customer relationships; competitive conditions in the Company’s markets; industry adoption of next-generation access and video technologies; the absence of material adverse changes in macroeconomic conditions, customer capital spending, industry consolidation, applicable laws, tariffs, trade restrictions, customs treatment, CUSMA treatment or geopolitical conditions; and the continued performance of the Company’s products and platforms in line with customer requirements.

Actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking information and financial outlook in this news release. Important risks and uncertainties that could cause actual results to differ materially include, among others: customer forecasts or purchase orders may be delayed, reduced, cancelled or not converted into revenue as expected; customer network upgrade projects and capital spending may be delayed, reprioritized or reduced; new products or platforms may not achieve expected market adoption, qualification, interoperability or performance milestones; manufacturing, quality, component availability, supply chain, delivery, product mix, pricing, margin or operating expense outcomes may differ from management’s expectations; demand for DAA, DOCSIS 4.0, vCMTS, IPTV, DAI or other next-generation solutions may develop more slowly than expected; and competitive, foreign exchange, tariff, trade, geopolitical, cybersecurity, intellectual property, regulatory, litigation, customer concentration or general business risks may adversely affect the Company. A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading “Risk Factors” in the Company’s Annual Information Form dated September 24, 2026 and in the Company’s other continuous disclosure filings with Canadian securities regulatory authorities, including the Company’s Management’s Discussion and Analysis for the three months and full year ended June 30, 2026 and 2025, available under the Company’s profile at www.sedarplus.ca.

Forward-looking information and financial outlook is not a guarantee of future performance, and readers should not place undue reliance on them. All forward-looking information and financial outlooks in this news release are qualified in their entirety by this cautionary statement as of the date of this news release. The Company disclaims any obligation to revise or update any forward-looking information or financial outlook, or to publicly announce the result of any revisions to any such information, to reflect future results, events or developments, except as required by law.

Non-IFRS measures

This news release contains references to certain Non-IFRS measures that do not have standardized meanings prescribed by IFRS Accounting Standards. Readers should not consider these measures in isolation or as a substitute for analysis of the company’s results as reported under IFRS Accounting Standards. These measures are defined differently by different companies and, therefore, might not be comparable to similar measures presented by other issuers. For information on the composition of these measures, as well as an explanation of how the company uses these measures, refer to Vecima’s MD&A for the periods ended June 30, 2026 and 2025 (available on SEDAR+ at www.sedarplus.ca, and on Vecima’s website at https://vecima.com/investor-relations/financial-reports/, which is incorporated by reference into this news release.

Adjusted Net Income and Adjusted Earnings per Share:

Calculation of Adjusted Earnings per Share

(in thousands of dollars)

Q4 FY26

Q3 FY26

Q4 FY25

FY 2026

FY 2025

Net income (loss) from continuing operations

5,382

(512

)

(13,296

)

4,865

(18,495

)

Intangible asset impairment expense, net of tax

–

5,490

–

5,490

Write-down of inventory to net realizable value,

net of tax

1,482

6,440

3,043

6,536

Loss on sale of assets, net of tax

–

Warrant expense (recovery), net of tax

(241

)

304

(11

)

186

(1,384

)

Advisory fees, net of tax

–

308

Restructuring costs, net of tax

–

2,210

Adjusted net income (loss)

5,288

1,281

(1,377

)

8,202

(5,284

)

Net income (loss) per share from continuing

operations

0.22

(0.02

)

(0.55

)

0.20

(0.76

)

Intangible asset impairment expense, net of tax

0.00

0.23

0.00

0.23

Write-down of inventory to net realizable value,

net of tax

0.00

0.06

0.26

0.13

0.27

Loss on sale of non-core PP&E, net of tax

0.00

Warrant expense (recovery), net of tax

(0.01

)

0.01

0.00

0.01

(0.06

)

Advisory fees, net of tax

0.00

0.01

Restructuring costs, net of tax

0.00

0.09

Adjusted earnings (loss) per share (1)(2)

0.21

0.05

(0.06

)

0.34

(0.22

)

(1)

Adjusted earnings per share includes non-cash share-based compensation of $1.6 million or $0.07 per share for the year ended June 30, 2026, $1.9 million or $0.08 per share for the year ended June 30, 2025, $0.3 million or $0.01 per share for the three months ended June 30, 2026, $0.4 million or $0.01 per share for the three months ended March 31, 2026, and $0.4 million or $0.01 per share for the three months ended June 30, 2025. The non-cash share-based compensation primarily reflects certain performance-based vesting thresholds achieved under the Company’s Performance Share Unit Plan.

(2)

Adjusted earnings per share includes foreign exchange loss of $0.7 million or $0.03 per share for the year ended June 30, 2026, a loss of $2.0 million or $0.08 per share for the year ended June 30, 2025, a loss of $0.4 million or $0.02 per share for the three months ended June 30, 2026, a gain of $0.2 million or $0.01 per share for the three months ended March 31, 2026, and a gain of $1.5 million or $0.06 per share for the three months ended June 30, 2025.

Adjusted Gross Margin:

Calculation of Adjusted Gross Margin

(in thousands of dollars)

Q4 FY26

Q3 FY26

Q4 FY25

FY 2026

FY 2025

Sales

90,969

62,940

66,668

294,958

278,050

Cost of sales

49,700

33,669

49,112

164,022

173,754

Gross profit

41,269

29,271

17,556

130,936

104,296

Warrant expense (recovery) (1)

(325

)

385

(13

)

241

(1,752

)

Write-down (recovery) of inventory to net realizable

value

(39

)

1,822

6,956

4,006

8,428

Adjusted gross profit

40,905

31,478

24,499

135,183

110,972

Adjusted gross margin

45.0

50.0

36.7

45.8

39.9

(1)

Reflects non-cash expense associated with warrants issued to a customer which are recorded as a sales incentives under IFRS Accounting Standards.

EBITDA and Adjusted EBITDA:

Calculation of Adjusted EBITDA

(in thousands of dollars)

Q4 FY26

Q3 FY26

Q4 FY25

FY 2026

FY 2025

Net income (loss) from continuing operations

5,382

(512

)

(13,296

)

4,865

(18,495

)

Income tax expense (recovery)

4,299

(235

)

(5,596

)

3,371

(6,983

)

Interest expense

2,223

1,821

3,233

9,080

10,010

Depreciation of property, plant and equipment

619

607

633

2,694

3,092

Depreciation of right-of-use assets

344

394

422

1,496

1,483

Amortization of deferred development costs

5,155

5,263

4,691

20,094

15,900

Amortization of intangible assets

686

677

660

2,744

2,842

EBITDA

18,708

8,015

(9,253

)

44,344

7,849

Intangible asset impairment expense

–

6,949

–

6,949

Write-down of inventory to net realizable value

1,876

8,152

4,031

8,274

Loss on sale of assets

–

Warrant expense (recovery)

(319

)

385

(14

)

247

(1,752

)

Share-based compensation

338

360

361

1,648

1,855

Advisory fees

131

–

131

390

Restructuring costs

–

2,798

Adjusted EBITDA

18,922

10,645

6,195

50,413

26,428

Adjusted EBITDA margin

20.8

16.9

9.3

17.1

9.5

Net Debt:

Calculation of Net Debt

(in thousands of dollars)

June 30,

2026

June 30,

2025

Revolving line of credit

13,768

33,938

Current portion of long-term debt (1)

12,847

8,336

Long-term debt (1)

22,116

19,927

48,731

62,201

Less: cash and cash equivalents

(2,876

)

(3,441

)

Less: lease liabilities

(5,187

)

(5,150

)

Net debt

40,668

53,610

(1)

Current and long-term debt includes lease liabilities on the consolidated statements of financial position.

Research and Development Expenditures

Calculation of R&D Expenditures

(in thousands of dollars)

Q4 FY26

Q3 FY26

Q4 FY25

FY 2026

FY 2025

R&D expense per consolidated statements of

comprehensive income (loss)

12,565

13,175

11,723

50,426

45,316

Deferred development costs

9,440

7,901

8,251

32,840

30,716

Amortization of deferred development costs

(5,155

)

(5,263

)

(4,691

)

(20,094

)

(15,900

)

Research and development expenditures

16,850

15,813

15,283

63,172

60,132

Percentage of sales

18.5

25.8

23.5

21.4

21.6

Discontinued Operations

Discontinued Operations Income Data

(in thousands of dollars except common share data)

Q4 FY26

Q3 FY26

Q4 FY25

FY 2026

FY 2025

Sales

1,766

1,892

2,088

7,405

7,813

Cost of sales

509

512

847

2,166

2,689

Gross profit

1,257

1,380

1,241

5,239

5,124

Operating expenses

3,467

1,115

1,130

6,776

4,186

Operating income (loss)

(2,210

)

265

111

(1,537

)

938

Net income (loss)

(2,279

)

266

(1,691

)

733

Net income (loss) per share – basic and diluted

(0.09

)

0.01

(0.07

)

0.03

Other Data:

Adjusted earnings (loss) per share

(0.09

)

0.01

0.00

(0.07

)

0.04

Adjusted EBITDA

502

625

511

2,359

2,428

Research and development expenditures

420

408

375

1,560

1,444

VECIMA NETWORKS INC.

Consolidated Statements of Financial Position

(in thousands of Canadian dollars)

As at June 30,

2026

2025

Assets

Current assets

Cash and cash equivalents

2,876

3,441

Accounts receivable

30,821

23,916

Income tax receivable

1,629

1,690

Inventories

92,382

110,631

Prepaid expenses and other current assets

8,530

6,685

Contract assets

4,620

1,159

Assets held for sale

10,329

–

Total current assets

151,187

147,522

Non-current assets

Property, plant and equipment

10,974

10,935

Right-of-use assets

4,773

4,824

Goodwill

10,812

16,934

Intangible assets

109,859

101,610

Investment tax credits

20,694

22,157

Deferred tax assets

27,004

27,656

Other long-term assets

250

431

Total assets

335,553

332,069

Liabilities and shareholders’ equity

Current liabilities

Revolving line of credit

13,768

33,938

Accounts payable and accrued liabilities

46,127

37,694

Provisions

1,012

874

Deferred revenue

13,325

15,226

Current portion of financial liability

519

290

Current portion of long-term debt

12,847

8,336

Liabilities directly associated with assets held for sale

1,001

–

Total current liabilities

88,599

96,358

Non-current liabilities

Provisions

595

460

Deferred revenue

8,132

1,755

Long-term debt

22,116

19,927

Total liabilities

119,442

118,500

Shareholders’ equity

Share capital

24,152

Reserves

7,614

5,966

Retained earnings

179,682

181,857

Accumulated other comprehensive income

4,663

1,594

Total shareholders’ equity

216,111

213,569

Total liabilities and shareholders’ equity

335,553

332,069

VECIMA NETWORKS INC.

Consolidated Statements of Comprehensive Income (Loss)

(in thousands of Canadian dollars, except per share amounts)

Years ended June 30,

2026

2025

Sales

294,958

278,050

Cost of sales:

Cost of product and services

160,016

165,326

Write-down of inventory to net realizable value

4,006

8,428

Total cost of sales

164,022

173,754

Gross profit

130,936

104,296

Operating expenses

Research and development

50,426

45,316

Sales and marketing

35,100

33,422

General and administrative

25,636

26,960

Impairment of intangible assets

–

6,949

Restructuring costs

–

2,798

Share-based compensation

1,648

1,855

Other expense

147

451

Total operating expenses

112,957

117,751

Operating income (loss)

17,979

(13,455

)

Finance expense

(9,063

)

(9,986

)

Foreign exchange loss

(680

)

(2,037

)

Income (loss) before income taxes

8,236

(25,478

)

Income tax expense (recovery)

3,371

(6,983

)

Net income (loss) from continuing operations

4,865

(18,495

)

Net income (loss) from discontinued operations

(1,691

)

733

Net income (loss)

3,174

(17,762

)

Other comprehensive income (loss)

Item that may be subsequently reclassified to net income (loss)

Exchange differences on translation of foreign operations

3,069

(161

)

Comprehensive income (loss)

6,243

(17,923

)

Net income (loss) per share

Continuing operations

0.20

(0.76

)

Discontinued operations

(0.07

)

0.03

Total basic net income (loss) per share

0.13

(0.73

)

Weighted average number of common shares outstanding

24,314,594

24,313,618

VECIMA NETWORKS INC.

Consolidated Statements of Changes in Equity

(in thousands of Canadian dollars)

Share capital

Reserves

Retained

earnings

Accumulated

other

comprehensive

income (loss)

Total

Balance as at June 30, 2024

24,117

4,120

204,968

1,755

234,960

Net loss

–

(17,762

)

–

(17,762

)

Other comprehensive loss

–

(161

)

(161

)

Dividends

–

(5,349

)

–

(5,349

)

Shares issued by exercising options

)

–

Share-based payment expense

–

1,855

–

1,855

Balance as at June 30, 2025

24,152

5,966

181,857

1,594

213,569

Net income

–

3,174

–

3,174

Other comprehensive income

–

3,069

Dividends

–

(5,349

)

–

(5,349

)

Share-based payment expense

–

1,648

–

1,648

Balance as at June 30, 2026

24,152

7,614

179,682

4,663

216,111

VECIMA NETWORKS INC.

Consolidated Statements of Cash Flows

(in thousands of Canadian dollars)

Years ended June 30

2026

2025

OPERATING ACTIVITIES

Net income (loss) from continuing operations

4,865

(18,495

)

Adjustments for non-cash items:

Loss on sale of property, plant and equipment

Depreciation and amortization

27,028

23,316

Impairment of intangible assets

–

6,949

Share-based compensation

1,648

1,855

Warrant expense (recovery)

247

(1,752

)

Write-down of inventory to net realizable value

4,031

8,274

Income tax expense (recovery)

614

(1,060

)

Deferred income tax expense (recovery)

2,757

(5,923

)

Interest expense

9,080

10,011

Interest income

(17

)

(24

)

Net change in working capital

15,592

42,057

(Decrease) increase in other long-term assets

(102

)

263

Increase in provisions

289

383

Income tax paid

)

(3,028

)

Interest received

Interest paid

(9,114

)

(10,366

)

Cash provided by discontinued operations

866

823

Cash provided by operating activities

57,800

53,397

INVESTING ACTIVITIES

Deferred development costs

(32,398

)

(29,494

)

Capital expenditures

(3,946

)

(2,310

)

Proceeds from sale of property, plant and equipment

161

Business acquisitions, net of cash acquired

–

(3,881

)

Cash used by discontinued operations

(1,008

)

(1,116

)

Cash used in investing activities

(37,346

)

(36,640

)

FINANCING ACTIVITIES

Net repayments of revolving line of credit

(20,170

)

(17,794

)

Principal repayments of lease liabilities

(1,599

)

(1,515

)

Repayment of term credit and loan facilities

(922

)

(951

)

Repayment of insurance financing

(781

)

(960

)

Repayment of EDC loan

(2,333

)

–

Proceeds from insurance financing

692

935

Proceeds from EDC loan

10,000

6,000

Proceeds from shareholder loan

–

5,000

Dividends paid

(5,349

)

(5,349

)

Issuance of shares through exercised options

–

Cash used by discontinued operations

(64

)

(82

)

Cash used in financing activities

(20,526

)

(14,681

)

Net (decrease) increase in cash and cash equivalents

(72

)

2,076

Effect of change in exchange rates on cash

(493

)

(771

)

Cash and cash equivalents, beginning of year

3,441

2,136

Cash and cash equivalents, end of year

2,876

3,441