(Reuters) - Network equipment maker Sandvine Corp SVC.TO reported a third-quarter loss as margins fell.
The company provides equipment and software that help internet service providers manage network congestion and lower undesirable traffic.
Sandvine lost $900,000, or 0.6 cent per share, in the June-August quarter, compared with earnings of $1.7 million, or 1.2 cent per share, a year earlier.
Revenue fell 16 percent to $21.8 million.
Gross margins dropped to 70 percent from 76 percent.
Sandvine reported smaller-than-expected second-quarter revenue due to delays in closing several projects with Telefonica SA (TEF.MC). The Spanish telecom company accounted for 17 percent of Sandvine’s fiscal 2011 revenue.
Shares of Waterloo, Ontario-based Sandvine closed at C$1.20 on Wednesday on the Toronto Stock Exchange.
Reporting by Shounak Dasgupta in Bangalore; Editing by Maju Samuel