UPDATE 2-Sandvine gets contract from Japan’s NTT, shares jump

* Financial terms of deal not disclosed

* Shares rise 13 pct
(Recasts; adds details, analyst comments, updates share
movement)

By Koustav Samanta

BANGALORE, Feb 1 (BestGrowthStock) – Network equipment maker
Sandvine Corp (SVC.TO: ) received a contract from Japan’s NTT
Communications Corp to deploy its Policy Traffic Switch (PTS)
on NTT’s high speed network in Japan, sending Sandvine’s shares
up as much as 13 percent.

The PTS platform provides broadband and wireless network
operators with services like capacity planning and quota
management.

Financial terms of the contract were not disclosed.

“Based on our back-of-the-envelope analysis, we believe
this contract could be worth in the range of C$20 million to
C$40 million over a three-year deployment period,” Canaccord
Adams analyst Eyal Ofir said in a note to clients.

Ofir, who has a “speculative buy” rating on the stock, said
he expects Sandvine to return to profitability, and have a
strong 2010 in terms of revenue growth.

The company did not provide any specific revenue
expectation from its new contract.

“Sandvine will experience continued momentum in the
wireless market upgrade cycle, with a number of clients
deploying its next-gen product, ongoing diversification of its
revenue, and finally, potential conclusion to anticipated FCC
guidelines that will kick-start U.S. demand,” analyst Ofir
said.

Shares of Waterloo, Ontario-based Sandvine were up 12
percent, or 16 Canadian cents, at C$1.46 Monday afternoon on
the Toronto Stock Exchange. Earlier the day, they touched a
high of C$1.47.

Investment Tools
(Reporting by Koustav Samanta, additional reporting by Abhiram
Nandakumar; Editing by Unnikrishnan Nair)

UPDATE 2-Sandvine gets contract from Japan’s NTT, shares jump