07:52 AM EST, 02/13/2025 (MT Newswires) -- Vecima Networks ( VNWTF ) on Thursday said it swung to a loss in the second quarter as it faced "transitory headwinds," foreign exchange volatility and one-time restructuring costs. Revenue rose 15%.

The company reported a net loss of $7.9 million for the three months ended Dec. 31, compared with a net profit of $3.6 million, a year earlier. The adjusted loss per share for the quarter was $0.25 compared with an adjusted profit per share of $0.15 a year earlier.

"We faced transitory headwinds in the second quarter related to a temporary shift in our product mix and adjustments in the timing of some of our largest customers' cable and fiber upgrades. This, along with foreign exchange volatility and one-time restructuring costs, collectively led to a negative impact on our bottom-line results for the Q2 period," said Vecima Chief Executive Sumit Kumar.

Total revenue increased to $71.2 million in the quarter compared with a year-ago figure of $62 million.

"Going forward, we recognize that demand volatility could continue into the second half of fiscal 2025 depending on customer project timing. Delays to date have primarily reflected ongoing system level field qualifications, which are typically challenging for customers undertaking very large system upgrades. Vecima's technology has performed exceptionally well through these qualification processes, and we anticipate increased product rollouts once qualifications are completed, the CEO said.

The company said the prospect of trade actions between the U.S. and Canada has added further uncertainty to the company's outlook.

"With about 90% of our sales in the U.S., an estimated half of which we believe could potentially be exposed to tariff actions, we are underway with plans to mitigate potential risks, regardless of the outcome of current trade discussions," Kumar said.

Shares of the company closed down $0.22, or 1.9%, to $11.38 on Wednesday on the Toronto Stock Exchange.