Vecima Networks (TSX:VCM) is a globally recognized leader in creating breakthrough technology solutions that empower network service providers and content providers to connect people and enterprises to information and entertainment worldwide. Vecima products for the cable and broadcast industries provide service providers with cost-effective solutions for both video and broadband access. The company’s end-to-end solution spans across several areas, beginning at the camera and ending with high-speed broadband access and high-quality video delivery.
Vecima designs, assembles, tests, and markets software and hardware products that facilitate the communication between customer premise video equipment and a cable operator’s core network. The company delivers and adapts content to video networks for legacy services, provide broadband data services and store content to enable time-shifted video services.
Diversified customer base
The company’s products automate content-processing workflows from ingestion to delivery and are primarily directed towards the video and broadband service provider market and content provider market. Specializing in small- to medium-sized fleets in North America, Vecima’s brands target the service fleet vertical and commercial trucking clients.
Further, the content delivery and storage business provides software and solutions in the video-on demand and video content delivery space providing breakthrough technologies in the storage, protection, transformation, and delivery of video assets on a global basis. Daily, it serves industries and customers that demand uncompromising performance, reliability, and flexibility to gain a competitive edge, drive meaningful growth, and confidently deliver best-in-class global solutions to millions of people.
Also, Vecima’s products incorporate sophisticated hardware and software developed within the company’s research and development facilities. Examples of the types of technologies incorporated within Vecima’s solutions include content-workflow processing, content-delivery networks, video storage, and video transcoding. In addition to these technologies, Vecima’s embedded software also facilitates the implementation of other network functions, such as media access control and embedded system management.
Sales and distribution are Vecima’s competitive advantages. It sells products directly, through distributors, to service and content providers. Major supply agreements with several key customers are currently in place. Recently, Vecima has placed a continued emphasis on direct sales to end customers. Telematics services are sold through indirect channels to organizations subscribing to a real-time web-based service for tracking fleet and other assets throughout North America.
Valuable intangible assets
The principal market for the majority of Vecima’s solutions is North America. The largest competitors to Vecima’s product offerings or system solutions come from North American-based organizations. The competition within the video and broadband space includes other broadband access technology companies that are developing product solutions.
Vecima creates and protects the company’s intellectual property using a combination of contractual provisions, copyrights, trademarks, trade secrets, licences, and patents. As a condition of employment, Vecima enters intellectual property assignment agreements with all new employees. In addition, when it is considered to be advantageous, Vecima leverages intellectual property and accesses third-party intellectual property by entering commercial licences and cross-licences. In addition to 30 issued patents that Vecima holds, there are further patents pending that have significant value.
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Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.