WATERLOO — Sandvine Corp. is receiving a five-year research and development funding commitment from the Ontario government that is worth up to $25.5 million.
Under the agreement with the province, Sandvine, a maker of broadband networking equipment that manages the flow of web traffic, is eligible for 11 per cent of about $170 million worth of R&D spending over five years, up to a maximum of $18.7 million.
Also, if it hits certain job targets, it is eligible to get funding for an additional four per cent of the costs up to a maximum of another $6.8 million, Sandvine announced today.
The company hasn’t revealed details of the research and development projects or how many jobs are being created.
Jennifer Ross, a spokesperson for Sandvine, said the company is working with the province to schedule a formal announcement where more details will be released.
The company, founded in 2001, employs 300 people, including 250 at its facility on Albert Street in Waterloo.
Dave Caputo, Sandvine’s president, said in a news release that the funding provides Sandvine with a “tremendous opportunity” to advance its research and development activities.
The growing wireless market has generated a surge in sales for Sandvine. The company is expanding its business with mobile and digital subscriber line (DSL) internet service providers and is gaining more international customers.
Revenue from DSL and mobile markets increased by more than 80 per cent, while revenue outside North America grew by more than 60 per cent in the company’s fiscal 2009.
The company’s efforts to boost sales in the wireless market got a $1-million boost from federal government funding last fall.
At the time, Caputo said data expansion on mobile networks has been “growing incredibly.”