News

Subex Ltd. announces FY12 Q2 results

Profit Grows Non linearly by 75% sequentially to Rs. 248.67 mln

• Product revenue grows 18% sequentially
• Product EBITDA improves to 32.41%

Quarter ended 30 September 2011 – Key Highlights

• Net Consolidated Revenue at Rs. 1288.93 mln (USD 27.56 mln), up from Rs. 1,247.61 mln (USD 26.68 mln) in FY11 Q2
• Net Profit (before exceptional items) at Rs. 248.67 mln (USD 5.32 mln) up from Rs. 196.03 mln (USD 4.19 mln) in FY11 Q2
• Revenue from Products at Rs. 1177.65 mln (USD 25.18 mln)

Bangalore, INDIA -Subex Ltd, a leading global provider of Business Support Systems (BSS) for Communications Service Providers, announced today that it has recorded strong growth and profitability in its Continuing Product Business (Business Optimization or RMS). Revenue for this segment has grown 26% Y-o-Y. Consequent to the sale of its Activation products, the company will put more emphasize in Business Optimization or RMS. This segment, which is the area in which the company has been operating traditionally, is the fastest growing segment in telecom BSS space.

The Product Revenue for the company stood at Rs. 1177.65 mln (USD 25.18 mln) contributing to 91.37 % of the consolidated revenue. The company posted a Product EBITDA of Rs. 381.66 mln (USD 8.16 mln) i.e. 32.41% while the EBITDA for Continuing Product Business (Business Optimization or RMS) was Rs. 451.81 (USD 9.66 mln) i.e. 41.7%.

The company was declared market leaders in Business Optimization for the fourth consecutive year by renowned analyst firm Analysys Mason. Business Optimisation includes fraud, revenue assurance, analytics, cost management and credit risk management, which together constitutes the core business of the company.

Commenting on the business, Subash Menon, Founder Chairman, Managing Director and CEO, said, “The results for this quarter are extremely promising, as expected. We sold off our activation business this quarter and have renewed our focus on our core business. There is increasing uptake for our industry-changing Revenue Operations Center (ROC^®) and Managed Services offering and the non-linearity in the business continues to help us.”

He further added, “With the sale of the Activation products which were a drag on our core business, the real growth and profitability in the latter will be obvious in the coming quarters. The strong EBITDA of around 40% in this business will lead to significant cash generation in the future and increase our ability to invest for growth.”

About Subex Limited
Subex Limited is a leading global provider of Business Support Systems (BSS) that empowers communications service providers (CSPs) to achieve competitive advantage through Business Optimization - thereby enabling them to improve their operational efficiency to deliver enhanced service experience to subscribers.

The company pioneered the concept of a Revenue Operations Center (ROC^®) - a centralized approach that sustains profitable growth and financial health through coordinated operational control. Subex's product portfolio powers the ROC and its best-in-class solutions enable revenue assurance, fraud management, data integrity management, cost management and interconnect / inter-party settlement. Subex also offers a scalable Managed Services program and has been the market leader in Business Optimization for four consecutive years. Subex has been awarded the Global Telecoms Business Innovation Award for 2011 along with Swisscom for industry's first successful Risk Reward Share model for fraud management.

Subex's customers include 16 of top 20 wireless operators worldwide* and 26 of the world's 50 biggest^# telecommunications service providers. The company has more than 300 installations across 70 countries.

*RCR Wireless list, 2010
#Forbes' Global 2000 list, 2010