VanillaPlus

Subash Menon, Subex Founder Chairman & CEO


Bangalore, India: Subex Ltd, a leading global provider of Operations and Business Support Systems (OSS/BSS) for communications service providers, announced yesterday that it has recorded consolidated revenue of Rs. 118.7 cr (US$ 26m), and consolidated net profit, before exceptional items, of Rs. 17 cr (US$ 3.7m) for the quarter ended 30 June 2010. Product revenue stood at Rs. 101.4 cr (US$ 22m) contributing to 85% of the consolidated revenue.

The company posted a product EBITDA of Rs. 32.6 cr, as against Rs. 20.1 cr in the corresponding quarter of FY 2010, indicating a jump from 14% in FY 2010 Q1 to 31% in this quarter. Consolidated EBITDA for the period stood at 26%, up from 16% in Q1 of FY 2010.

Commenting on the business, Subash Menon, Founder Chairman, Managing Director and CEO, said, “We are seeing increased interest in our ROC platform. Customers across the globe are also fast warming up to the Managed Services offering we provide. The significant improvements in the product and consolidated EBITDA in the first quarter of FY 2011 are testimony to this, and that is very encouraging for us. We are looking forward to a great year with increased adoption of our ROC offerings and deeper customer engagements.”

Subex has been enjoying more profitable times since the near-disastrous acquisition of Canada-based software provider, Syndesis for $164m in 2007. Syndesis had been valued internally by Subex (instead of by external independent valuers) at the time at four times its annual revenues of $42m. But when orders for Syndesis' products slowed dramatically following the acquisition, the Canadian firm looked over-valued to the market, which led to a precipitous collapse in its share price, falling at one point to just Rs 18 (US$ 0.38).

The company pioneered the concept of a Revenue Operations Centre (ROC), a centralised approach that sustains profitable growth and financial health through coordinated operational control. Subex's products enable new service creation, operational transformation, subscriber-centric fulfilment, provisioning automation, revenue assurance, cost management, data integrity management, fraud management and interconnect / inter-party settlement.

Today, Subex's customers include 36 of the world's 72 biggest telecoms service providers (source: Forbes’ Global 2000 list, 2009). The company has more than 300 installations across 70 countries.

* 1 crore = 10 million in the Indian numbering system