Subex’s Net Profit Grows 112% while EBITDA Grows 26%

27 January 2011,

Bangalore, INDIA – Subex Ltd, a leading global provider of Operations and Business Support Systems (OSS/BSS) for Communications Service Providers, announced today that it has recorded consolidated revenue of Rs. 1,267.72 mln (US $ 27.83 mln) for the third quarter of FY11. The PAT (before Exceptional Items) for the same period stood at Rs. 240.41 mln (US $ 5.28 mln) as compared to Rs. 113.81 mln (US $ 2.5 mln) in the corresponding quarter of FY10 and Rs. 196.03 mln in FY11Q2. Thus, PAT before Exceptional Items has grown by 112% Y-o-Y.

Product revenue for FY11 Q3 was at Rs. 1111.84 mln (US $ 24.4 mln), amounting to 87.7 % of the overall revenue for the period.

The company posted a product EBITDA of Rs. 378.36 mln i.e. 34.03% as against Rs. 299.77 mln i.e. 27.89%, in the corresponding quarter of FY10 Q3. Consolidated EBITDA for the period stood at Rs. 386.63 mln (US $ 8.49 mln).

Commenting on the business, Subash Menon, Founder Chairman, Managing Director and CEO, Subex Limited said, “We have recorded a strong turn around during this financial year on the back of several long term contracts. The changing nature of our contracts is leading to deeper relationships with our customers and better visibility and stability. This is evident from the steep increase in annuity component from 32% to 42% of revenue. We expect it to further increase to 55%+ in the next 2 years.”

He further added, “We have seen strong traction for our ROC® and Managed Services offering, with multiple million dollar customer wins across geographies during this quarter. We are confident to end this financial year on an extremely positive note as we continue to witness growth in revenue and higher EBITDA in the Product business.”

About Subex Limited
Subex Limited is a leading global provider of Operations and Business Support Systems (OSS/BSS) that empowers communications service providers (CSPs) to achieve competitive advantage through Business Optimisation and Service Agility – thereby enabling them to better operational efficiency to deliver enhanced service experiences 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 new service creation, operational transformation, subscriber-centric fulfillment, provisioning automation, revenue assurance, cost management, data integrity management, fraud management and interconnect / inter-party settlement.

Subex’s customers include 36 of the world’s 72 biggest* telecommunications service providers. The company has more than 300 installations across 70 countries.

* Forbes’ Global 2000 list, 2009

Jan, 27, 2011