Maturity of Subex’s FCCBs Being Extended

BANGALORE, INDIA Subex Ltd, a leading global provider of Business Support Systems (B/OSS) for Communications Service Providers (CSPs), announced today that RBI has approved the extension of the maturity period of all the outstanding FCCBs to 9th July, 2012. This extension was sought by the company to have adequate time to complete the re-structuring activity that it is undertaking with the existing bondholders. Subex has convened a meeting of the bondholders on the 6th of March, during which meeting the bondholders are expected to approve this extension. With the approval, the extension process will be complete paving the way for the second stage.

“We are working on a complete re-structuring of the FCCBs with the existing bondholders and that has been contemplated as a two-step process. As we need 3 to 4 months to complete the plan, we decided to go for a two-step process. The first step is extension of the maturity period to give us adequate time to complete the second step. That first step is now moving towards a logical closure by the 6th of March”, said Mr. Subash Menon, Founder Chairman, Managing Director and CEO.

The second step is expected to result in some of the bonds getting converted to equity thereby reducing the overall debt and improving the debt-equity ratio. Once completed, this step will strengthen the balance sheet adequately. “I am glad to state that we are progressing well towards a full and final solution for the FCCB issue. We are hopeful of receiving the regulatory approvals required to complete the process in a timely manner”, he further added.

About Subex Limited
Subex Limited is a leading global provider of Business Support Systems (B/OSS) that empowers communications service providers (CSPs) to achieve competitive advantage through Business Optimisation – 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 Optimisation 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

Subex to Extend Maturity of Existing FCCBs

Bangalore, India Subex Ltd, a leading global provider of Business Support Systems (B/OSS) for Communications Service Providers (CSPs), has decided to apply to the Reserve Bank of India for an extension of the maturity dates of it’s outstanding Foreign Currency Convertible Bonds (“FCCBs”) from 9th March, 2012 to 9th July, 2012. The company will also convene a meeting of the bondholders seeking their approval for this extension.

The company will continue its discussion with the bondholders to evolve a comprehensive re-structuring plan for the FCCBs. “The re-structuring plan being explored cannot be implemented within the next 30 days when the bonds will become due. Hence the plan to seek a short extension to ensure that we have adequate time to execute the plan. We are quite confident of arriving at a long term solution to address the FCCBs with the active support of the bondholders”, said Mr. Subash Menon, Founder Chairman, Managing Director and CEO, Subex Limited.

Subex has been improving it’s performance over the past few quarters and had registered 8% sequential growth and 20% Q-o-Q growth in Continuing Business Product Revenue in the 3rd quarter of the current financial year.

Subex Ltd. enters into an Agreement to Sell its Activation Business to NetCracker

Bangalore, INDIA – Subex Ltd, a leading global provider of Business Support Systems (B/OSS) for Communications Service Providers (CSPs), announced today that it has signed an Asset Purchase Agreement with NetCracker for the sale of its Activation business. NetCracker is a leading Telecom OSS player and part of the US$ 40 Billion NEC group. The Activation business that is being sold off consists of Service Fulfilment solution (NetProvisioning, NetOptimizer and Vector).

Subex estimates its addressable market size in 2011 to be US$ 1.56 Billion and is the market leader in the global Business Optimisation market which includes fraud, revenue assurance, analytics, cost management and credit risk management (source: Analysis Mason 2011**). The decision to sell the Activation business is an outcome of a change in Subex strategy to focus on its core products, i.e. ROC Solutions (Revenue Assurance, Fraud Management, Partner Settlement, Data Integrity Management etc.) and Managed Services.

Commenting on the development, Subash Menon, Founder Chairman, Managing Director and CEO said, “The market is changing and so are the operator’s needs, to remain competitive. Market evolution is towards solutions that allow CSPs to combine data with insights to trigger customer centric near real time decisions. This enables operators to deliver superior customer experience profitably. Being the leader in the Business Optimisation space, Subex is strategically positioned to take advantage of these growth areas through its ROC and Managed Services Portfolio. Hence we have taken a strategic decision to focus on our core products, i.e. ROC Solutions (Revenue Assurance, Fraud Management, Partner Settlement, Data Integrity Management etc.) and Managed Services.”

He further added, “This decision and the renewed focus will enable us in growing our revenues over 20% annually with positive growth in EBITDA and will make us a significant force in the industry.”

The company is bullish on its core business line as seen in FY12 Q1 results where the Order Intake for ROC Portfolio grew 63.12% at US $ 23m up from US $ 14.1m in FY11 Q1. Net Profit for the company grew 424.46% at Rs. 132.27 m up from Rs. 25.22 m in FY11 Q1. The company’s current qualified pipeline for the continuing business is worth US$ 350 million.

Subex is committed to its core business line and will continue to invest substantially in solutions and enhancements.. The company recently won the Global Telecoms Innovation Award for 2011 for its ROC Fraud Management solution and has been leaders in the Business Optimisation space for four consecutive years according to Analysys Mason.

Business Leader and mentor Sanjeev Aga joins Board of Subex Ltd. as Independent Director

Bangalore, INDIA – Subex Ltd, a leading global provider of operations and business support systems (OSS/BSS) for communications service providers, announced today the appointment of Mr. Sanjeev Aga as an Independent Director on the Board of Subex Limited.

Sanjeev Aga’s career has traversed 38 years from sectors such as consumer and services, entertainment, light engineering and telecommunications. He is the former Managing Director of Idea Cellular.

Commenting on the appointment Mr. Sanjeev Aga said, “Subex, over recent years, has marked itself out as a company to watch. With its unique suite of product and service offerings, the coming years hold even bigger promise for Subex. It is my privilege to associate with Subex and its team”.

Commenting on the appointment, Subash Menon, Founder Chairman, Managing Director and CEO of Subex, said, “Mr. Sanjeev Aga is a seasoned business leader and we are extremely pleased to have someone of his calibre and expertise join our Board. At Subex, we are confident that with him on the team, we will continue to hold our position as leaders in the OSS/BSS industry. We are indeed fortunate to have him with us at this juncture of our evolution and growth”.

In a business career commencing 1973, Mr. Sanjeev Aga held senior positions in Asian Paints, Chellarams (Nigeria), and Jenson & Nicholson.  In 1987, he joined Blow Plast to head the Furniture business, became Chief Executive of Mattel Toys in 1990, and in 1993 was appointed Managing Director of Blow Plast with multi-business responsibility including VIP Luggage.

In November 1998, Mr. Aga was appointed CEO of the telecom JV, Birla AT&T.  He led the company through expansions, mergers and acquisitions to be CEO of Birla Tata AT&T, which was renamed Idea Cellular.  In 2002, Mr. Aga left Idea to be with the Aditya Birla Group, where from May 2005 until October 2006, he was Managing Director of Aditya Birla Nuvo, a conglomerate spanning diverse group businesses. With Idea’s shareholding changing to become an Aditya Birla group entity, November 2006 saw Mr. Sanjeev Aga back as Managing Director. The next four years were a period of progress for Idea. The company improved its national market position from No.6 to No.3, joined the ranks of the 10 biggest global telcos, and became a highly regarded company in a hyper-competitive sector.

For 2009, Idea Cellular was named the ‘ET Emerging Company of the Year’, and for 2010, Forbes India magazine shortlisted Mr. Sanjeev Aga as a ‘Person of the Year’.

Mr. Sanjeev Aga is an Honours graduate in Physics from St. Stephen’s College, Delhi (1971) and a post graduate from the Indian Institute of Management, Kolkata (1973).  He is based in Mumbai, and now engages in advisory and consultant roles for corporates and not-for-profit organizations. He reads widely, speaks, and occasionally, writes.

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