Subex announces FY14 Q1 Results PAT increases 246%, company successfully maintains EBIDTA > 19%

BANGLORE, INDIA  – Subex Ltd, a leading global provider of Business Support Systems (BSS) for Communications Service Providers, today announced its financial results for the first quarter ended June 30, 2013.

Performance Highlights for the quarter ended June 30, 2013

• Profit after Tax (PAT) for the quarter at Rs. 742 lacs (US$ 1.3 million)
  • Up by 246% from loss after tax of Rs. 509 lacs (US$ 0.9 million) in FY13Q1

• EBIDTA for the quarter at Rs. 1,519 lacs (US$ 2.7 million)
  • At 19.5% compared to loss of Rs. 66 lacs (US$ 0.1 million) in FY13Q1

• Product Revenue for the quarter at Rs. 7,776 lacs (US$ 14 million)
  • Up from Rs. 7,096 lacs (US$ 12.8 million) in FY13Q1
  • License & Implementation at 40%, Managed Services at 29% & Support at 32% of the total revenues

• Operating Profit ex-forex for the quarter at Rs. 1,453 lacs (US$ 2.6 million)
  • Up from a loss of Rs. 192 lacs (US$ 0.3 million) in FY13Q1

• Free cash flow of Rs. 3,832 lacs (US$ 6.5 million)

Surjeet Singh, CEO & Managing Director, Subex Limited said, “We are pleased with our operating results for the quarter. The business is stable, we are winning new customers and more importantly we are not only profitable on sustainable basis but also cash positive at operating level. Strategically, we are now expanding to help our customers manage network Capex through our path-breaking Asset Assurance portfolio which we believe will provide growth impetus to the company in coming period. Parallely, we are creating Subex 2.0 to move aggressively into Analytics to service our customers holistically.”

Vinod Kumar, Chief Operating Officer, Subex Limited said, “We have maintained the EBITDA at around 20% and increased our PAT by 246% through a sharpened focus on our core products and increased traction of our long-term sustainable Managed Services offering.” He added, “The first quarter of this financial year has been a record quarter for us, having won more than 10 key Managed Services contracts for our core offerings, mostly for Tier 1 operators in North America and Europe region. With positive market momentum and uptake on the concept of network capex management through ROC Asset Assurance, we are confident of gaining further traction and growing our revenues as we move forward.”

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 Optimisation – thereby enabling them to improve their 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 such as revenue assurance, fraud management, asset assurance, capacity management, data integrity management, credit risk management, cost management, route optimization and partner settlement.

Subex also offers a scalable Managed Services program and has been the market leader in Revenue Assurance and Fraud Management for 2 years in a row according to Gartner (2010 & 2011). Subex has also been enjoying market leadership in Business Optimisation for five consecutive years according to Analysys Mason (2007, 2008, 2009, 2010 & 2011). Business Optimisation includes fraud, revenue assurance, analytics, cost management and credit risk management. Subex has been awarded the Global Telecoms Business Innovation Award for 2012 along with Idea Cellular and 2011 along with Swisscom for fraud management. Subex has also been awarded the Global Market Share Leader in Financial Assurance 2012 by Frost & Sullivan.

Subex’s customers include 29 of top 50 operators^* and 33 of the world’s 50 biggest^# telecommunications service providers worldwide. The company has more than 300 installations across 70 countries.

*Total Telecom Top 500 Telecom Brands, 2013
^#Forbes’ Global 2000 list, 2013