There were few surprises in the industry update that Telcordia President and CEO Mark Greenquist and his chief technology officer and strategy officer, Adan Pope, offered to analysts last week. In times such as these, perhaps that’s a good thing.
The company surprised itself a little by weathering the economic storm better than anticipated. Greenquist said that after growing revenue for the first time in eight years last year, the timing of the global recession was extra poor as it forestalled the company’s momentum. However, after anticipating a revenue decline of a few percentage points in fiscal 2010, Telcordia only lost between one and two percent.
Financially, Greenquist says the company is sound, having kept its eye on liquidity and managing its balance sheet. It still has $100 million cash on hand and another $80 million of untapped revolving credit. And there is no debt maturity on the horizon before 2016.
As expected, revenue from its RBOC customers fell, but Greenquist says it has stabilized due mainly to efforts by Telcordia to extend the functionality of its legacy deployments as well as a couple of new deals in that market.
Telcordia’s international revenue grew steadily and Greenquist says it will move to 30 percent or more by the end of the year.
“The last three years we have focused on growing the international share of revenue and being less dependent and concentrated in North America," Greenquist said.
The company remains organized around four business units: operations support systems, service delivery, interconnection and advanced technology research.
Anticipated growth in the interconnect business due to the new deployments around local number portability in India was delayed by project postponements. The nine percent Greenquist expected will come next year, he said.
Likewise in the Advanced Technology department. Projects for the Department of Defense have been put I hold. “In ATS, our government consulting and contract business ran into a headwind with the DoD’s change in priorities," Greenquist said. “But with our research thrust in network architecture, network management, cyber security, data exploitation and software engineering, we will [prevail]."
He also said the OSS business has stabilized. “We’ve had a consistent approach to increase the relevance of our core systems. We have been successful and seen them increasing," Greenquist said.