BSS provider Subex has wrapped the second quarter of its 2012 fiscal year with some more strong results.
For the quarter ending Sept. 30, 2011, revenue for Subex's continuing product business (business optimization or RMS) segment was up 26 percent over the same period a year ago. With the sale of its Activation products, Subex is now putting more emphasis on this part of its business, which the company says is the fastest growing segment in telecom BSS.
Overall, product revenue was up 18 percent for the quarter and EBITDA (earnings before interest, taxes, depreciation and amortization) was up more than 32 percent. Net consolidated revenue for the quarter was up a little more than 3 percent – to Rs. 1,288.93 million ($27.56 million U.S.) – compared to Q2 2011. Net profit, before exceptional items, was up nearly 27 percent year-over-year, at Rs. 248.67 million ($5.32 million U.S.)
Product revenue contributed to more than 91 percent of consolidated revenue.
“The results for this quarter are extremely promising, as expected," said Subash Menon, founder chairman, managing director and CEO, Subex. "We sold off our activation business this quarter and have renewed our focus on our core business. There is increasing uptake for our industry-changing Revenue Operations Center (ROC) and Managed Services offering and the non-linearity in the business continues to help us."
And this could be just the beginning of growth for the India-based company.
"With the sale of the Activation products which were a drag on our core business, the real growth and profitability in the latter will be obvious in the coming quarters," added Menon. "The strong EBITDA of around 40% in this business will lead to significant cash generation in the future and increase our ability to invest for growth."
