Subex, a
provider of Business Support Systems (BSS) for Communications Service
Providers, posted revenues of INR 1289 million in Q2 FY 2012 as against INR
1248 million in Q2 FY 2011, clocking a marginal increase.

Subex reported net loss of INR 130
million in Q2 FY 2012 as compared with net profit of INR 307 million in Q2 FY
2011. The sale of activation business during the quarter affected both revenue
and profit.

Subex has recorded strong growth and profitability in its
Continuing Product Business (Business Optimization or RMS).

Revenue for this segment has grown 26 percent Y-o-Y.
Consequent to the sale of its Activation products, the company will put more
emphasize in Business Optimization or RMS. This segment, which is the area in
which the company has been operating traditionally, is the fastest growing
segment in telecom BSS space.

The Product Revenue for the company stood at Rs 1177
million contributing to 91.37 percent of the consolidated revenue. The
company posted a Product EBITDA of Rs 381 million i.e. 32.41 percent while
the EBITDA for Continuing Product Business (Business Optimization or RMS)
was Rs 451.81 million i.e. 41.7 percent.

The results for this quarter are extremely promising, as
expected. 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,” said Subash Menon,
founder chairman, managing director and CEO, Subex.

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. The strong EBITDA of around 40 percent in this
business will lead to significant cash generation in the future and increase
our ability to invest for growth,” Menon added.

By Telecomlead.com Team
[email protected]