Intel Capital halves stake in Subex Systems

Intel Capital has drastically reduced its holding in Subex Systems by more than 50 per cent since November last year. Intel Capital's holding as on February 4, 2005 stands at 4.073 per cent against 10.36 per cent at the end of second quarter ended September 2004.

Intel Capital has sold over one lakh shares in February aggregating just over 1 per cent of the total share capital of the company.

The mode of sale is through the market and the shareholding of Intel Capital Corporation after this sale is 3.78 lakh shares amounting to 4.073 per cent of the total share capital of the company, Subex has announced. Company officials were not available for comment.

Intel has been gradually shedding their holding during the third quarter of the current fiscal when they sold 2.6 per cent during November subsequent to which they sold a further 3.018 per cent.

The company, which offers software products for telecom service providers for fraud management and revenue maximisation, reported net profit of Rs 8.42 crore for the three months to December 2004, up 63.6 per cent year on year.

Revenues for the quarter were at Rs 33 crore, up 44.4 per cent year on year. The board had recommended an interim dividend of 10 per cent on the company's equity share capital.

As per the guidance for FY05 issued by the company, product revenues are to grow by about 30-35 per cent. The service business is to grow by 7-10 per cent while overall revenue growth will be 15 - 20 per cent and net profit should grow by 25 - 30 per cent.

Subex also in the recent past hived off its services business into a separate subsidiary to focus more on its products business.