| Subash Menon, president and chief executive officer of Subex Systems, says, "This restructuring is aimed at improving focus of the company on products and further its transformation into a pure products player." |
| Subex operates in the telecom space and within it the revenue maximisation niche with successful solutions in fraud management and revenue assurance. |
| Recent acquisitions have started bearing results as their integration is almost complete and have contributed 22 per cent to the products revenue this quarter. |
| Continuing operations have also posted excellent growth by contributing 78 per cent to the products' revenue. Profitability is continuing to increase as a result of the growing contribution of products to overall revenue, Menon said. |
| Subex acquired a fraud management software package from French telecom equipment maker Alcatel, making the Indian start-up the global leader in the segment, pushing printer and computer maker Hewlett-Packard to the second place. Products from other recent acquisitions, including Lightbridge and Magardi, are integrated into Subex's portfolio, he said. |
| Last year, Subex earned some 55 per cent of its Rs 89 crore revenues from services, but products are most profitable and grew 60 per cent last year, Menon said. |
| The company now has around 10 per cent share of the $200 million global market for revenue maximisation. It expects to grow the share to 15-20 per cent of the market which in three to four years will be $300 million in size. This works out to a product revenue of $60 million by 2009. |
| Subex sees itself primarily as a product company and its product revenue has grown from $4 million two years ago to $9 million in 2003-04 and is slated to reach $12 million in the current year. |
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