Subex Q1 net up 381%, to hive-off services biz

The acquisition of telecom operations support systems solutions provider Syndesis in January last fiscal helped Subex Azure achieve an over four-fold growth in net profit for the quarter ended June 30, 2007.

Subex Azure, which provides revenue maximisation solutions for telecom operators, posted a 382% growth in profit after tax (PAT) for the quarter ended June 30, 2007 to Rs 22 crore. The revenue in the quarter grew 202% to Rs 131.7 crore on a consolidated basis as compared to the corresponding quarter in the FY2006-07.

The company achieved this growth in the wake of a significant increase in its product revenue, which grew by over 377% to Rs 21 crore as compared to the figure a year ago.

Subash Menon, founder chairman, MD & CEO, Subex Azure said: "Post the Syndesis acquisition, the industry has positively acknowledged the expansion of our product offerings which now include fulfillment and assurance solutions, taking us one step closer to our goal of becoming one of the leading operations support systems players in the world".

During the last quarter, Subex Azure integrated Toronto-based Syndesis to itself. The company said this resulted in resources being deployed on integration activities thereby leading to the deferment in the execution of some projects. "This deferment has depressed the product revenue which otherwise would have been higher," the company said adding the deferment was a temporary phenomenon and would be corrected in the subsequent quarters.

The company is set to hive-off its services business into a separate subsidiary. Services business accounted for nearly 33% of the company's topline in FY07. The company, in a statement said, it is seeking requisite approvals for the proposal.