Subex Ltd, a leading global provider of Business Support Systems (BSS) for Communications Service Providers (CSPs), has obtained Board approval to raise up to US $ 135 million. This is subject to the approval of the shareholders at the Extra-ordinary General Meeting of the Members to be held on December 28, 2011.
The company has two tranches of Foreign Currency Convertible Bonds (FCCBs) with a total redemption value of USD $ 131 million, which it needs to redeem in March 2012 and the current fund raise is to meet that obligation. Subash Menon, Founder Chairman, Managing Director and CEO, Subex Limited said, “We intend to raise the required amount through debt or equity or a combination of the two.”
He further added, “We are clearly committed towards our customers and investors and are confident of the future of the business seeing the increasing traction for the company’s industry leading ROC® and Managed Services offering.”
Subex has been recording strong growth and profitability in its Continuing Product Business (Business Optimization or RMS). In Q2, revenue for this segment grew 26% Y-o-Y. Consequent to the sale of its Activation products, the company has 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.
During the recently concluded FY12 Q2 results, the Product Revenue for the company stood at Rs. 1177.65 mln (USD 25.18 mln) accounting for 91.37 % of the consolidated revenue. The company posted a Product EBITDA of Rs. 381.66 mln (USD 8.16 mln) i.e. 32.41% while the EBITDA for Continuing Product Business (Business Optimization or RMS) was Rs. 451.81 (USD 9.66 mln) i.e. 41.7%.
Subex Limited is a leading global provider of Business Support Systems (BSS) that empowers communications service providers (CSPs) to achieve competitive advantage through Business Optimization – thereby enabling them to improve their operational efficiency to deliver enhanced service experience to subscribers.
The company pioneered the concept of a Revenue Operations Center (ROC®) – a centralized approach that sustains profitable growth and financial health through coordinated operational control. Subex’s product portfolio powers the ROC and its best-in-class solutions enable revenue assurance, fraud management, data integrity management, cost management and interconnect / inter-party settlement. Subex also offers a scalable Managed Services program and has been the market leader in Business Optimization for four consecutive years. Subex has been awarded the Global Telecoms Business Innovation Award for 2011 along with Swisscom for industry’s first successful Risk Reward Share model for fraud management.
Subex’s customers include 16 of top 20 wireless operators worldwide* and 26 of the world’s 50 biggest# telecommunications service providers. The company has more than 300 installations across 70 countries.
*RCR Wireless list, 2010
#Forbes’ Global 2000 list, 2010
For more information please visit www.subex.com