Subex: New $3M Order, Optimism for 2011

It has been a good year for Subex, and they will finish it on a high after winning a USD3M deal to deploy their ROC fraud management, revenue assurance and data integrity platform for an unnamed Asian operator. You can read the press release here. Earlier this month Subex announced the deployment of the ROC FMS and RA system in West Africa’s Atlantique Telecom.

Recent interviews with Subex boss Subash Menon reveal that he expects his business to post even better results in 2011. He predicted EBITDA would improve from 32% in 2010 to 35-36% in 2011, and that revenues would grow by 15%; see here. Some of this improvement will be driven by larger contracts that include managed services, and because managed services will contribute a larger share of overall revenues. Menon predicted managed services will grow from representing 15% of revenues this year to providing 25-30% of revenues within a couple of years; see here. That would be particularly good news for investors, as managed services deliver more reliable ongoing revenues than one-off implementation projects.

Eric Priezkalns
Eric Priezkalns
Eric is the Editor of Commsrisk. Look here for more about the history of Commsrisk and the role played by Eric.

Eric is also the Director of the Risk & Assurance Group (RAG), a global association of professionals working in risk management and business assurance for communications providers.

Previously Eric was Director of Risk Management for Qatar Telecom and he has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and other telcos. He was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.