The story of Subex’s full year results for the financial year 2009-10 is a continuation of what we saw after their last quarterly results. They are a smaller business, with lower revenues. However, they are a leaner business, with lower costs and greatly improved profitability. Revenues for the year were USD 96.9m, even lower than the USD 100m I had expected. Net profits were greatly improved, at USD 21m. Ignoring exceptionals, Subex is a fundamentally profitable business again.
It is not hard to see the driver for this change. Orders for FAS products have fallen off the cliff whilst orders for products relating to Revenue Management have improved slightly. The message here is that a big fall in sales need not be a bad thing – if what you were selling was not profitable anyway.
You can see the press release here.