Subex FY10 Results: Leaner and Fitter

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.

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 Chief Executive 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.