SUBEX’S DEAL WITH BT HELPS IN REVENUE GROWTH

The Hindu Business Line

Subex’s $50-million order win with British Telecom provides long-term revenue flow for the company and also provides a boost towards achieving its 2008-09 revenue guidance.

The deal is spread over three years and envisages Subex providing services such as interconnect billing and international billing and settlements. A couple of Subex’s products are also to be used for a different set of services, which provides scope for better realisations.

Subex had given a revenue guidance for $125 million for the current fiscal. With an order backlog of $85 million, this deal provides a boost towards achieving its guidance.

The company has had project delays and delays in execution as a result of which it has been reporting net losses for the last few quarters.

The market seems to have given thumbs down as the stock has lost nearly 74 percent this year. With $180 million of FCCBs redemptions to contend with in 2012 and its share price plummeting, the balance sheet may remain quite strained for Subex.