Bangalore: Subex Ltd, a leading global provider of Operations and Business Support Systems (OSS/BSS) for Communications Service Providers, announced today that it has recorded consolidated revenue of Rs. 1,267.72 mln (US $ 27.83 mln) for the third quarter of FY11. The PAT (before Exceptional Items) for the same period stood at Rs. 240.41 mln (US $ 5.28 mln) as compared to Rs. 113.81 mln (US $ 2.5 mln) in the corresponding quarter of FY10 and Rs. 196.03 mln in FY11Q2. Thus, PAT before Exceptional Items has grown by 111.25% Y-o-Y.

Product revenue for FY11 Q3 was at Rs. 1111.84 mln (US $ 24.4 mln), amounting to 87.7 % of the overall revenue for the period.

The company posted a product EBITDA of Rs. 378.36 mln i.e. 34.03% as against Rs. 299.77 mln i.e. 27.89%, in the corresponding quarter of FY10 Q3. Consolidated EBITDA for the period stood at Rs. 386.63 mln (US $ 8.49 mln).

Commenting on the business, Subash Menon, Founder Chairman, Managing Director and CEO, Subex Limited said, “We have recorded a strong turn around during this financial year on the back of several long term contracts. The changing nature of our contracts is leading to deeper relationships with our customers and better visibility and stability. This is evident from the steep increase in annuity component from 32% to 42% of revenue. We expect it to further increase to 55%+ in the next 2 years.”

He further added, “We have seen strong traction for our ROC^TM and Managed Services offering, with multiple million dollar customer wins across geographies during this quarter. We are confident to end this financial year on an extremely positive note as we continue to witness growth in revenue and higher EBITDA in the Product business.”

Statement-

“Exceptional items are non operational in nature as they are only related to re-statement of FCCB liability in rupee terms, consequent to the change in rupee-dollar foreign exchange rate. The operational profit is arrived at by excluding exceptional from the quarter figures in each quarter. Thus the operational PAT for FY11Q3 is Rs. 240.41 mln (US $ 5.28 mln) up from Rs. 113.81 mln (US $ 2.5 mln) in FY 2010 Q3. That is a growth of 112% in net profit for Subex in FY11Q3.”

“Exceptional items comprise exchange differences arising on (a) restatement of Foreign Currency Convertible Bonds and (b) restatement/settlement of intra group foreign currency loans and advances and Managerial Remuneration of prior years approved by the Central Government during the current quarter.”