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Our Bureau

Bangalore Sept 17

Potential revenue loss from one its largest cross border customer – AT&T, plunged telecom software maker Subex Azure Ltd to a 52-week low on Monday.

Subex shares opened low on the BSE at Rs 475 and touched a 52-week low of Rs 416.25 in the intra-day trade, before recovering to close at Rs 445.10, a loss of 12.66 per cent over previous close.

Subex shares saw a loss of 17 per cent over the past one month and some 30 per cent since January 2007.

Subex lowered its revenue guidance for current financial year last Friday following the postponement of near-term capital expenditure commitments by a large North American client.

As a result, contracts to the tune of $20 million that Subex was to book from the client during the year would be postponed.

Subex did not disclose the client details, but market sources confirmed it was AT&T.

Telecom research firm Ovum RHK said in August that the North American wireline capital spending in the first half of 2007 was down nearly seven per cent compared to last year largely due to the AT&T spending cuts resulting from its merger with BellSouth.

Ovum RHK expects capital spending growth remain stalled through the rest of 2007 and into 2008

Terming the development as a one-off incident and was not a macro trend, Mr Subash Menon, CEO, Subex Azure, said adding the company saw good traction with its other customers.

Subex now expects a revenue of Rs 520 crore and a profit after tax of Rs 104 crore from its products business for 2007-08 as against the earlier projected revenue and profit after tax of Rs 615 crore and Rs 155 crore respectively.

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