The Hindu Business Line : Subex Q3 loss narrows on improved revenue

Bangalore, Jan. 30 Subex Ltd has reported a lower third-quarter loss of Rs 4.27 crore, compared with a loss of Rs 34.82 crore in the second quarter, citing improved revenue and stabilisation in cost. Revenue increased 38.1 per cent sequentially to Rs 142.21 crore, the company said in a statement.

“We have significantly improved the revenue and have reduced costs as compared to the last quarter. This is proof of the near completion of the integration of Syndesis and the fact that cost re-structuring of the acquired entity is on track,” Mr Subash Menon, Founder Chairman, Managing Director & Chief Executive, said.

For the latest quarter, revenue from product increased 55.4 per cent sequentially to Rs 111.24 crore and the new order intake was Rs 110 crore, compared with Rs 59 crore in the second quarter, Subex said in a statement.

The operational cost of the products business was reduced by Rs 16 crore, compared with the second quarter, it added.

Lay off in US, Canada

Mr Menon said the reduction in the operational cost of the products business was largely achieved by laying off employees in the US and Canada, and adding to the workforce in India.

He said as of now, the company has let go about 100 people in US and Canada, while adding about 170-180 people in India.

In the second quarter, the company had to divert people from continuing projects due to the integration, and certain projects could not be completed, which led to the loss. He said it was expected to some extent, but the company had not expected to pull people out of continuing projects.

Meets expectation

Mr Menon said the third-quarter results were according to the company’s expectation.

He said less than 10 per cent of the integration is left, and they expect to complete it by Thursday. The acquisition would add to earnings in the next year, he added.

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