Subex Ltd, providers of business support systems for communications service, saw a net loss of Rs 12.95 crore in the quarter ended September 2011, compared with a profit of Rs 30.72 crore in the same quarter last year. Mr Subash Menon, Founder Chairman and Managing Director and CEO, was upbeat that with the sale of the activation products which were a drag on the company's core business, the real growth and profitability will be seen in the coming quarters.
The company recently sold its activation business to NetCracker, a telecom OSS player part of the $40-billion NEC group as part of its strategy to focus on its core products.
“EBITDA of around 40 per cent in this business will lead to significant cash generation in the future and increase our ability to invest for growth,” he added. Its consolidated revenue during the quarter stood at Rs 128.89 crore (Rs 1,24.76 crore) with product revenue at Rs 117.765 crore contributing to 91.37 per cent of the consolidated revenue.