The Hindu Business Line : Subex Azure net drops 53 pc

Post the acquisition of the UK-based Azure, the company re-aligned some of its accounting policies, following which the net profit for the quarter registered a wide variance. The company claims that without the changes in policies, the net profit would have been Rs 11.8 crore, up from Rs 8.5 crore in the corresponding quarter last year.

Revenues recorded a marginal rise of 5 per cent from Rs 41.2 crore in the corresponding quarter last year. Revenues from the products business declined by 21 per cent, accounting for 48 per cent of the overall revenues.

Other income for the quarter saw an exponential rise to Rs 4.9 crore from 0.4 crore in corresponding quarter last year, due to interest income and foreign exchange gains.

Integration on schedule

The company also announced it would consolidate with Azure in the quarter ending September 30. Subex acquired Azure in a stock-plus-cash deal exceeding $140 million. Azure provides data integrity, wholesale and interconnect billing, international settlements and fraud management solutions.

"The integration is progressing on schedule and as per our plans. Since the closing of the acquisition on June 23, the combined entity has won orders totalling $6.5 million. This proves that the industry has accepted this acquisition, with the telcos placing orders on us, viewing us as long term partners for their revenue maximisation efforts," said Mr Subash Menon, Founder-Chairman, Managing Director and CEO, Subex Azure.

The company expected this change in accounting policies and so the guidance for the current financial year would remain unchanged, he added. The company had guided for a product revenue of Rs 240 crore and net of. Rs 65 crore.

The company added 200 people from the acquisition and the headcount is now at 550.

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