Light Reading
Canadian BSS specialist raises C$17.55M from investors – but for what?

Is That a Redknee War Chest?

Ray Le Maistre
9/28/2012
50%
50%

We're not talking big amounts of money here, but keep an eye on any fiscal action coming from the offices of Canadian Service Provider Information Technology (SPIT) vendor Redknee Inc. (Toronto/London AIM: RKN) in the coming months: This company has some serious momentum in the increasingly key area of converged billing and a smart and determined CEO, and is about to add to its cash pile, possible for some M&A action.

Redknee announced today that it is raising C$17.55 million (US$17.84 million) from the sale of 13 million shares to a group of underwriters. Not an earth-shattering amount, but that's nearly as much cash as Redknee has in the bank (about $20 million) and more than it generates in quarterly revenues: In the second quarter this year, Redknee generates sales of US$14.8 million and a net profit of US$1.7 million.

Redknee says the money is for "working capital and general corporate purposes and potential acquisitions." Keep an eye on the latter: CEO Lucas Skoczkowski has a keen eye for targeted acquisitions and passed comment to Light Reading during Mobile World Congress earlier this year about his desire to see sector consolidation. If he had the funds, Skoczkowski would be the type of character to try and cherry pick useful assets from the BSS business NSN is looking to offload. (See Is NSN Close to BSS Sale? and M&A Interest in NSN's BSS Assets Builds.)

This would be a good time for Skoczkowski to add more meat to Redknee's bones. The company has momentum: It ended the second quarter with an order backlog of $55.8 million (more than 30 percent better than a year earlier), improved its gross margins to 71 percent from 61 percent a year earlier.

Those improving results follow a lot of development work on its converged billing platform (pre- and post-paid billing, plus a host of charging and customer care features): The software runs on Microsoft Corp. (Nasdaq: MSFT) servers -- most billing systems rely on Oracle Corp. (Nasdaq: ORCL) -- and is available as a hosted service, which makes it more flexible and particularly appropriate for deployment in MVNO (mobile virtual network operator) scenarios. (See Redknee Gets Cloudy With Windows Azure.)

In fact, Redknee recently announced a multimillion-dollar deal with an unnamed Tier 1 North American operator, which is using the hosted (or cloud-based, if you must) platform to host partner services and MVNOs. Separately, the company this week announced a hosted converged billing and customer care deal with Step Up Mobile, which will launch as an MVNO on Sprint Corp. (NYSE: S)'s network. (See Sprint Builds an MVNO Factory.)

Redknee is a relatively small but focused, driven company that is almost compelling enough to be a bigger player in a market dominated by the likes of Amdocs Ltd. (NYSE: DOX), Comverse Inc. (Nasdaq: CNSI), Oracle, CSG Systems International Inc. (Nasdaq: CSGS) and NetCracker Technology Corp. (now that it has Convergys on board). Don't bet against Skoczkowski striking some deals to further its cause.

— Ray Le Maistre, International Managing Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Google: Carriers & Cloud Providers Need to Cooperate
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
iPad Air 2 Lets Users Switch Carriers Any Time
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/17/2014
CBS Takes OTT Plunge
Mari Silbey, Independent Technology Editor, 10/16/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Like Us on Facebook
Twitter Feed