Redknee Reports Q4, Full Year

Billing, charging, and policy management specialist reports an increase in revenues and a net profit for its full fiscal year

November 26, 2009

5 Min Read

TORONTO -- Redknee (TSX:RKN - News), a leading provider of business-critical software and services for communications service providers, including end-to-end converged billing, real-time charging, rating and personalization, today announced its results for the fourth quarter and fiscal year ended September 30, 2009.

Highlights

  • Revenue grew to $53.3 million (2008: $50.7 million)

  • Gross margin increases to 78% (2008: 70%)

  • EBITDA profit of $6.5M (2008: loss of $4.2M)

  • Operating income of $4.2M (2008: operating loss of $3.9M)

  • Basic earnings per share of $0.06 (2008: loss per share of $0.08)

  • Cash and investments at $25.8M (September 30, 2008: $15.3M)

  • Recurring revenues increased to 41% of total revenue (2008: 31% of total revenue)

  • Six new customers across the Americas, APAC, and EMEA

  • Successful admission to trading on the Toronto Stock Exchange

  • Multiple industry awards and recognition for Redknee's technology, solutions and organizational achievements

    Lucas Skoczkowski, CEO for Redknee commented:

    "Redknee delivered profitable growth and excellent results in 2009 despite the challenging economic and market conditions. We enter 2010 as a stronger global organization, with a growing customer base and a solid financial position. Our strategy has positioned us well to benefit from the opportunities in both the high growth and Tier-1 markets. The quarter-to-quarter revenue volatility and foreign exchange headwinds will continue to present challenges in the near term. We remain focused on our long-term growth in revenues and earnings, with emphasis on increasing our recurring revenues, while continuing to take market share in the real-time monetization space."

    OVERVIEW

    As we continue to make progress toward our vision of becoming the leadingglobal communications solutions provider of choice, Redknee remains focused onthe three core elements of its corporate strategy:

    1. Continued expansion and evolution of our business-critical solutions to our global customer base;

    2. Market share growth and leadership in our served addressable market;

    and 3. An increasing proportion of sustainable recurring revenues.

    Sales of Redknee's business-critical solutions have continued to grow in the fiscal year 2009, with our Turnkey Converged Billing and Next Generation Rating & Charging solutions contributing more than 90% of revenue.

    Sales of Redknee's business-critical solutions continued to grow in fiscal 2009, with our Turnkey Converged Billing and Next Generation Rating & Charging solutions contributing to more than 90% of revenue. Through the disciplined product roadmap process, Redknee has continued its investment in advancing its competitive advantage and brought to market new releases of its key flagship offerings - Turnkey Converged Billing, InBill and Next Generation Rating Charging & Policy.

    Redknee's market leading solutions continue to be recognized globally by telecom providers. Redknee has continued to take market share in its served addressable market by gaining six new customers across Americas, APAC and EMEA through combination of deliveries to new operators, modular software delivery that integrate with existing systems, as well as replacement of competitors' end-to-end platforms. Furthermore, Redknee's customer care solution, One Call Resolution, was awarded the International Engineering Consortium (IEC) Info Vision Award for providing the best network and services management and operations solution available. Technology Marketing Corporation (TMC) has named Redknee's One Call Resolution a recipient of the 2009 INTERNET TELEPHONY BSS/OSS Excellence Award presented by INTERNET TELEPHONY magazine. The One Call Resolution customer service representatives and tactical network support technicians to resolve complex network problems quickly and efficiently. The solution increases the 'first call resolution' of subscriber complaints and reduces call handling times by giving support representatives an aggregated view of subscriber services. Redknee has found that this solution is especially important to operators who are deploying increasing number of smartphone platforms and services in their markets.

    Redknee continues to have a strong employee base, a growing number of customers, and the right product offering to meet our customers' demands. Market trends further support our approach; mobile data services continue to grow in Tier 1 markets, and wireless subscriber numbers continue to expand in the high growth markets of Africa, the Middle East and Asia Pacific.

    Financial Review

    For fiscal 2009, Redknee's revenue increased by 5 % to $53.3 million compared to revenue of $50.7 million in fiscal 2008. The majority of the Company's revenue is denominated in U.S. dollars and thus revenues may be impacted by exchange rate fluctuations.

    Recurring revenue was enhanced by sales and renewals of customer support services, software subscriptions and term licenses. In fiscal 2009, recurring revenues were at 41 % of total revenues compared to 2008.

    Gross margin in the period increased to $41.3 million or 78% of revenue from $35.7 million or 70% of revenue in fiscal 2008.

    Redknee recorded an EBITDA profit of $6.5 million for fiscal 2009 as compared to a loss of $4.2 million for fiscal 2008.

    For the fiscal year ended September 30, 2009, the Company experienced a foreign exchange loss of $ 0.9 million as compared to a foreign currency exchange gain of $1.6 in fiscal 2008.

    Net income in fiscal 2009 was $3.3 million or $ 0.06 per share, as compared to a loss of $4.4 million or $0.08 per share in fiscal 2008.

    Cash and investments as at September 30, 2009 was $25.8 million versus $15.3 million as at September 30, 2008.

    Redknee Inc. (Toronto TSX: RKN)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like