Subex Q1 net falls 53% on accounting change
Telecoms software company Subex Azure Ltd. said it posted a 53 percent fall in net profit for the June quarter due to a change in accounting policy after acquiring U.K.-based Azure Solutions in April.
By PTI |
MUMBAI: Telecoms software company Subex Azure Ltd. said it posted a 53 percent fall in net profit for the June quarter due to a change in accounting policy after acquiring U.K.-based Azure Solutions in April. "We are realigning our accounting policies worldwide and that is why our profits have taken a hit. We will be back on track again in the third and fourth quarters," Chairman and Managing Director Subash Menon told Reuters after the results on Thursday.
"For the full year, we are on track to meet our guidance, given earlier," he said.
In April the company said it expected a net profit of 650 million rupees for the year ending March 2007 on product revenues of 2.4 billion rupees.
For the June quarter, Subex reported a net profit of 40.28 million rupees on total sales of 434.47 million rupees, which rose marginally from a year ago.
The figures are standalone as the consolidation will commence only in the current quarter.
Following the acquisition, Subex received orders worth $6.5 million and was expecting further orders worth $160 million, Menon said.
"This is an indication of the integration working well," he said. "The positioning and stature we have gained with the acquisition will get us larger and better deals."
In the next two years Subex expects the deal sizes to increase by 30 to 40 percent from current levels, Menon added.
Subex shares were down 4.5 percent to 382 rupees in a firm Mumbai market.
"For the full year, we are on track to meet our guidance, given earlier," he said.
In April the company said it expected a net profit of 650 million rupees for the year ending March 2007 on product revenues of 2.4 billion rupees.
For the June quarter, Subex reported a net profit of 40.28 million rupees on total sales of 434.47 million rupees, which rose marginally from a year ago.
The figures are standalone as the consolidation will commence only in the current quarter.
Following the acquisition, Subex received orders worth $6.5 million and was expecting further orders worth $160 million, Menon said.
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"This is an indication of the integration working well," he said. "The positioning and stature we have gained with the acquisition will get us larger and better deals."
In the next two years Subex expects the deal sizes to increase by 30 to 40 percent from current levels, Menon added.
Subex shares were down 4.5 percent to 382 rupees in a firm Mumbai market.
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