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For Digital Service providers, Tecnotree is the only full stack digital BSS service provider with over 40 years of deep domain knowledge, proven delivery and transformation capability across the globe. Our open source technology based agile products and solutions comprises the full range (order-to-cash) of business management solutions for Core telecom and Digital Service providers.
CEO Padma Ravichander: Consistent and encouraging Corporate Performance in Q1 2019
Since the stabilization of the company seen in the second half of 2018, the Q1 2019 results indicate a strong trend towards a consistent and motivating corporate performance of Tecnotree. We have many positive indications about the stability and growth of the company demonstrated in the financial results for this quarter.
The revenue of the first quarter stood at EUR 9.5 million, being higher by 26% on Q1 of 2018. This is a clear indication of the company’s performance in the market. During the report period, the company received orders worth EUR 11.3 million, which is 31% more than the same quarter last year and one among our best quarterly performances for Q1 orders.
We believe that cost optimization is not a one-time exercise but needs constant monitoring and dynamic realignment without affecting delivery capability to our customers. Due to persistent and prudent focus on costs, the first quarter experienced a 14% reduction in costs, from EUR 9.0 million to EUR 7.8 million.
After considering operating costs, the company earned adjusted profit of nearly EUR 1 million against a loss of EUR 2.4 million in Q1 2018. This further confirms that the strategy and operations of our company are in the right direction. During the quarter, we sold the premises in Espoo, Finland and realized EUR 2.4 million, which has been paid back as per the debt restructuring scheme. On this transaction, the company earned a profit of EUR 1.4 million, which helped to improve the profitability further. Another major cost impacting the profitability of the company are withholding taxes. The company is constantly exploring options to optimize the taxes and hope to achieve desired results in this year.
Other business updates
Tecnotree has during the report period launched the next generation Digital BSS Suite 5 for the global market. The Digital BSS Suite 5 comprises of a complete set of products, which will revolutionize the way subscribers can manage their own subscriptions and pay from a single digital wallet. Digital BSS Suite 5 also comes with inherent capabilities to reduce operational expenses with complete open source technology based cloud-native products, operation’s management with zero downtime and self-healing capabilities, faster time-to-market for new features with micro services and containerized continuous deliveries, as well as world-leading Omni-channel Omni-device customer experience management. This is a tremendous achievement and I trust that it will be a big game changer.
The company was awarded a contract from Telefonica Peru to replace their current service delivery platform. With this contract, Tecnotree continues expanding its market share in Latin America.
We also completed the full rollout of multi-play enabled digital BSS platform for Mauritius Telecom, facilitating the deployment of fixed, IPTV and broadband services for subscribers with superior customer experience. This further demonstrated the company’s ability to develop and implement innovative technology, to the benefit of our customers.
During the report period, the District Court of Länsi-Uusimaa passed judgment rejecting the petition of Viking Acquisitions Corp. for the payment of a supplementary share under the restructuring programme of the company. According to Viking’s petition, the company would have had to pay a supplementary share of 1.95 million euro to its creditors, part of which would have been payable to Viking.
Fitzroy Investments Ltd and Luminos Sun completed their investments in the company as per the subscription-based agreement signed by them with Tecnotree in September 2018. As a result of the warrant exercise by Fitzroy and Luminos, Tecnotree has received in the aggregate EUR 5 million. This further demonstrates the confidence reposed by the investors in the company.
Tecnotree is now in a strong position to grow its business across global markets, taking advantage of the onset of 5G implementations and the digital transformation requirements of our customers. We hope to synergize new partnerships to increase our competitive edge, our new market reach and to strengthen our customer base globally by having additional resources to implement our full range of digital products and services.
PROSPECTS IN 2019
The company strengthened and stabilised its operations in 2018 and in 2019 the company continues with the efforts to improve its net sales while focusing on profitable growth.
The Board of Directors
FURTHER INFORMATION, investors and media: Padma Ravichander,CEO,Tel. +97 156 414 1420 Priyesh Ranjan, CFO, tel +971 50 955 1188 /br> www.tecnotree.com