Redknee Solutions (TSX:RKN, Stock Forum) disappointed investors today when the company announced its Q3 2014 financial results.
According to the news release, the provider of real-time monetization and subscriber software, upped revenue by 9% to $63.9 million from $58.6 million reported in the matching 2013 quarter, however gross profit was down to $27.9 million from $32.0 million filed in the same 2013 period.
The company recorded a net loss for the quarter of $6.9 million compared to a net profit of $0.1 million filed in Q3 2013 with accounts receivable sitting at $85.7 million at the end of the quarter.
Redknee Unified 10, the company's flagship integrated suite for charging, billing policy management and customer care solution for communications and connected industries, was made available during the quarter.
There were multiple multi-million dollar customer orders announced throughout the quarter as well as the signing of a multi-million dollar software, services and support agreement with a Tier-1 service provider in APAC to support the growth and profitability of their 4G/LTE strategy.
Company CEO, Lucas Skoczkowski, commented on the results, “During the third quarter of fiscal 2014, we continued to execute on Redknee's growth plan achieving record order backlog to date and growing our revenues faster than our market. On a fiscal year to date basis, we are in-line with our plan for both revenues and order growth expansion.”
He went on to illustrate, “We are continuing to increase support value, upgrade software to our existing customers and upsell our full portfolio to over 200 telecom service providers. We are focused on continuing to drive our share of higher margin revenues and, with the integration of the Nokia Networks BSS acquisition complete, we have initiated the next phase of our plan to optimize our operating structure and strategically reduce our cost base.”
Then he concluded, “Redknee is now well positioned to fully leverage our global platform and looking forward we see a clear path toward expanding Adjusted EBITDA into our target range over the next four quarters. We remain committed to bringing the highest level of service to our customers and see a great opportunity ahead in both our core communication business, as well as non-telecom monetization to serve the evolving Internet of Things market.”
Redknee was in the news recently when the Toronto-based company announced its support contract with a Tier-1 Operator at the end of June.
Shares were down 15.38% on the news to $3.96 per share.
Currently there are 108.9m outstanding shares with a market cap of $431.2 million.