Subex Systems edged up today as the market welcomed the company's turnaround results.

By 10:35 IST, the scrip of the telecom software company rose 2.75% to Rs 132.50. A total of 39,422 Subex Systems shares were traded on BSE thus far. The stock of Subex Systems has risen 45.6% from Rs 91 on 17 April 2004.

For Q4 ended 31 March 2003, the company recorded a net profit of Rs 2.8 crore compared to a net loss of Rs 29.7 lakh in the corresponding period of the previous year.

Net sales have risen by 28.3% to Rs 19.63 crore (Rs 15.30 crore). For FY 2002-03, the company posted a massive 130% rise in net profit to Rs 9.61 crore (Rs 4.18 crore) on a 19.3% increase in total income to Rs 70.64 crore (Rs 59.20 crore). The company's board also announced a 10% dividend for FY 2002-03.

Looking ahead, the company expects profitability to rise from 14% to 22%.

Last month, Subex Systems signed a contract with Bharti Cellular to deploy its flagship Fraud Management System (FMS) Ranger. Ranger aids wireless and wireline telecom carriers to curb fraud through the use of innovative subscriber profiling techniques and advanced analytical capabilities.

According to the company, Ranger has been designed in such a way that it accepts different sources for efficient fraud detection and is also capable of addressing fraud in emerging areas like GRPS & 3G Technologies.

This win followed another key contract in May 2003, from Connex, the Romanian GSM operator, to implement Ranger.

Subex's Ranger suite is one of the most successful Indian solution going on at the international level. Among its major wins this year include the order from Total Access Communication (TAC), Thailand and Sri Lankan GSM operator, MTN Networks.

It also won a contract for the GSM network of Ikatel in the sub-Saharan nation of Mali as well as a contract for the wireline network of the No. 1 Senegalese carrier, Sonatel. Sonatel is a subsidiary of French giant France Telecom.

Ranger FMS is an end-to-end fraud management system for wireless and wireline networks that has been designed specifically to address fraud in roaming, pre-paid and post-paid environments. The company claims that Ranger FMS is one of the market leaders in this area.

Subex Systems, founded in 1992, has been providing software solutions for the telecom industry. It is a leading player in the market for revenue maximisation solutions for the telecom domain. Its portfolio includes both software services and software products.

Telecom fraud is a significant problem the world over as the total fraud losses per annum is in excess of US$ 14 billion. This is expected to grow to US$ 30 billion by 2003 with the implementation of new technologies such as GPRS and UMTS, which offer tremendous opportunities for fraudsters.

Subex had acquired IVth Generation, Inc., US in January 2000 and has converted the same into a wholly-owned subsidiary. The subsidiary, renamed Subex Technologies Inc, operates out of New Jersey, US. Subex acquired the product range of Canada-based Magardi, Inc. in May 2001 and the acquired products have been integrated into the existing product line of Subex. The products and services of Subex are marketed globally, with a particular focus on the US and certain developing countries.

Subex focuses in the revenue maximisation arena within the telecom domain with its RevMaxÖ suite of products. Subex pioneered the concept of fraud management in the country, through the development and marketing of RangerÖ. RangerÖ assists operators detect fraud in the network at an early stage thus limiting the revenue loss that may be suffered by the operator due to fraud and non-payment.

As on 31 March 2003, promoters held 54.72% stake in Subex, while the public and institutions held 24.59% and 8.60%, respectively.