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Redknee Announces New Strategic Plan for Long-Term Growth and Sustained Profitability

TORONTO, Feb. 23, 2017 /CNW/ - Redknee Solutions Inc. ("Redknee" or the "Company") (TSX: RKN) announced that the Board of Directors (the "Board") approved a new strategic plan for the Company intended to create a strong platform for long-term growth, simplified operations, and sustained profitability. (All figures in U.S. dollars.)

Under the leadership of newly appointed interim CEO Danielle Royston, the Company intends to create two major operating units:

  • "Strategic Global Accounts" will focus on communication service providers (CSP's) for whom the Company provides significant, mission critical software and services solutions; and, 
  • "Packaged and Cloud Solutions" will focus on pre-integrated telecom software solutions, delivered on premise and from the cloud.
The company intends to wind down non-telecom operations outside the scope of these two operating units.

"Our immediate priority for the business is to deliver consistent customer and financial success," said Ms. Royston, "I am confident this new strategic plan will provide our customers with greater focus, talent, and innovation, all while enabling us to optimize profitability."

The strategic plan includes a corporate restructuring the scale of which is based on a go-forward revenue base of $120 million, a level at which there is realistic mid-term visibility once the impact of completing service engagements and known future customer churn are factored. Note Redknee does not provide revenue guidance and this revenue base should not be construed as such.

The Company estimates the restructuring will require $60 million in capital that is expected to be financed through an equity raise in the form of a public issue or rights offering. The restructuring is expected to be completed in 2018.

The Company also announced its intention to eliminating reporting on Non-IFRS measures. The reporting focus moving forward will be on net income and free cash flow. Additionally, management will review the Company's other financial and operational policies to align with the new goals of simplification and focus.

"In my over 20 years of experience in enterprise software, I have seen few technology solutions as robust, complete, and admired by its customers as Redknee's solutions for communication service providers offerings," said Ms. Royston. "Redknee customers deserve a partner that can couple great technology with deep customer focus, world-class talent, and responsible financial management. We intend to deliver this for them, and leverage the resulting success as our basis for long-term growth."

Media Enquiries: media@redknee.com

About Redknee:
Redknee monetizes today's digital world for communications service providers. Our market-leading portfolio of monetization and subscriber management solutions includes real-time billing, charging, policy and customer care modules and is available on premise, cloud-based, or as Software-as-a-Service. With a central focus on driving customer success, Redknee's products power growth and innovation for operators globally. Established in 1999, Redknee Solutions Inc. (TSX: RKN) can be found on the Toronto Stock Exchange. For more information about Redknee, please go to www.redknee.com.


For additional information please contact:

Redknee Solutions:

Kristin Donelson
Kristin.Donelson@redknee.com
+1 905 625 2190

Investor Relations:
Katelynn Thissen
NATIONAL | Equicom
T: (416) 848-1427
kthissen@national.ca