Redknee Solutions Reports Preliminary Financial Results for Q2 2016 and Announces Award of $15 Million Contract with Tier 1 Asia Pacific Operator
– Management to Host Conference Call Today,
For Q2 2016, the Company expects to report:
- Revenue of $39.0 million to
- Adjusted EBITDA loss of
$1.5 to $3.0 million;
- Order backlog increased for the second consecutive quarter to
$175.0 million to $177.0 million(compared with $157.2 millionfor Q2 2015);
- Positive cash flow from operating activities of
$1.0 million to $2.0 million,
"We are disappointed by the preliminary second quarter results, which came in below our internal expectations as delays in customer purchasing decisions continue to impact our software license revenue in the short term," said Lucas Skoczkowski, CEO of Redknee. "We continue to be encouraged by the growth of our order backlog, which has reached record levels. Contributing to this growth in backlog is our
The Company is progressing with its previously announced cost structure optimization, which commenced as planned following the integration of the acquisition of Orga Systems in July of last year. The Company has eliminated duplicate functions and closed certain offices, with the majority of these having been acquired in our NSN BSS acquisition. We expect these steps to generate annualized savings of
The lenders under the Company's credit facility have amended the facility's financial covenants such that the anticipated financial results for Q2 2016 will not breach the covenants, and have reduced the availability under its revolving line of credit to
Redknee expects to report its full Q2 2016 financial results on
Redknee has been awarded a contract valued at
"This strategic win demonstrates how Redknee's flexible and scalable solution can enhance competitiveness and foster innovation among leading CSPs in some of the most competitive markets in the world," said Mr. Skoczkowski. "We look forward to working with this major service provider to transform its business."
The company will host a conference call to discuss this announcement.
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
If you have any difficulty connecting with the conference call, please contact NATIONAL | Equicom at 1 (416) 586-1955.
A replay of the call will be available until 12:00 midnight (ET)
Media Enquiries: firstname.lastname@example.org
References to Redknee refer to the combined operations of those entities. For more information about Redknee and its solutions, please go to www.redknee.com.
For additional information please contact:
+1 905 625 2190
NATIONAL | Equicom
T: (416) 848-1427