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."
About Redknee
Redknee monetizes today's digital world. We provide a complete
portfolio of mission-critical monetization and subscriber
management solutions and services that allow communications service
providers to charge for things in new and innovative ways.
Redknee's real-time billing, charging, policy and customer care
offerings provide the agility and scalability to drive a unique
user experience, increase profitability and support any new product
or business model. Available on premise, cloud-based, or as a
Software-as-a-Service, Redknee's low-risk, flexible solutions power
more than 250 communication service providers across the globe.
Established in 1999, Redknee Solutions Inc. (TSX: RKN) is the
parent of the wholly-owned operating subsidiary Redknee Inc. and
its various subsidiaries.
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.
SOURCE Redknee Solutions Inc.