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:
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.”
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.