Redknee reduces Q4 net loss as it pushes forward with restructuring plan

Thursday 7 December 2017 | 11:49 CET | News

Redknee Solutions, a provider of monetisation and subscriber management software, reduced losses and expenses in its fourth quarter to end September, despite reporting lower revenues. CEO Danielle Royston said the company has gone “full speed ahead” on its strategic plan using the proceeds from its rights offering, and that it has made a number of restructuring initiatives. The CEO expects revenues to shrink further next year and into 2019 until restructuring is fully completed. Savings from the plan will be channeled into customer sucess efforts and ongoing product revitalization.

For Q4, the net loss narrowed to USD 10.4 million or a loss per share of USD 0.07, from a loss the year earlier of 14.7 million or 0.14, while operating expenses decreased to USD 10.4 million from 34.4 million. Revenues meanwhile fell to USD 33.8 million from 40.7 million. For the full year, the net loss also narrowed, to USD 58.8 million from a loss of 66.9 million, on revenues down to USD 137.9 million from 171.1 million. Operating expenses declined to USD 116.0 million from 145.9 million.

In the year, the company completed a rights offering worth CAD 96.5 million and launched a restructuring plan to reduce employees, closed down and streamlined facilities worldwide and made organisational changes for an estimated total cost of US 48-50 million. In addition, it appointed Robert Stabile to its board of directors. Stabile is the CFO of Beanfield Technologies, a fibre optic internet service provider based in Toronto

The company also announced a collaboration between Redknee and Google Cloud engineering teams to integrate Cloud Spanner innovation into Redknee products, and began offering high-performance Google Cloud Spanner to customers.  

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

::: add a comment