Comptel’s Q1/2014 Results and Review

At the end of the last year, Comptel stated that our main objectives remain largely the same as for the year 2013: we will continue to invest in the new businesses (Comptel Fulfillment, Comptel Analytics and Comptel Policy and Charging Control), drive the expansion to new countries and substantially increase our collaboration with partners.

Our order backlog increased from the last quarter and we won three new customers during the first quarter of 2014. We received a new Comptel Analytics deal with a leading Asian operator, Globe Telecom, a Comptel Fulfillment deal in Colombia and a Comptel Convergent Mediation deal in New Zealand.

During the quarter, we signed a strategic partnership with Tech Mahindra and also won our first joint project after the partnership agreement.

Our year-over-year net sales declined to 18.0 million (21.2 million) due to seasonality swings between quarters. We divested one of our legacy businesses that also contributed slightly negatively to our order intake and revenue.

Our profitability improved compared to the first quarter of the last year and our cost base is now lower due to earlier implemented cost saving measures. We maintained a strong cash flow (7.2 million) throughout the quarter and currently our cash exceeds our bank debt.

Comptel, Tech Mahindra and New Strategic Partnership for 2014

By Peter Middleton, Vice President, Global Alliances, Comptel

The secret is out – the role of fulfillment is becoming increasingly important to operational and business transformation for communications service providers (CSPs). The trouble is, the scope of these projects is simultaneously broadening to include complex, multi-strand service delivery processes, high-volume and high-speed fibre deployments, cloud-based IT and virtualised networks.

I am pleased to share that to help CSPs tackle this, Comptel and Tech Mahindra have signed a non-exclusive strategic partner agreement. Together, we’ll deliver integrated, 360-degree service fulfillment solutions, and continue to develop innovative offerings that can quickly support our customers’ needs and accelerate their future business growth.

As communicated on the Helsinki Stock Exchange on 18^th February by our CEO Juhani Hintikka, the partnership means that Comptel will be able to serve our customers with a wider sales channel, increased productivity and the scalability to deliver large and complex OSS/BSS transformation projects. In addition, Tech Mahindra are establishing a Comptel centre of expertise and training centre, which will secure and grow knowledge across their organisation.

Over the past 18 months, we’ve invested heavily in our next-generation fulfillment platform—to ensure that CSPs deliver a high customer experience and have seen strong business performance rooted within operational excellence. This partnership was the next logical step for us to broaden the product’s reach, whilst internally we start to pair it with our additional areas of expertise, such as predictive analytics.

Tech Mahindra was an obvious choice, with its OSS/BSS industry experience and focus on fast enablement and time-to-delivery. We are pleased to extend our work with the company and believe our partnership will allow us to meet and exceed the challenges facing CSPs today in the increasingly complex telecommunications market.