2013 ANNUAL REPORT

MESSAGE FROM THE CEO

Redknee has witnessed a year of significant growth and new revenue opportunities that were achieved through both the disciplined acquisition, and through continued organic growth. This has enabled us to become the largest, independent provider of real-time converged billing and charging solutions for communications service providers.

Lucas Skoczkowski Chief Executive Officer


Fiscal 2013 resulted in an increase in recurring revenue, constituting 55% of total revenue compared to 50% in the year prior. Order backlog increased by 130% to $160 million from $70 million at the end of the previous year, supporting the development of our long-term growth strategy. According to analyst firm Gartner, the annual spend of telecom software sector is expected to grow in 2014, and with our expanded scale and integrated solution portfolio, we feel we are well positioned to capture an increasing share of this spend.

Redknee’s key objectives this year have been the disciplined integration of our latest acquisition, ensuring both employee and customer retention by continuing to offer a great value proposition. We have been working as one organization since April 1st 2013, and I am very proud of how our team has come together. Our employees are now more engaged and passionate about their work than ever before and together we are demonstrating our commitment to our customers by providing an innovative quality solution that will help them profitably grow their business. Because of this we have retained all of our customers since the acquisition was closed and are honored to now be supporting more than 200 customers with over 2 billion subscribers across over 90 countries.

In 2013, we completed a number of notable achievements across three main areas of our business:

Existing Customers and Solutions
New Customers and Solutions
Strategic Partnerships and Acquisitions

Throughout this year, our long-term growth strategy has remained consistent:

1. Continued evolution of our business-critical software offerings.

In summary, we have made excellent progress executing on our short term priorities and integration efforts, and across our long term growth strategies. We are encouraged by the momentum we’ve established in 2013 and we expect to complete our business acquisition integration in 2014 and accelerate our growth as we move into 2015.

I invite you to attend our Annual General Meeting of Shareholders, which will be held on March 6, 2014 at The TMX Broadcast Centre, The Exchange Tower, 130 King Street West, Toronto, Ontario commencing at 10am.

On behalf of our Board and the entire management team, I would like to thank our employees, partners, customers, investors and shareholders, along with the financial community, for their support in 2013. We look forward to sharing another exciting year ahead.

Yours Sincerely,

Lucas Skoczkowski
Chief Executive Officer

Learn More About Redknee’s Vision >

Increased recurring revenues to 55% of total revenue.

Executed on the acquisition of the NSN BSS business unit, increasing Redknee’s market share by
more than 135
customers
and adding
long-standing relationships with Tier-1 operators.