News
Suntech plans international expansion and debut on public market 08-05-2008
Suntech S.A., a dynamically developing software provider for telecommunication operators, is planning in the second quarter this year an issue of shares and debut on Warsaw Stock Exchange (NewConnect market). The company has ambitious plans and the key-element of its development strategy is international expansion.
The company is a leading provider of BSS/OSS solutions (Business/Operations Support Systems) for the telecom market. Among customers of the company are GSM operators, providers of triple play services (the Internet, telephone, television) and mobile virtual network operators (MVNO). The company has a strongly established position on the Polish market - even 9 out of 18 key telecommunication operators and cable TVs use Suntech systems.
Plans concerning NewConnect
The Board of Directors, in view of the dynamics of the market development, came to the decision about the company going public. The Private Share Offer is being prepared and will be led by an Authorized Adviser - Capital One Advisers Ltd. In May it is planned to present the offer of the private share to a selected group of investors (private placement). Suntech is due to make its debut on NewConnect (market financing the growth of companies with a large growth potential, organized and operated by the Warsaw Stock Exchange)by the end of June this year. The first formal step to enable the company to go public has already been done - in April this year the court registered the transformation of Suntech into a joint stock company.
Issue targets and development strategy
The target of the corporate issue is to gain the capital for the further development of the company, including aggressive entry of the company into foreign markets. Suntech is planning to establish the division of export sales and representations outside Poland. Additionally, the development strategy will result in further development of the product range and consolidation of the company on the domestic market (increase in sales of its own systems and foreign partners’ products). Plans are very ambitious - the realization of the settled strategy for 2008-2011 is the first step towards making Suntech a Central European leader in the production of information technology systems for telecommunication carriers and cable TVs offering triple/quad play services.
Profile of Suntech customers
Suntech software is created by a team of highly qualified specialists in cooperation with leading national research centres and international organizations responsible for standardization of solutions. A confirmation of the dynamic development of the company is the current financial performance and implementations with a considerable number of telecommunication operators. Suntech implemented its own systems among leaders of the Polish market of telecommunication (among others Orange, Plus GSM), as well as among biggest operators of triple play cable-networks (Aster, Vectra). Additionally, the company realized projects for: Sferia, Netia, and Railway-Telecommunication.
Financial performance
In 2007 Suntech S.A. income reached the level of PLN 8,4 million and increased with relation to the year 2006 by about 49,5 %. Net profits in 2007 reached PLN 1,2 million, and in 2006 PLN 0,12 million. The sale of products for the telecommunication market in 2007 accounted for over 81% of all income of the company.
Market environment
The product offer of Suntech responds to the needs of the market. According to analysts, it is expected that the total market of providers of information technology solutions for telecommunication operators will increase from USD 42 billion in 2007 to USD 63 billion in 2012, so by over 8% a year. Trends observed on the telecommunication market which force operators to seek innovative software solutions are first of all progressive liberalization of the market, stiffer competition, development of new services and technologies, convergence of stationary, mobile and cable services, and the fall of income per user. In view of the changing situation, new chances and challenges appear, and directions of their development should take into account new needs of operators. Providers of software solutions which will be able to come to these expectations will be the main beneficiaries of the forecast growth of this market.
Range of Suntech offer
Products offered by Suntech aim to improve business activities of telecoms and can be divided into three main categories: Billing & CRM, Network Inventory, Business Process Management. Billing and CRM systems enable telecommunication operators to offer a complex customer service and help with settlements between operators. Network Inventory is the system of inventory of telecommunication network resources, management of its configuration and planning of the network extension. Business Process Management is a solution supporting adaptation of telecommunication firms to new organizational needs and the optimization of their business processes.
History
The company was established in 1995 and from the very beginning concentrated on the creation of innovative information technology systems. In the initial phase of development the Board of Directors put a lot of stress on information technology solutions directed to the banking sector. Suntech was a pioneer in the field of systems helping banks and other financial institutions to provide services using the Internet and telephone. So far Suntech has made over 70 implementations in this sector. A few years ago the company noticed the great potential of the telecommunication market in Poland. It made considerable investments in the development of specialist systems of information technology dedicated to GSM operators, triple play services (the Internet, telephone, television) and mobile virtual network operators (MVNO). Suntech has also achieved a huge success on this market.
Employment and shareholders structure
Suntech employs over 70 people, the majority of whom are highly qualified specialists in the field of creation and implementation of information technology systems. The Board of Directors of Suntech consists of four people who are at the same time founders of the company and possess 25% of shares each.
Contact
Mariusz Skowronek
Tauber Promotion Agency
Tel. 022 833 23 88
Mobile: +48 698 612 866
