Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that it has stepped forward to support Government of Karnataka’s ongoing relief efforts to tackle and contain the damage being caused by the novel Coronavirus outbreak. The company donated Rs 11 Lacs to the Karnataka Chief Minister’s Relief Fund (CMRF) and Rs 40 Lacs to support Akshaya Patra Foundation Bangalore, that runs the world’s largest mid-day meal programme and is now providing food and ration as a part of our country’s COVID-19 relief efforts.
Sanjay Nayak, CEO & Managing Director of Tejas Networks said, “Our country is grappling with the biggest humanitarian crisis of our times. We appreciate and support the outstanding work being done by our Government and other agencies in tackling this unprecedented situation. As a responsible organization, we are making our humble contribution for these disaster relief efforts.
Tejas Networks has supplied telecom equipment to all the major communication service providers, mission-critical government and defence networks. At this critical juncture, when the need for digital connectivity is critical, we are ensuring that we provide timely support to our customers so that businesses, government offices, hospitals, homes and other essential services stay connected”.
Sanjay Nayak, CEO & Managing Director of Tejas Networks said, “Our country is grappling with the biggest humanitarian crisis of our times. We appreciate and support the outstanding work being done by our Government and other agencies in tackling this unprecedented situation. As a responsible organization, we are making our humble contribution for these disaster relief efforts.
Tejas Networks has supplied telecom equipment to all the major communication service providers, mission-critical government and defence networks. At this critical juncture, when the need for digital connectivity is critical, we are ensuring that we provide timely support to our customers so that businesses, government offices, hospitals, homes and other essential services stay connected”.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that it has signed a Memorandum of Understanding (MoU) with Bharat Electronics Limited (BSE: 500049, NSE: BEL), India’s premier defence solution provider. The MoU envisages strategic cooperation, covering the use of Tejas’ optical transmission, access and data-switching products for domestic & export markets by jointly capitalising on the emerging opportunities in defence communication, strategic communication, smart city, homeland security, metro and state network projects under the “Make-in-India” program.
Tejas Networks has recently received purchase orders totalling over INR 60 crores from BEL, towards supply and services of its optical and data networking equipment for various projects won by BEL, which includes the Kerala Fibre Optic Network, defence communication networks and smart city projects.
Mrs. Anandi Ramalingam, Director (Marketing) at Bharat Electronics Limited said, “Communication technology is becoming a critical part of defence systems and having an indigenous eco-system is important to address our long-term strategic needs. We are pleased to partner with Tejas Networks, India’s leading R&D-driven telecom products company in the private sector, and combine our complementary strengths to address emerging opportunities in the defence, strategic and civilian sector. BEL has proven capabilities in delivering projects that require complex electronic system design, engineering and production, while Tejas is strong in R&D-led, high-technology product development for optical and data communication. Working together, we expect to create a strong indigenous R&D-driven eco-system, which will reduce our dependence on foreign technology and boost high-value, indigenous electronics manufacturing within the country, in line with the Make in India program.”
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks added, “We are excited to enter into a strategic partnership with BEL, India’s flagship defence electronics company with an outstanding track record of execution and deep understanding of complex defence systems as well as strategic and civilian projects. This partnership will enable us to offer our state-of- the-art optical transmission, access and data-switching products for turnkey projects in India and internationally. It will also diversify our customer base across a wider set of networking applications and domains.”
Tejas Networks has recently received purchase orders totalling over INR 60 crores from BEL, towards supply and services of its optical and data networking equipment for various projects won by BEL, which includes the Kerala Fibre Optic Network, defence communication networks and smart city projects.
Mrs. Anandi Ramalingam, Director (Marketing) at Bharat Electronics Limited said, “Communication technology is becoming a critical part of defence systems and having an indigenous eco-system is important to address our long-term strategic needs. We are pleased to partner with Tejas Networks, India’s leading R&D-driven telecom products company in the private sector, and combine our complementary strengths to address emerging opportunities in the defence, strategic and civilian sector. BEL has proven capabilities in delivering projects that require complex electronic system design, engineering and production, while Tejas is strong in R&D-led, high-technology product development for optical and data communication. Working together, we expect to create a strong indigenous R&D-driven eco-system, which will reduce our dependence on foreign technology and boost high-value, indigenous electronics manufacturing within the country, in line with the Make in India program.”
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks added, “We are excited to enter into a strategic partnership with BEL, India’s flagship defence electronics company with an outstanding track record of execution and deep understanding of complex defence systems as well as strategic and civilian projects. This partnership will enable us to offer our state-of- the-art optical transmission, access and data-switching products for turnkey projects in India and internationally. It will also diversify our customer base across a wider set of networking applications and domains.”
Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the second quarter ended September 30, 2019. Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build high-speed communication networks over optical fiber.
Highlights for the quarter:
• India-Private segment grew 67% for H1 on YOY basis
• Added 5 new international customers in Q2, and closed techno-commercials on 6 new deals
• DSO (excluding BSNL) decreased by 24 days as compared to Q1
• Cash and cash equivalents increased by ₹ 59 Cr to ₹ 290 Cr as of September 30, 2019
For Q2, 2019, consolidated revenues (net of pass-through component sale) were ₹ 85.1 crore which was a year-on-year decline of 58.0%. The weak revenue during the quarter was primarily due to lower revenues from India Government segment, which had a year-on-year decline of 88% for H1 ended September 30, 2019, on account of BSNL and Bharatnet. On the other hand, India-Private segment was robust and grew by 67% year-on-year for the first six months. Decline in revenues resulted in a loss after tax of ₹ 4.4 crore for the quarter ended September 30, 2019, since a majority of costs such as R&D, are linked to manpower and are fixed in nature.
For the half year ended September 30, 2019, revenues (net of pass-through component sale) were ₹ 241.7 crore, which was a year-on-year decline of 44.4%. As a result, for H1 2019, profit after tax was ₹ 1.5 crore, a decline of 98.1% on year-on-year basis.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “As we anticipated, there was a decline in India Government business which is lumpy in nature, and resulted in weak Q2 revenues. Our medium term goal is to increase our international revenue contribution to at least 50% of our total and we are on track to achieve it. Despite delay in collection from BSNL, our cash position continues to be strong, which will help us to invest and achieve our medium term goals. We see strong momentum in our international business, and during the quarter we added 5 new international customers. We also closed techno-commercial discussions for 6 new international customer deals, each of which are expected to result in multi-million orders during H2 of this year.”
Mr. Venkatesh Gadiyar, CFO said, “During Q2, our cash position improved by ₹ 59 crore and our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, stood at ₹ 290 crore. During the quarter, our overall DSO marginally improved to 277 days and excluding BSNL, our DSO improved by 24 days to 173 days, as compared to June 30, 2019. We also started to receive some amount of long-overdue payments from BSNL during the quarter. We are practically debt-free and we have a strong balance sheet to support our growth plans.”
As on date, the company has filed for 349 patents and during the quarter was granted 2 patents, bringing the cumulative grant to 109 patents. Tejas Networks recently launched a new product, TJ1600S/I, which is the world’s largest disaggregated multi-terabit packet-optical switch optimized for 5G, cloud and broadband networks.
Highlights for the quarter:
• India-Private segment grew 67% for H1 on YOY basis
• Added 5 new international customers in Q2, and closed techno-commercials on 6 new deals
• DSO (excluding BSNL) decreased by 24 days as compared to Q1
• Cash and cash equivalents increased by ₹ 59 Cr to ₹ 290 Cr as of September 30, 2019
For Q2, 2019, consolidated revenues (net of pass-through component sale) were ₹ 85.1 crore which was a year-on-year decline of 58.0%. The weak revenue during the quarter was primarily due to lower revenues from India Government segment, which had a year-on-year decline of 88% for H1 ended September 30, 2019, on account of BSNL and Bharatnet. On the other hand, India-Private segment was robust and grew by 67% year-on-year for the first six months. Decline in revenues resulted in a loss after tax of ₹ 4.4 crore for the quarter ended September 30, 2019, since a majority of costs such as R&D, are linked to manpower and are fixed in nature.
For the half year ended September 30, 2019, revenues (net of pass-through component sale) were ₹ 241.7 crore, which was a year-on-year decline of 44.4%. As a result, for H1 2019, profit after tax was ₹ 1.5 crore, a decline of 98.1% on year-on-year basis.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “As we anticipated, there was a decline in India Government business which is lumpy in nature, and resulted in weak Q2 revenues. Our medium term goal is to increase our international revenue contribution to at least 50% of our total and we are on track to achieve it. Despite delay in collection from BSNL, our cash position continues to be strong, which will help us to invest and achieve our medium term goals. We see strong momentum in our international business, and during the quarter we added 5 new international customers. We also closed techno-commercial discussions for 6 new international customer deals, each of which are expected to result in multi-million orders during H2 of this year.”
Mr. Venkatesh Gadiyar, CFO said, “During Q2, our cash position improved by ₹ 59 crore and our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, stood at ₹ 290 crore. During the quarter, our overall DSO marginally improved to 277 days and excluding BSNL, our DSO improved by 24 days to 173 days, as compared to June 30, 2019. We also started to receive some amount of long-overdue payments from BSNL during the quarter. We are practically debt-free and we have a strong balance sheet to support our growth plans.”
As on date, the company has filed for 349 patents and during the quarter was granted 2 patents, bringing the cumulative grant to 109 patents. Tejas Networks recently launched a new product, TJ1600S/I, which is the world’s largest disaggregated multi-terabit packet-optical switch optimized for 5G, cloud and broadband networks.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced the launch of TJ1600S/I, which is the world’s largest disaggregated multi-terabit packet-optical switch optimized for 5G, cloud and broadband networks. TJ1600S/I was unveiled by Shri Ravi Shankar Prasad, Hon’ble Minister for Communications, Electronics & Information Technology and Law & Justice, Government of India in the presence of Shri Anshu Prakash, Chairman DCC and Secretary (T), Department of Telecommunications (DoT) at the India Mobile Congress 2019, New Delhi.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are honoured that Hon’ble Minister Shri Ravi Shankar Prasad, has launched TJ1600S/I, our latest packet and optical switching product, at IMC today. TJ1600S/I is a revolutionary product that has been fully conceptualized, designed and made in India and can be deployed in 5G core networks, for interconnecting hyperscale data centers and to build multi-terabit backbone networks. TJ1600S/I has been developed using an innovative, modular architecture that delivers unprecedented switching capacity in a small footprint, through incremental capex addition in a pay-as-you-grow model.”
TJ1600S/I is the latest addition to Tejas’s TJ1600 series of carrier-class products for optical aggregation, metro and core networks. TJ1600S/I is a future-proof packet and optical switching product that enables service providers to efficiently handle up to 48 terabits of data traffic while optimizing shelf space and power consumption. Built using a programmable software-defined hardware™ approach, TJ1600S/I extends significant time-to-market advantage to customers while incorporating new protocols, technologies, and standards.
Mr. Arnob Roy, COO and President–Optical Products of Tejas Networks said, “TJ1600S/I adopts an innovative disaggregated architecture vis-a-vis the traditional industry approach of building large monolithic systems that are highly inefficient in terms of space and power utilization. TJ1600S/I’s novel architecture enables dynamic and incremental scaling of switching capacity from a few hundred gigabits to tens of terabits by coupling a central TJ1600S fabric shelf with multiple compact TJ1600I interface shelves in a non-blocking fashion. Unlike traditional chassis-based architectures with design constraints, TJ1600S/I’s flexible disaggregated approach will allow the latest advances in optical and semiconductor technologies to be made commercially available to service providers within the shortest period of time.”
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are honoured that Hon’ble Minister Shri Ravi Shankar Prasad, has launched TJ1600S/I, our latest packet and optical switching product, at IMC today. TJ1600S/I is a revolutionary product that has been fully conceptualized, designed and made in India and can be deployed in 5G core networks, for interconnecting hyperscale data centers and to build multi-terabit backbone networks. TJ1600S/I has been developed using an innovative, modular architecture that delivers unprecedented switching capacity in a small footprint, through incremental capex addition in a pay-as-you-grow model.”
TJ1600S/I is the latest addition to Tejas’s TJ1600 series of carrier-class products for optical aggregation, metro and core networks. TJ1600S/I is a future-proof packet and optical switching product that enables service providers to efficiently handle up to 48 terabits of data traffic while optimizing shelf space and power consumption. Built using a programmable software-defined hardware™ approach, TJ1600S/I extends significant time-to-market advantage to customers while incorporating new protocols, technologies, and standards.
Mr. Arnob Roy, COO and President–Optical Products of Tejas Networks said, “TJ1600S/I adopts an innovative disaggregated architecture vis-a-vis the traditional industry approach of building large monolithic systems that are highly inefficient in terms of space and power utilization. TJ1600S/I’s novel architecture enables dynamic and incremental scaling of switching capacity from a few hundred gigabits to tens of terabits by coupling a central TJ1600S fabric shelf with multiple compact TJ1600I interface shelves in a non-blocking fashion. Unlike traditional chassis-based architectures with design constraints, TJ1600S/I’s flexible disaggregated approach will allow the latest advances in optical and semiconductor technologies to be made commercially available to service providers within the shortest period of time.”
Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the first quarter ended June 30, 2019. Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build high- speed communication networks over optical fiber.
For the quarter ended June 30, 2019, our consolidated revenues (net of pass-through component sale) were ₹ 156.6 crore which was a year-on-year decline of 32.5%. The weak revenue during the quarter was primarily due to steep decline in Government business. The Government business was 15% of revenues during the quarter as compared to 55% in Fiscal 2019. The decline is due to deferment of spending on Government projects and we expect to see enhanced Government spending during the second half of the fiscal year.
Our Operating profit was at ₹ 6.6 crore which was 4.2% of our revenues (net) as against 19.5% for Q1 2019. Our profit after tax was ₹ 5.9 crore which was a year-on-year decline of 87%. The decline in profits is primarily due to decline in revenues, coupled with the fact that a majority of our costs such as R&D, are linked to manpower and are fixed in nature. We believe that the margins will normalise on a full year basis, with better business momentum.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “A large portion of our Government business is lumpy with significant fluctuations on a quarterly basis. To de-risk our business, we aim to increase our international revenue contribution to at least 50% of our total revenues in the medium term. We are continuing to make investments in international sales and recently we have hired a strong sales leader in US, which is expected to be a key market for us.” The macro factors driving our business continue to be robust, as increased use of data by consumers, businesses and governments and the rollout of 5G networks is resulting in an increased demand for our optical transmission equipment.
During the quarter, our DSO increased to 284 days and working capital to 283 days primarily due to continued delay in collections from a PSU customer and higher revenue in the last month of the previous quarter.
Mr. Venkatesh Gadiyar, CFO said, “While our receivables days are stretched our cash position is comfortable with cash and cash equivalents (including investment in mutual funds) at ₹ 231 crore as of June 30, 2019. We are virtually a debt-free company. We expect to collect the overdue amounts and normalise our working capital cycle in near future.”
Investment in Research and Development (R&D) continues to be a key focus area for us. Our products have won accolades at national as well as international levels. Tejas’ GPON OLT product won the prestigious “National Technology Award” from Department of Science and Technology, Government of India. Our latest ultra-converged broadband access/edge product family, was the finalist at the “Leading Lights Award 2019” from Light Reading, USA. As on date, we have filed for 349 patents and during the quarter, we were granted 1 patent bringing our cumulative grant to 107 patents.
For the quarter ended June 30, 2019, our consolidated revenues (net of pass-through component sale) were ₹ 156.6 crore which was a year-on-year decline of 32.5%. The weak revenue during the quarter was primarily due to steep decline in Government business. The Government business was 15% of revenues during the quarter as compared to 55% in Fiscal 2019. The decline is due to deferment of spending on Government projects and we expect to see enhanced Government spending during the second half of the fiscal year.
Our Operating profit was at ₹ 6.6 crore which was 4.2% of our revenues (net) as against 19.5% for Q1 2019. Our profit after tax was ₹ 5.9 crore which was a year-on-year decline of 87%. The decline in profits is primarily due to decline in revenues, coupled with the fact that a majority of our costs such as R&D, are linked to manpower and are fixed in nature. We believe that the margins will normalise on a full year basis, with better business momentum.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “A large portion of our Government business is lumpy with significant fluctuations on a quarterly basis. To de-risk our business, we aim to increase our international revenue contribution to at least 50% of our total revenues in the medium term. We are continuing to make investments in international sales and recently we have hired a strong sales leader in US, which is expected to be a key market for us.” The macro factors driving our business continue to be robust, as increased use of data by consumers, businesses and governments and the rollout of 5G networks is resulting in an increased demand for our optical transmission equipment.
During the quarter, our DSO increased to 284 days and working capital to 283 days primarily due to continued delay in collections from a PSU customer and higher revenue in the last month of the previous quarter.
Mr. Venkatesh Gadiyar, CFO said, “While our receivables days are stretched our cash position is comfortable with cash and cash equivalents (including investment in mutual funds) at ₹ 231 crore as of June 30, 2019. We are virtually a debt-free company. We expect to collect the overdue amounts and normalise our working capital cycle in near future.”
Investment in Research and Development (R&D) continues to be a key focus area for us. Our products have won accolades at national as well as international levels. Tejas’ GPON OLT product won the prestigious “National Technology Award” from Department of Science and Technology, Government of India. Our latest ultra-converged broadband access/edge product family, was the finalist at the “Leading Lights Award 2019” from Light Reading, USA. As on date, we have filed for 349 patents and during the quarter, we were granted 1 patent bringing our cumulative grant to 107 patents.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that Paul Harrison has joined as Senior Vice President Sales for North America. Paul is an optical industry veteran with over 35 years of global sales and marketing experience, and till recently was Vice President, Metro Sales America for Infinera Corporation.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are delighted to have Paul join us and lead our North American sales and marketing team. Paul comes with a rich experience, strong credibility and deep relationships with service provider, enterprise and government customers in the US market. Paul has a strong track record of delivering profitable business growth for startups as well as Business units of large multi-national companies. North America is a focus market for us and we see significant growth opportunities for our products. We have decided to make a long-term commitment to the North American market and will continue to increase our investments as we see it contributing to a large portion of our revenues in future. We have acquired several new customers in the US in the recent past, which confirms that our products are an excellent fit for many key applications required by US customers.”
Mr. Paul Harrison said, “I am very excited to join Tejas Networks, a new-generation optical transport and access company, which has been doing exceptionally well globally and is now making strong inroads in the US. Tejas Networks has a very competitive portfolio of converged broadband access and optical transport products built using their innovative software-defined hardware™ technology, that can be field-upgraded with new features in a flexible and pay-as-you-grow manner. US market is seeing an increased amount of optical spending driven by 5G, increased broadband penetration and modernization of critical infrastructure and Tejas Networks has a very innovative product portfolio to address this market demand.”
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are delighted to have Paul join us and lead our North American sales and marketing team. Paul comes with a rich experience, strong credibility and deep relationships with service provider, enterprise and government customers in the US market. Paul has a strong track record of delivering profitable business growth for startups as well as Business units of large multi-national companies. North America is a focus market for us and we see significant growth opportunities for our products. We have decided to make a long-term commitment to the North American market and will continue to increase our investments as we see it contributing to a large portion of our revenues in future. We have acquired several new customers in the US in the recent past, which confirms that our products are an excellent fit for many key applications required by US customers.”
Mr. Paul Harrison said, “I am very excited to join Tejas Networks, a new-generation optical transport and access company, which has been doing exceptionally well globally and is now making strong inroads in the US. Tejas Networks has a very competitive portfolio of converged broadband access and optical transport products built using their innovative software-defined hardware™ technology, that can be field-upgraded with new features in a flexible and pay-as-you-grow manner. US market is seeing an increased amount of optical spending driven by 5G, increased broadband penetration and modernization of critical infrastructure and Tejas Networks has a very innovative product portfolio to address this market demand.”
