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.”
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that TJ1400, the company’s latest ultra-converged broadband access/edge product family, has been shortlisted for the prestigious Leading Lights Award 2019 in the category “Most Innovative Telecoms Product (Optical/IP/Carrier Ethernet/FTTH)”. Leading Lights is an international award program organized annually by Light Reading (an Informa business) that honours a company that has developed a potentially market-leading Optical/IP/Ethernet product.
The TJ1400 ultra-converged broadband access/edge products were commercially launched at the Mobile World Congress (MWC), Barcelona earlier this year. Based on a novel software-defined hardware™ architecture powered by the company’s rich portfolio of 270+ FPGA IPs, TJ1400 implements multiple access technologies such as fixed wireless (LTE eNodeB upgradable to 5G), fiber broadband (GPON/NG-PON) and Ethernet, on one product. TJ1400 achieves an unprecedented level of access and transport convergence in a compact form factor by integrating diverse packet transport technologies (MPLS-TP, OTN, IP, CE2.0) in the same modular shelf.
Dr. Kumar Sivarajan, Chief Technology Officer of Tejas Networks said, “The selection of Tejas as a finalist for the Leading Lights award is a powerful endorsement of our ability to build sophisticated, industry-leading products. TJ1400 is the world’s first broadband access/edge product family that gives service providers the flexibility to quickly rollout broadband services on any media viz., wireless (WTTx), passive optical fiber (FTTx), or active Ethernet, based on their preferences and available infrastructure, using the same platform.”
TJ1400 is a cutting-edge broadband product family that incorporates the latest advances in optical as well as wireless innovation and is based on Tejas carrier-grade and field-proven software and hardware technologies. TJ1400 has been selected in several broadband access networks including Government of India’s BharatNet project, which is one of the world’s largest green-field rural broadband rollouts extending high-speed Internet services to over 200 million people.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are delighted to be shortlisted for one of telecom industry’s most respected innovation awards. TJ1400 significantly lowers the cost of telecom network build-outs and delivers residential broadband, enterprise services and mobile backhaul services from the same shelf.”
The winners will be announced at the Leading Lights Awards dinner and ceremony on Monday, May 6, at the Pinnacle Club, Grand Hyatt Denver, USA.
The TJ1400 ultra-converged broadband access/edge products were commercially launched at the Mobile World Congress (MWC), Barcelona earlier this year. Based on a novel software-defined hardware™ architecture powered by the company’s rich portfolio of 270+ FPGA IPs, TJ1400 implements multiple access technologies such as fixed wireless (LTE eNodeB upgradable to 5G), fiber broadband (GPON/NG-PON) and Ethernet, on one product. TJ1400 achieves an unprecedented level of access and transport convergence in a compact form factor by integrating diverse packet transport technologies (MPLS-TP, OTN, IP, CE2.0) in the same modular shelf.
Dr. Kumar Sivarajan, Chief Technology Officer of Tejas Networks said, “The selection of Tejas as a finalist for the Leading Lights award is a powerful endorsement of our ability to build sophisticated, industry-leading products. TJ1400 is the world’s first broadband access/edge product family that gives service providers the flexibility to quickly rollout broadband services on any media viz., wireless (WTTx), passive optical fiber (FTTx), or active Ethernet, based on their preferences and available infrastructure, using the same platform.”
TJ1400 is a cutting-edge broadband product family that incorporates the latest advances in optical as well as wireless innovation and is based on Tejas carrier-grade and field-proven software and hardware technologies. TJ1400 has been selected in several broadband access networks including Government of India’s BharatNet project, which is one of the world’s largest green-field rural broadband rollouts extending high-speed Internet services to over 200 million people.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are delighted to be shortlisted for one of telecom industry’s most respected innovation awards. TJ1400 significantly lowers the cost of telecom network build-outs and delivers residential broadband, enterprise services and mobile backhaul services from the same shelf.”
The winners will be announced at the Leading Lights Awards dinner and ceremony on Monday, May 6, at the Pinnacle Club, Grand Hyatt Denver, USA.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the fourth quarter and year ended March 31, 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 year ended Mar 31, 2019, our revenues (net of taxes and pass-through component sale) were ₹ 876.7 crore, which was a year-on-year increase of 18.5%. Our operating profit was ₹ 130.3 crore, year-on-year increase of 42.3%. Our profit before tax grew by 41.5% to ₹ 150 crore and profit after tax grew by 38.2% on year-on-year basis.
For the quarter ended Mar 31, 2019, our consolidated revenues (net of taxes and pass-through component sale) was ₹ 265.8 crore, QoQ increase of 50.9%. Our operating profit was ₹ 35.3 crore and our profit before tax was ₹ 37.1 crore, QoQ growth of 48.9%
Mr. Sanjay Nayak, Managing Director and CEO said, “We had a strong revenue growth on year-on-year basis, while continuing to expand our profitability. Our international sales investments are yielding positive results and we saw a 70% year-on-year increase in our international-direct revenues. Our non-Government revenues grew by 33%, indicating a reduced dependency on India-Government business, which is inherently lumpy in nature. We believe that the growth drivers of our business continue to be strong, although we will see quarterly volatility. Our focus is to invest and grow our international business which we expect to be around 50% of our total revenues in the medium term. We are pleased to inform that our Board has recommended a maiden dividend (final) of ₹ 1/- per share to our shareholders.”
Mr. Venkatesh Gadiyar, CFO said, “On year-on-year basis, we have improved our operating profit by over 240 bps on account of higher gross margins and operating leverage. During the year, our DSO increased by 101 days, primarily due to delays in payment from a Public Sector operator in India. We believe there is no collection risk since the dues pertain to Government’s BharatNet project, for which specific funds have been set aside from the Universal Services Obligations (USO) fund. During Q4 we have partially collected the amount and expect to collect the overdue amount and normalize our working capital cycle in the near future. We are practically a debt free Company and as of March 31, 2019 our cash and cash equivalents (including investment in mutual funds) were about ₹ 369.7 crore.”
During the quarter, we were granted 6 patents bringing our cumulative grant to 106 patents. As on date, we have filed for 349 patents.
For the year ended Mar 31, 2019, our revenues (net of taxes and pass-through component sale) were ₹ 876.7 crore, which was a year-on-year increase of 18.5%. Our operating profit was ₹ 130.3 crore, year-on-year increase of 42.3%. Our profit before tax grew by 41.5% to ₹ 150 crore and profit after tax grew by 38.2% on year-on-year basis.
For the quarter ended Mar 31, 2019, our consolidated revenues (net of taxes and pass-through component sale) was ₹ 265.8 crore, QoQ increase of 50.9%. Our operating profit was ₹ 35.3 crore and our profit before tax was ₹ 37.1 crore, QoQ growth of 48.9%
Mr. Sanjay Nayak, Managing Director and CEO said, “We had a strong revenue growth on year-on-year basis, while continuing to expand our profitability. Our international sales investments are yielding positive results and we saw a 70% year-on-year increase in our international-direct revenues. Our non-Government revenues grew by 33%, indicating a reduced dependency on India-Government business, which is inherently lumpy in nature. We believe that the growth drivers of our business continue to be strong, although we will see quarterly volatility. Our focus is to invest and grow our international business which we expect to be around 50% of our total revenues in the medium term. We are pleased to inform that our Board has recommended a maiden dividend (final) of ₹ 1/- per share to our shareholders.”
Mr. Venkatesh Gadiyar, CFO said, “On year-on-year basis, we have improved our operating profit by over 240 bps on account of higher gross margins and operating leverage. During the year, our DSO increased by 101 days, primarily due to delays in payment from a Public Sector operator in India. We believe there is no collection risk since the dues pertain to Government’s BharatNet project, for which specific funds have been set aside from the Universal Services Obligations (USO) fund. During Q4 we have partially collected the amount and expect to collect the overdue amount and normalize our working capital cycle in the near future. We are practically a debt free Company and as of March 31, 2019 our cash and cash equivalents (including investment in mutual funds) were about ₹ 369.7 crore.”
During the quarter, we were granted 6 patents bringing our cumulative grant to 106 patents. As on date, we have filed for 349 patents.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced it has appointed Mr. C.B Bhave as an Independent Director and Mr. Arnob Roy as an Executive. Director who will assume the role of Chief Operating Officer (COO), with effect from March 25, 2019, based on the recommendations of the Nominations and Remunerations Committee. With these additions, the Board now has three Independent Directors out of a total of six Directors.
Mr. C.B Bhave served as the Chairman of Securities and Exchange Board of India (SEBI), India’s capital market regulator, from 2008 to 2011, prior to which he was the Chairman and Managing Director of National Securities Depositories Limited (NSDL) from its inception in 1996 till 2008. Mr. Bhave, a 1975 batch Indian Administrative Services (IAS) officer, worked with the Central and State Governments in various capacities and roles and has won several awards from the Government of Maharashtra for his outstanding work in the area of family welfare and excellence in administration.
On his appointment, Mr. Bhave said, “While India has seen many successes in ICT services sector there is a need as well as an opportunity for us to build deep-technology, global product companies from India. Tejas Networks has built world-class telecom and data networking products and they have all the ingredients to become a strong global player. It is my pleasure to be a part of Tejas Networks Board and I look forward to contributing to the team’s vision”.
Mr. Arnob Roy, who has been with the company since inception and served as President Optical Products, has now been designated as the Chief Operating Officer of the company. Mr. Roy has over 30 years of high-technology industry experience in research & development, operations and sales. He holds a Master of Science Degree from the University of Nebraska, Lincoln (USA) and a Bachelor of Technology from the Indian Institute of Technology, Kharagpur.
Mr. V. Balakrishnan, Chairman of the Board of Directors of Tejas Networks said, “I am delighted to welcome Mr. C.B Bhave to our Board. We will immensely benefit from his intellect, insights and rich experience in business and corporate governance. I am also delighted to welcome Mr. Arnob Roy to our Board. Arnob has made significant contributions to the company since inception and we look forward to leveraging his operational experience and track record in steering Tejas forward. I believe that with these additions to the Board, Tejas is well positioned to become a strong global telecom and networking products company”.
Mr. C.B Bhave served as the Chairman of Securities and Exchange Board of India (SEBI), India’s capital market regulator, from 2008 to 2011, prior to which he was the Chairman and Managing Director of National Securities Depositories Limited (NSDL) from its inception in 1996 till 2008. Mr. Bhave, a 1975 batch Indian Administrative Services (IAS) officer, worked with the Central and State Governments in various capacities and roles and has won several awards from the Government of Maharashtra for his outstanding work in the area of family welfare and excellence in administration.
On his appointment, Mr. Bhave said, “While India has seen many successes in ICT services sector there is a need as well as an opportunity for us to build deep-technology, global product companies from India. Tejas Networks has built world-class telecom and data networking products and they have all the ingredients to become a strong global player. It is my pleasure to be a part of Tejas Networks Board and I look forward to contributing to the team’s vision”.
Mr. Arnob Roy, who has been with the company since inception and served as President Optical Products, has now been designated as the Chief Operating Officer of the company. Mr. Roy has over 30 years of high-technology industry experience in research & development, operations and sales. He holds a Master of Science Degree from the University of Nebraska, Lincoln (USA) and a Bachelor of Technology from the Indian Institute of Technology, Kharagpur.
Mr. V. Balakrishnan, Chairman of the Board of Directors of Tejas Networks said, “I am delighted to welcome Mr. C.B Bhave to our Board. We will immensely benefit from his intellect, insights and rich experience in business and corporate governance. I am also delighted to welcome Mr. Arnob Roy to our Board. Arnob has made significant contributions to the company since inception and we look forward to leveraging his operational experience and track record in steering Tejas forward. I believe that with these additions to the Board, Tejas is well positioned to become a strong global telecom and networking products company”.
