The year 2006 signifies a pivotal year for Redknee, a company that has experienced a tremendous year in terms of continued growth and evolution. The three key themes that capture our progress throughout 2006 are Redknee’s continued market leadership, organizational excellence and accelerating strategic growth. These themes describe where Redknee is at today, and will continue to define our path through 2007.

Market Leadership
Since inception, Redknee has deployed its core solution in over 40 operating companies that today can process 2.4 billion transactions per month across data, messaging, voice, m-commerce and profile queries. Our most widely deployed solutions to date have been Redknee’s advanced IP Charging & Policy and Turnkey Real-time Converged Billing solution. These innovative solutions have taken our customers to an exciting new level of personalization and profitability. I believe that in coming years both of these solutions will achieve a new level of leadership position in the wireless market.
 
Furthermore, Redknee’s continued market and technology leadership was exemplified by our breakthrough solution, Unified Profile Server (UPS). Designed to manage subscriber profile, privacy and location information, UPS is a critical component in advanced networks around the world. We have been contracted to deploy this advanced solution to over 100 million subscribers across North America and Europe. This success is just the tip of the iceberg, as our other global customers are still in process of deciding on how to best implement their next generation service infrastructure, in both the pre and post IMS world. Redknee’s UPS is well positioned to help our customers maximize their subscribers’ experience and value.

Organizational Excellence
In 2006, Redknee achieved an important milestone by attaining the ISO 9001 certification for our quality processes across the organization. Many of our customers today depend on our software products for 20-100% of their revenues – making our commitment to timely, quality, robust and scalable products paramount. We have had an exceptional year in quality and performance improvement, which has been reflected in our improved customer satisfaction feedback. For 2007, we expect to exceed the expectations of our customers through our on-going quality initiatives and continued innovation of our solutions.

Our success in quality can be attributed to Redknee’s greatest asset, our employees. 2006 brought increased focus to create a progressive environment that would foster not only innovation, but quality products and services. This achievement was recognized for the 5th year, as Redknee was again named one of 50 Best Managed Companies in Canada. We remain committed to attracting, developing and retaining the best talent globally. Redknee has put in place formal training programs across the organization, and is striving to exceed 40 hours of training per employee per year, while investing over $1 million yearly in training and employee development. We are reminded by our customers of the importance of this investment, as they continue to benefit from the commitment, passion and ingenuity of our employees.

Strategic Growth
Redknee has accomplished over 26% year over year top-line growth and has demonstrated continued strong financial performance. I am also excited to announce that we finished our fiscal year with a record backlog, positioning us for continued sustainable growth in the coming quarters.
 
Redknee is set to continue its strong organic growth in our three core areas: 

• Monetization – real-time advanced data rating, charging and policy
• Personalization - unified profile service for subscriber profile, privacy and location information federation and transactability
• Turnkey Converged Billing solutions for emerging markets that combines both monetization and personalization with full CRM and customer care system in a single real-time platform

The year 2006 marks a significant milestone for Redknee and I am excited to enter into 2007 with a company that has a clear path, a solid team and its greatest days ahead of it. The upcoming year will be driven by continued growth opportunities, through both organic and in-organic means, innovative solutions and exceptional quality.

Thank you in advance for your feedback. We are committed to success of everyone associated with us!

Lucas Skoczkowski
CEO, Redknee Inc.