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Editor’s note: We’re a little late with this, but in the context of recent developments at OnMobile, we thought that it’s important to give readers an overview of what was discussed on the company’s earnings conference call, early in August.

OnMobile Global had posted a net loss of Rs 12.1 crore for the quarter ended June 30, 2014, as compared to a profit of Rs 14.1 crore in the same quarter last year. Its India revenues also declined 28.1% year-on-year (YoY) to Rs 46.3 crore, after an encouraging 22.8% YoY increase in revenues in the previous quarter. Notes from OnMobile Global’s earnings conference call at the end of Q1-FY15:

Strategic Direction

OnMobile’s managing director and CEO Rajiv Pancholy, on his first conference call, outlined areas of focus for the company:

– Focus on Europe: “First and foremost, we will seek growth in key markets where our performance has slowed in the recent past due to our inability to meet market expectations. Europe will be one of these territories where we will accelerate our engagements and expect to see healthy double-digit growth over the next one year”. Note that the company has sold off its France based mobile data operations, Voxmobili to Synchronoss.
– Cost reduction: “Secondly, we will be obsessed with our cost base and exercise tight management of all controllable cost. In concert with other initiatives, this is expected to bring OnMobile to historical levels of EBITDA performance by the end of this fiscal year.” This explains the Layoffs at Onmobile.
– Evolve and Renew product portfolio: This is an excellent, much needed and important move, and the company made it clear that this doesn’t mean that it will look at acquisitions. Its past acquisitions haven’t exactly worked out. Pancholy declined to disclose plans, saying only that “Details of this will be shared only when we are ready to unveil these to our customers.” He did say, later on the call, that “I can tell you that new products are being conceived, prototyped, built and tested and the process is going on fairly strongly. ”
– Board-level changes: Commenting on the several board-level changes, Pancholy said that it’s part of the natural rotation policy of board members and directors, and in line with the regulatory requirements that stipulate the length of time any Board member can serve on the board of a public company. It’s worth noting that in his opening statement during the conference call, Pancholy had announced the appointment of Nancy Cruickshank and Bruno Ducharme as Independent Directors of the Company. Since the call, HH (Tony) Haight resigned as OnMobile Global chairman and board director last month, and was replaced by Francois Charles Sirois. Sirois is the President and CEO of Onmobile Systems Inc, which is the promoter company of Onmobile Global and its largest shareholder, as well as the President and CEO of Telesystem Ltd. Barry White had also resigned as OnMobile Global director with effect from August 14, 2014.

Pancholy assured investors that by the end of the financial year, the company would have a very stable business plan “for the next following years”, and “we will give you very, very accurate guidance.”

What will fuel India growth?

In response to a shareholder query regarding how OnMobile intends to bring in India revenues, OnMobile Global’s Chief Commercial Officer Sanjay Bhambri said that the Indian market is experiencing a huge consolidation, and that OnMobile is on the right side of this consolidation, which will help it grow. He also said that OnMobile will refresh its product line in a bid to make it more relevant to the current market, and expects this to have a major impact on the company’s performance not just in India, but globally. India revenues have stabilized and there is revenue growth.

Importantly, Pancholy said that “We are not seeing ourselves by the prism of the Indian market. We are a global Company and we look at all markets globally. And if, in fact, you look at the trend, the growth on our global revenue outside of India is increasing as a proportion. I am not saying that India is not an important market.”

OnMobile Live (Livewire)

Bhambri said that the issues that Livewire (now OnMobile Live or OLI) was facing on the migration front have been sorted, and that it has reached a steady revenue pattern. He also mentioned that the company is working towards improving the profitability of OLI over the next two quarters. In Q1-FY15 OLI reported a net loss of Rs 11.8 crore for the quarter, an improvement from Rs 15.01 crore losses in the previous quarter. OnMobile had acquired caller ringback tone services provider Livewire Mobile in June 2013 for $17.8 million.

MTN Rwanda and looking forward

OnMobile’s RBT services for MTN went live in Rwanda during Q1-FY15. Bhanbri reiterated that the company is looking to go live in three other countries within the next two months, as part of Hit 1.

OnMobile had inked a 22-country deal to power ringback tones for South African telecom major MTN, in July 2013. At the time, the company had claimed that will start deploying RBT services for MTN subscribers over the next quarter and will replace the entire service over the next 24-30 months in all 22 countries.

Cash from Voxmobili sale

” We realised about 26 million dollars and there was an escrow. So the net money that we got in was $24 million. And if you’ve been tracking this transaction, we also have to pay an IP settlement of $6 million, out of which $3 million was paid in March, the other $3 million has been paid post the transaction. So it is essentially $24 million minus the expenses and minus the $3 million outflow. $20 million is what you can see as an addition to the Cash balance when we declare our results in the next quarter. ”

The company hadn’t decided what it wants to do with the cash (at the time of the call)

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