iBasis Reports Record Revenue, Margin and Traffic Volume for Second Quarter 2004.BURLINGTON Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. , Mass. -- Company Achieves Goal of Positive Cash Flow; Continues Rapid Growth in Retail Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. Business; Completes Debt
Refinancing RefinancingAn extension and/or increase in amount of existing debt. iBasis, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : IBAS), a leader in international long distance, VoIP, and prepaid calling cards, today announced results for the second quarter ended June June: see month. 30, 2004. Revenue for the second quarter of 2004 was $61.2 million, compared to $39.1 million for the second quarter of 2003. Net loss for the second quarter of 2004 was $5.9 million, or $(0.13) per share, compared to net loss for the second quarter of 2003 of $5.5 million, or $(0.12) per share. Excluding debt refinancing charges and gains on debt exchanges, net loss for the second quarter of 2004 was $3.5 million, or $(0.08) per share, compared to net loss for the second quarter of 2003 of $9.2 million, or $(0.21) per share. Highlights of the second quarter include: --Completed refinancing of $62.5 million in debt; --Increased cash and achieved positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses ; --Achieved fourth consecutive quarter of revenue growth; --Increased revenue 56% over Q2 2003 revenue and 7% over Q1 2004; and --Increased Prepaid and Enhanced Services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; (PES pes (pes) pl. pe´des [L.] 1. foot. 2. any footlike part. pes n. pl. pe·des 1. The foot. 2. ) revenue 100% over Q1 2004. "We achieved two of our three all-important all-im·por·tant adj. Of the greatest importance; crucial. all  -im·por goals: positive
cash flow by mid- mid-pref. Middle: midbrain. 2004, and debt refinancing. We expect to achieve the third goal, profitability, by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . "The debt refinancing is the culmination of a three-year effort to strengthen our balance sheet, during which we have reduced our debt by almost $147 million through bond exchanges and repurchases," said Ofer Ofer (Hebrew: עופר) is a moshav located south of Haifa, Israel in the Carmel Mountains and is a part of the Hof HaCarmel Regional Council. Gneezy, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of iBasis. "We extended the maturity dates significantly and created the very real potential to convert all of our debt to equity, which would eliminate the debt and interest payments entirely." "Once again, we achieved tremendous sequential growth in the PES business, more than doubling the Q1 revenue. We continue to have a substantial competitive advantage as a result of our international network and our superior quality of service. By leveraging The iBasis Network(TM) and our sophisticated back office systems, the PES business is driving a transformation towards a balance between PES and our wholesale business in margin contribution. ($ in millions) Wholesale VoIP PES Total ------------------------------------------------------------------- Revenue $53.5 $7.7 $61.2 ------------------------------------------------------------------- Gross Margin(a) $7.7 $1.4 $9.1 ------------------------------------------------------------------- Gross Margin % 14.5% 17.8% 14.9% (a) Net Revenue less Data Communications and Telecommunications costs. Key Indicators Minutes of use on The iBasis Network(TM) in the second quarter 2004 rose to 1.1 billion minutes, a 30% increase over the 854 million minutes carried in the second quarter 2003, and an 8% increase over the 1 billion minutes in the first quarter 2004. Average revenue per minute continued to be relatively stable at 5.5 cents per minute in the second quarter 2004, down from 5.6 cents per minutes in the first quarter 2004. Average revenue per minute is based on our reported net revenue divided by the minutes of traffic for the applicable period. Operational Milestones In the second quarter 2004, Tier One carrier customers generated approximately 44% of iBasis Wholesale VoIP revenue, compared to 52% of Wholesale VoIP revenue in Q1 2004. Five of the top ten iBasis customers during the quarter were Tier One carriers. Overseas-originated calls accounted for 42% of revenue in the second quarter of 2004, compared to 45% of revenue in the first quarter 2004. iBasis ended the second quarter with 277 customers, up from 263 at the end of the first quarter. New customers announced during the quarter included Golden Telecom, a leading alternative provider of integrated telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the services in major cities of Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). and other countries of the Commonwealth of Independent States Commonwealth of Independent States (CIS), community of independent nations established by a treaty signed at Minsk, Belarus, on Dec. 8, 1991, by the heads of state of Russia, Belarus, and Ukraine. Between Dec. 8 and Dec. (CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S ), and Telekom Malaysia Telekom Malaysia Berhad (TM) is the largest telecommunication company in Malaysia and also Southeast Asia's second-largest telecommunication company. It has a monopoly on the fixed line network and has a considerable market share of the mobile communications market after its , the national carrier of Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. . Both of these customers benefited from the iBasis DirectVoIP(TM) service, which enables cost-efficient Adj. 1. cost-efficient - productive relative to the cost cost-effective efficient - being effective without wasting time or effort or expense; "an efficient production manager"; "efficient engines save gas" direct VoIP interconnections with The iBasis Network for the exchange of international phone calls using VoIP equipment from a large selection of vendors. Also, during the quarter iBasis announced that for the third year in a row it has been ranked by carriers as the world's best international wholesale carrier in the 2004 International Wholesale Report Card, the industry reference survey published annually by independent telecommunications research and advisory firm ATLANTIC-ACM. Debt Refinancing In June, iBasis completed a refinancing of $62.5 million in debt. As a result of an exchange offer, $37.3 million of the Company's 5 3/4% Convertible Subordinated Notes due in March 2005, representing approximately 98% of the total amount outstanding, were tendered for the same principal amount of new 6 3/4% Convertible Subordinated Notes due in June 2009. The new notes are convertible into the Company's Common Stock at $1.85 per share. Approximately $0.9 million of the original notes was not tendered for exchange and remains outstanding. Simultaneous with the exchange offer, the Company prepaid all $25.2 million of its 11 1/2% Senior Secured Notes due in January January: see month. 2005 for cash equal to the principal amount plus accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. but unpaid interest and warrants exercisable for 5,176,065 shares of the Company's Common Stock at $1.85 per share. The Company issued $29.0 million of new 8% Secured Convertible Notes due in June 2007, of which $25.2 million was used to finance the prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of the 11 1/2% Senior Secured Notes. The new notes are convertible into shares of the Company's Common Stock at $1.85 per share. As a result of a debt exchange in 2003, all of the interest on the $25.2 million of 11 1/2% Senior Secured Notes due in January 2005 was accounted for as a reduction of the gain on the debt exchange and not charged to the statement of operations See Income statement. as interest expense over the term of the debt. The interest on the $29.0 million of new 8% Secured Convertible Notes due in June 2007 will be recorded as a charge to the statement of operations. Although the refinancing resulted in a reduction in the Company's annual cash interest payments, it will result in an increase in interest expense on the statement of operations in the future. Guidance The following statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and actual results may differ materially due to factors noted below, among others. The information provided in this financial outlook is as of July July: see month. 21, 2004, and supersedes all previous guidance. The Company believes it will continue to be cash flow positive for the balance of 2004, it will achieve positive cash flow for the year, and, partially as a result of the increased interest expense resulting from the debt refinancing, it will now achieve positive net income in Q4 2004. About iBasis Founded in 1996, iBasis (OTCBB: IBAS) is a leading wholesale carrier of international long distance telephone calls and a provider of retail international prepaid calling cards sold through major distributors. iBasis customers include many of the largest telecommunications carriers in the world, including ATT ATT ammonia tolerance test. , Cable & Wireless, China Mobile, China Unicom China Unicom, full name China United Telecommunications Corporation, 中国联通, HKSE: 0762 NYSE: CHU, is a telecommunication operator in the People's Republic of China. 52. , MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. , Sprint, Telefonica, Telenor Telenor (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia. , and Telstra. The Company's prepaid calling cards are sold through retail stores in major metropolitan markets throughout the U.S. iBasis has carried more than nine billion minutes of international voice over IP (VoIP) traffic over its global Cisco Powered Network(TM), and is one of the ten largest carriers of international voice traffic in the world(1). For three consecutive years service providers have named the Company as the best international wholesale carrier in ATLANTIC-ACM's annual International Wholesale Carrier Report Card(2). iBasis was also ranked the #1 fastest-growing technology company in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. in the 2002 and 2003 Technology Fast 50 programs sponsored by Deloitte & Touche. The Company can be reached at its worldwide headquarters in Burlington, Massachusetts Burlington is a town in Middlesex County, Massachusetts, United States. The population was 22,876 at the 2000 census. History Burlington was first settled in 1641 and was officially incorporated on February 28, 1799. , USA at 781-505-7500 or on the Internet at www.ibasis.com. Assured Quality Routing, ConnectPoint, and iBasis are registered marks, DirectVoIP, The iBasis Network, Internet Central Office, Internet Branch Office, and IP CallCard are trademarks of iBasis, Inc. Cisco and Cisco Powered Network are registered trademarks of Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , Inc. All other trademarks are the property of their respective owners. Except for historical information, all of the expectations, projections and assumptions contained in the foregoing press release, including those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's current expectations regarding revenue growth, sources of revenue, margin improvement, profitability, future capital expenditures, and cash flows constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and involve risks and uncertainties. Important factors that could cause actual results to differ materially from such forward-looking statements include, but are not limited to, (i) the extent of adoption of the company's services and the timing and amount of revenue and margin generated by these services; (ii) fluctuations in the market for and pricing of these services; and (iii) the other considerations described as "Risk Factors" in the Company's most recent Forms 10-K and 10-Q, and the company's other SEC filings. We have no current intention to update any forward-looking statements. Use of Non-GAAP Financial Data The Company provides certain financial data in addition to providing financial results in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . This data is not in accordance with, or an alternative to GAAP, and may be different from Non-GAAP financial data used by other companies. This Non-GAAP financial data includes average revenue per minute, which the Company believes provides useful information, to both its management and investors, about the Company's current performance. (1)Telegeography 2004 data compared with iBasis annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. Q1 2004 traffic volume. (2)ATLANTIC-ACM International Wholesale Carrier Report Card - 2002, 2003, & 2004.
iBasis, Inc.
Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2004 2003
---------- ------------
(Unaudited)
Assets
Cash and cash equivalents $18,217 $17,270
Accounts receivable, net 25,692 21,767
Prepaid expenses and other current assets 2,875 5,295
Property and equipment, net 11,817 17,175
Deferred debt financing costs, net 191 326
Long term investment in non-marketable
security --- 5,000
Other assets 358 705
------------ ----------
Total assets $59,150 $67,538
============ ==========
Liabilities and Stockholders' Deficit
Accounts payable $24,510 $19,902
Accrued expenses 13,875 18,652
Deferred revenue 3,421 417
Current portion of long term debt 4,023 2,097
Long term debt, net of current portion 66,285 65,829
Other long term liabilities 1,200 2,749
------------ ----------
Total liabilities 113,314 109,646
Stockholders' deficit:
Common stock 48 46
Treasury stock, at cost (341) (341)
Additional paid-in capital 373,590 370,393
Accumulated deficit (427,461) (412,206)
------------ ----------
Total stockholders' deficit (54,164) (42,108)
------------ ----------
Total liabilities and stockholders'
deficit $59,150 $67,538
============ ==========
iBasis, Inc.
Consolidated Statements of Operations
(In thousands)
Three Months Ended
June 30,
----------------------
2004 2003
------------ ---------
(Unaudited)
Net revenue $ 61,175 $ 39,119
Cost and operating expenses:
Data communications and
telecommunications (excluding
depreciation and amortization) 52,066 33,370
Research and development 3,542 3,442
Selling and marketing 2,131 1,903
General and administrative 3,266 2,820
Depreciation and amortization 2,787 5,749
Non-cash stock-based compensation --- 28
------------ ---------
Total costs and operating expenses 63,792 47,312
------------ ---------
Loss from operations (2,617) (8,193)
Interest expense, net (795) (930)
Gain on bond repurchases and exchanges --- 3,716
Other expenses, net (66) (98)
Loss on long-term non-marketable
security --- ---
Debt refinancing charges:
Transaction costs (1,954) ---
Additional interest expense, net (481) ---
------------ ---------
Net loss $(5,913) $(5,505)
======================
Basic and diluted net loss per share:
Basic $(0.13) $(0.12)
============ ========
Diluted $(0.13) $(0.12)
============ ========
Weighted average common shares outstanding:
Basic 46,287 44,652
============ =========
Diluted 46,287 44,652
============ =========
iBasis, Inc.
Consolidated Statements of Operations
(In thousands)
Six Months Ended
June 30,
--------------------
2004 2003
---------- ---------
(Unaudited)
Net revenue $ 118,183 $ 80,960
Cost and operating expenses:
Data communications and telecommunications
(excluding depreciation and amortization) 100,656 68,297
Research and development 7,080 7,125
Selling and marketing 4,132 3,896
General and administrative 6,219 5,329
Depreciation and amortization 6,311 11,862
Non-cash stock-based compensation --- 57
---------- ---------
Total costs and operating expenses 124,398 96,566
---------- ---------
Loss from operations (6,215) (15,606)
Interest expense, net (1,520) (2,287)
Gain on bond repurchases and exchanges --- 16,615
Other expenses, net (85) (195)
Loss on long-term non-marketable security (5,000) ---
Debt refinancing charges:
Transaction costs (1,954) ---
Additional interest expense, net (481) ---
---------- ---------
Net loss $(15,255) $(1,473)
====================
Basic and diluted net loss per share:
Basic $ (0.33) $ (0.03)
========== ========
Diluted $ (0.33) $ (0.03)
========== ========
Weighted average common shares outstanding:
Basic 45,674 44,651
========== =========
Diluted 45,674 44,651
========== =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion