NEW YORK--(BUSINESS WIRE)--Feb. 10, 2000--deltathree.com, Inc.
(NASDAQ:DDDC.O), a global provider of IP telephony services and other
enhanced, web-based communications services to individuals and
businesses worldwide, today announced results for the fourth quarter
and year ending December 31, 1999. deltathree.com recorded fourth
quarter revenues of $4.6 million, representing a gain of $2.7 million
or a 135 percent increase over the corresponding quarter in 1998.
Total revenues for year ended December 31, 1999 increased to $11.1
million, a rise of $5.4 million or a 96 percent increase from the year
ended December 31, 1998. Excluding non-cash compensation costs of
$10.2 million and $103,000, net loss was $6.1 million or ($0.26) per
fully diluted share compared to a net loss of $2.4 million or ($0.12)
per fully diluted share for the fourth quarter ended December 31st,
1999 and 1998, respectively. Net loss for the quarter was $16.3
million, or ($0.71) per share, compared to a net loss of $2.5 million
or ($0.13) per share in the fourth quarter of 1998. The net loss for
1999 was $33.8 million, or ($1.65) per share, compared with a net loss
of $7.1 million or ($0.37) a share for 1998.
Highlights for the quarter include:
-- Subscriber base increased 42 percent in Q4 to approximately 1.7
million.
-- Telephony minutes increased 81 percent in Q4 to 20.3 million
minutes.
-- Revenues increased 135 percent in Q4 to $4.6 million.
-- DDDC initial public offering raised $96,255,000 in new capital.
-- Global marketing relationship with Yahoo!
The deltathree.com subscriber base grew by approximately 42
percent during the fourth quarter of 1999 as total subscribers jumped
to nearly 1.7 million at year end, up from roughly 1.2 million
subscribers at the end the third quarter of 1999.
Telephony minutes carried over the deltathree.com network during
the fourth quarter rose 81 percent or 9.1 million minutes to total
20.3 million minutes in the fourth quarter, compared with 11.2 million
minutes on the deltathree.com network during the fourth of 1998. In
the sequential third quarter 1999 to fourth quarter 1999 comparison,
total network minutes increased 39 percent or 5.7 million minutes. For
the full year 1999, deltathree.com carried over 61.8 million minutes
of telephony traffic, an increase of 131 percent compared with 26.8
million minutes of telephony traffic carried in 1998.
Eli Wurtman, Chairman and Co-Founder of deltathree.com stated,
"deltathree.com experienced broad based growth during the fourth
quarter of 1999. From our growing list of subscribers, to rising
revenues, to new distribution channels we executed on our strategy of
broadening the market for Internet telephony and web based
communication services. We will continue to actively position
deltathree.com as a premier provider of global IP telephony services
across the ever expanding broadband infrastructure. deltathree.com
leverages the cost efficiencies, convenience and scalability of the
Internet for our subscribers to help them save as much as 90 percent
on traditional international long distance call charges. Proceeds from
our recently completed IPO will enable deltathree.com to provide our
growing base of subscribers expanded worldwide infrastructure, new
distribution channels as well as fuel additional marketing and
technological initiatives. The February 7th acquisition of YourDay.com
reflects our vision of strategically building out our business model
with complementary products and services."
In November of 1999, deltathree.com successfully sold 6,900,000
shares of common stock in the Company's initial public offering at a
price of $15.00 per share through a syndicate of underwriters led by
Lehman Brothers, Merrill Lynch, U.S. Bancorp Piper Jaffray, Lazard
Freres and Fidelity Capital Markets. Excluding IPO expenses,
deltathree.com received net proceeds from the offering of $96,255,000,
including a 900,000 share over-allotment option that was exercised by
Lehman Brothers, lead underwriter for the Company.
With the proceeds of the IPO, deltathree.com is expanding its IP
network and telephony services through strategic acquisitions,
alliances and internal product development. On February 7th,
deltathree.com announced it's first acquisition as a public company
with the purchase of YourDay.com, a subsidiary of SenseNet, Inc.
YourDay.com is a leading online calendar and scheduling system
provider that can access through the Internet, telephones and PDA's.
Subject to customary closing conditions, the deal is expected to close
before February 28th, 2000. deltathree.com expects to integrate the
YourDay.com products and services to allow deltathree.com subscribers
to centralize their communications and scheduling needs.
During the fourth quarter of 1999, deltathree.com launched Click
IT, a voice enabling e-commerce service that allows deltathree.com
e-commerce business customers to offer real-time voice interaction
with their customers over the Internet. Click IT allows Internet
shoppers to "click through" to a live customer service representative
to discuss their purchase while continuing to shop online. The Click
IT product can also be integrated into a wide range of Internet based
communications products and services. Additionally, Click IT enabled
sites serve as a distribution channel for finding and acquiring new IP
telephony customers as they discover the benefits of deltathree.com's
IP telephony technology.
In December of 1999, deltathree.com announced a global marketing
agreement with Yahoo! Inc. (Nasdaq: YHOO.O) to promote deltathree.com's
Internet communication services. The agreement provides for
deltathree.com text links and banner advertisements within the Yahoo!
network of global Internet properties as well as integrating
deltathree.com Internet telephony services into Yahoo! Phone Booth.
With over 105 million Yahoo! users worldwide, the agreement enables
Yahoo! Phone Booth, Yahoo! Yellow Pages and Yahoo! Address Book users
to initiate calls directly over the Internet through the
deltathree.com network with the simple click of a mouse.
deltathree.com worked aggressively towards increasing it's
network capacity during the fourth quarter of 1999, including tripling
it's bandwidth between the US and Europe. The Company has also
increased its peering relationships with leading Internet backbone
providers in the US and Europe. The Company has also extended its
worldwide points of presence to include China, the Netherlands, Spain,
Hungary, Czech Republic and Malaysia.
About deltathree.com
deltathree.com is a global provider of IP telephony services and
other enhanced, web-based communications services to individuals and
businesses worldwide and is a subsidiary of RSL Communications, Ltd.
(NASDAQ: RSLC.O). The Company's interactive communications portal,
www.deltathree.com, is a single on-line source for the communications
needs of users anywhere in the world. By combining user-friendly,
web-based access with the advanced functionality of our
privately-managed, global IP telephony network, we offer our users a
comprehensive solution for high-quality, low-cost IP communications
services. Such services currently include: PC-to-phone; D3 Box, a
unified messaging service; Click IT, an e-commerce tool;
Phone-to-phone; and Global roaming for accessing the deltathree.com
network from locations throughout the world. For more information
about deltathree.com please visit our corporate Website at
deltathree.com.
deltathree.com has included in this press release certain
"forward looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 concerning deltathree.com's
business, operations and financial condition. Such statements include
the Company's plans to increase it capacity and improve the quality of
Internet telephony. In addition, the words or phrases "could",
"expects", "anticipates", "objective", "may affect", "may depend",
"believes", "estimates", "projects" and similar words and phrases are
also intended to identify such forward-looking statements. Actual
results could differ materially from those projected in the Company's
forward-looking statements due to numerous known and unknown risks and
uncertainties, including, among other factors, unanticipated
technological difficulties, the volatile and competitive environment
for Internet telephony, changes in domestic and foreign economic,
market and regulatory conditions, the inherent uncertainty of
financial estimates and projections, and other considerations
described as "Risk Factors" in the Company's filings with the SEC. All
such forward-looking statements are current only as of the date on
which such statements were made. deltathree.com does not undertake any
obligation to publicly update any forward-looking statement to reflect
events or circumstances after the date on which any such statement is
made or to reflect the occurrence of unanticipated events.
-0-
*T
deltathree.com
Condensed Consolidated Statement of Operations
Quarter Ended Year Ended
December 31, December 31,
(unaudited)
1999 1998 1999 1998
Revenues:
Affiliates $ 3,353,696 $ 1,411,565 $ 7,430,974 $ 3,896,106
Non-affiliates 1,266,539 557,617 3,621,615 1,741,941
--------- --------- ---------- ---------
Total revenues: 4,620,235 1,969,182 11,052,589 5,638,047
--------- --------- ---------- ---------
Costs and operating
expenses:
Cost of revenues 4,165,210 1,940,430 9,722,717 4,580,440
Research and
development 487,293 176,191 1,207,625 608,926
Selling and
marketing 4,316,237 828,150 7,403,573 2,431,371
General and
administrative 719,605 781,586 2,732,725 1,761,539
Non-cash
compensation 10,189,553 102,615 19,115,773 742,780
Depreciation and
amortization 1,080,596 855,992 3,767,551 2,671,268
--------- ------- ---------- ---------
Total costs and
operating
expenses: 20,958,464 4,684,964 43,949,964 12,796,324
---------- --------- ---------- ----------
Loss from
operations (16,338,259) (2,715,782) (32,897,375) (7,158,277)
Interest Income
(expense), net 41,300 (40,385) (873,601) (186,295)
Minority interest -- 223,601 -- 223,601
------ ------- --------- ----------
Net loss $ (16,296,959) $(2,532,566)$(33,770,976) $(7,120,971)
============== ============ ============ ===========
Net loss per
share - basic
and diluted $ (0.71) $ (0.13) $ (1.65) $ (0.37)
======== ======== ======== =======
Weighted average
shares outstanding
basic and
diluted 23,053,215 19,569,459 20,418,457 19,253,855
========== ========== ========== ==========
deltathree.com
lidated Balance Sheet
Year Ended
December 31,
1999 1998
Current Assets:
Cash and cash equivalents $ 89,956,879 $ 1,356,562
Short-term investments 11,275,915 --
Accounts receivable, net 902,811 543,335
Due from affiliates 1,759,997 2,191,903
Prepaid expenses and other current assets 2,940,676 620,676
--------- -------
Total current assets 106,836,278 4,712,476
Property and equipment, net 9,499,533 8,269,423
--------- ---------
Goodwill, net 9,456,612 12,488,125
--------- ----------
Deposits and other 1,039,887 205,497
--------- -------
Total assets: $ 126,832,310 $ 25,675,521
============= ============
Current liabilities:
Accounts payable $ 2,580,143 $ 4,301,763
Due to affiliates 625,783 1,403,163
Deferred revenues 538,376 1,610,081
Other current liabilities 5,548,771 629,096
--------- -------
Total current liabilities 9,293,073 7,944,103
--------- ---------
Long-term liabilities:
Long-term debt due to affiliates 14,751,628 5,106,602
Other 208,454 254,646
------- -------
Total long-term liabilities 14,960,082 5,361,248
---------- ---------
Total liabilities 24,253,155 13,305,351
---------- ----------
Stockholders equity:
Class A common stock 8,918 --
Class B common stock 19,569 19,569
Additional paid-in capital 157,890,969 23,083,638
Receivable for capital stock (1,231,969) --
Deferred compensation (10,670,201) (1,065,882)
Accumulated deficit (43,438,131) (9,667,155)
------------ -----------
Total stockholder's equity 102,579,155 12,370,170
----------- ----------
Total liabilities and
stockholder's equity $ 126,832,310 $ 25,675,521
============= ============
*T
--30--sdg/ny*
CONTACT: deltathree.com
Mr. Mark Hirschhorn
Vice President & Chief Financial Officer
Phone: (212) 588-3670
or
Thomson Financial Investor Relations
Mr. Erik Knettel
Phone: (212) 701-1963
or
Media:
Clifford Public Relations
Mr. Josh Epstein
Phone: (212) 358-0800
KEYWORD: afxal NEW YORK
INDUSTRY KEYWORD: INTERNET TELECOMMUNICATIONS E-COMMERCE
EARNINGS
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