iBasis 3Q Loss 84c/Shr
iBasis Inc. - Burlington, Mass.
3rd Quar Sept. 30:
2001 2000
Revenue $33,323,452 $17,213,066
Net income a (37,103,630) b (17,487,276)
Avg shrs 44,231,926 34,101,455
Shr earns
Net income a (.84) b (.51)
Figures in parentheses are losses.
a. Includes costs of $7,059,161 for amortization of goodwill and other acquired intangible assets, as well as noncash compensation costs of $334,264. Excluding items, the loss would have been $29.7 million, or 67 cents a share.
b. Includes noncash compensation costs of $261,760.
iBasis Inc.'s (IBAS) third quarter gross margins fell to 14.9% of revenue, or $4.98 million, from second quarter gross margins of 16%, or $5.48 million.
The provider of Internet-based voice communications said it used about $36.1 million of cash during the third quarter, including cash capital expenditures.
At Sept. 30, the company had $147.6 million of cash, cash equivalents and marketable securities.
iBasis Inc. reduced its work force again by about 10% to 460 employees, due to difficult market conditions.
In April, the company cut its work force by 15%, which was expected to position the company for profitability in the first quarter.
The company said Thursday the job cuts are part of its plan to reduce annual operating expenses by about $10 million over the next four quarters.
iBasis expects to end the year with $110 million to $120 million in cash, cash equivalents and marketable securities.
For the rest of 2001, the company doesn't expect additional capital expenditures to be more than $15 million to $20 million.
iBasis lowered its 2001 revenue estimate to between $130 million to $140 million from its July revenue guidance of $150 million to $160 million.
Wall Street consensus estimates place the company's 2001 loss at $2.07 a share on revenue of $148 million, according to a survey of analysts by Thomson Financial/First Call.
The company's 2000 loss was $62.3 million, or $1.85 a share, on revenue of $61.2 million.
In July, iBasis said it expected positive earnings before interest, taxes, depreciation and amortization in 2002.
The company updated its guidance, and said it now expects to achieve positive EBITDA in the second half of 2002.
iBasis also said its steady-state gross margin target is 25% to 35%, and it is targeting a steady-state gross margin of 20% to 25% in its core voice over internet protocol, or VoIP, business.
iBasis named Richard Tennant chief financial officer and vice president of finance and administration to replace interim Chief Financial Officer D.J. Long, who will remain vice president of corporate development.
Michael J. Hughes resigned as chief financial officer and vice president of finance and administration in June to become chief financial officer of Gotham Networks, Acton, Mass., a provider of communications infrastructure for telecommunications service providers.
iBasis said Tennant was chief financial officer, treasurer and vice president of ScoreBoard Inc., a software start-up company targeting the wireless carrier market.
9 Months Sept. 30:
2001 2000
Revenue $94,646,150 $40,546,097
Net income c (157,045,532) d (41,460,904)
Avg shrs 42,031,840 33,416,437
Shr earns
Net income c (3.74) d (1.24)
Figures in parentheses are losses.
c. Includes $24,431,466 write-off of in-process research and development costs; $16,517,681 for amortization of goodwill and other acquired intangible assets; and noncash compensation costs of $1,047,540. Excluding items, the loss would have been $77.5 million, or $1.84 a share.
d. Includes noncash compensation costs of $559,802. Excluding item, the loss would have been $40.9 million, or $1.22 a share.
Company Web site: ibasis.com |
