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Technology Stocks : IDT *(idtc) following this new issue?* -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (9297)	6/16/1999 12:52:00 AM
From: Secret_Agent_Man	Read Replies (2) \| Respond to of 30916

IDT Corporation and Net2Phone - Making money in the VoIP market.Stocks in Focus Jun 15 1999 10:29AM CST by Paul Anthony Thomas Contributing Editor IDT Corporation [IDTC] is a telecommunications company which offers integrated long-distance telephone and Internet access services. IDTC pioneered what is now a $2 billion dollar a year industry, the international "call-back" telephone service. This technology allows customers to bypass the high costs of international calls. Callback gives the caller the ability to make the international call as if they were calling from the United States at greatly reduced savings. Today, IDT offers domestic and international telephone service to customers in over 225 countries. IDTC has also developed a profitable wholesale telecommunications business and has become a leading carrier's carrier. The company routes millions of minutes of international calling traffic from other carriers through its own telecommunications switching and network infrastructure. Its wholesale customer base includes MCI/WorldCom, Cable & Wireless, LCI, and Frontier Communications. IDTC has further expanded its network to include niche markets such as South America, the Caribbean, and the Far East, the company has also signed agreements to lower the effective costs of terminating call traffic. In addition, the Company has established a facilities-based network in the UK: they own dial tone. IDTC has also emerged as one of the nation's fastest growing Internet Service Providers (ISP's). The Internet division has over 700 points of presence across 46 states with a nationwide customer base of over 80,000. Additionally, the company provides 56K-T3 access, virtual private networks, corporate dedicated voice services, e-commerce applications, web hosting and web design. Net2Phone Released in August 1996, Net2Phone enables computer users to place calls via the Internet to a regular telephone. Net2Phone charges users on a per minute basis by connecting them through the Internet to an existing debit card platform. By transporting telephone calls internationally over the Internet and terminating them through the IDTC centralized telephone switching platform, IDTC is able to provide international calling at rates up to 95% below the rates charged by traditional carriers. IDTC also offers Net2Phone Direct, which enables users to place calls via the Internet with both the caller and recipient using conventional telephones for as little as 5 cents per minute. As of August 1998, IDTC had over 600 employees. For the 6 months ended January 31, 1999, revenues totaled $294M, up from $125.7M in 1998. Revenues reflect an increase in minutes of use. Net income rose 36% to $6.9M. For the 3 months ended 04/30/1999, revenues were $191M; after tax earnings were $2M. IDTC is expected to post earnings above $10M in 1999. Net2Phone has agreed to partner with America Online to provide telephone access using VoIP on the AOL portal site. In another development, the newest version of Netscape Navigator will have a Net2Phone button on the toolbar which will make VoIP access a click away. In looking at the 5 year chart of this stock, one money making strategy would be to play this stock as a patient investor, possibly holding some shares in the portfolio constantly. One way to do this would be to accumulate on dips, sell when you have gains and "cash out" with shares remaining (buy 500 shares, sell 300 when the price goes up, leave the rest in your portfolio for retirement). sorry if already posted wallstreetcity.com cheers