S. Fancy, here are some numbers from the S1 filing on NTOP to show that the revenue on PC2Phone increases annually and that in reporting the revenue NTOP even defers the unused balances on the customers' accounts. surely, this means that the company reports revenue based on billed minutes rather than the initial prepaid $25 as you inferred by your statement "the majority of those that try the PC to phone product don't use it a second time."
> Period from
January 2, 1996 Year Ended Six Months Ended
(inception) July 31, January 31,
to July 31, 1996 ------------------------ --------------------------
1997 1998 1998 1999
---------------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Statement of Operations Data: Revenue:
PC2Phone.............. $ -- $ 2,170,442 $ 7,962,821 $ 3,071,410 $ 8,586,422
Phone2Phone........... -- 272 2,030,516 219,422 3,567,781
Other................. -- 481,589 2,012,635 1,724,090 1,011,683
---------- ----------- ----------- ------------ ------------
Total Revenue....... -- 2,652,303 12,005,972 5,014,922 13,165,886
---------- ----------- ----------- ------------ ------------
"As of March 31, 1999, we were serving approximately 250,000 active customers who
spent an average of 60 minutes per month using their personal computers to
place calls over the Internet. We recognize revenue as our customers utilize
the balances in their prepaid accounts by placing calls. As such, we typically
have deferred revenue for all unutilized balances in our customers' accounts."
"Comparison of Six Months Ended January 31, 1998 and 1999
Revenue. Revenue increased 164% from $5.0 million for the six months ended
January 31, 1998 to $13.2 million for the six months ended January 31, 1999. Of
total revenue for the six-months ended January 31, 1999, PC2Phone generated
$8.6 million and Phone2Phone generated $3.6 million. The increase in revenue
was primarily due to an increase in billed-minute usage resulting from
additional marketing of our Internet telephony products and services.
Specifically, revenue from PC2Phone services increased 177% from $3.1 million
for the six months ended January 31, 1998 to $8.6 million in revenue for the
corresponding six-month period in 1999. Revenue from Phone2Phone increased by a
factor of 15 from $219,000 for the six months ended January 31, 1998 to $3.6
million for the six months ended January 31, 1999."
freedgar.com
go to pages 17, 18, and 20 you'll find the above table and excerpts. |
