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

To: Hawaii60 who wrote (11308)	7/14/1999 11:01:00 AM
From: vinh pham	Read Replies (1) \| Respond to of 30916

To all: a great article on NTOP IPO's prospect by LaunchingPad.com this morning. << IT Index For the week ending 7/9 IT Index reached a 6 week high, passing a 30% increase since the start of the year. Inter-Tel(INTL) was the top performer, rising another 20% and more then 50% in the past three weeks. Teltran(TLTG) continues to impress, closing at $11.87, a 19% increase and 163% gain since being added to the Index 5 weeks ago. Natural Microsystems(NMSS) rose 10%, RMI.net(RMII) moved ahead 11%, and RSL Communications(RSLC) awaiting further word on the Delta Three IPO traded higher by 12%. At the end of July to early August, Net2Phone(NTOP), IDT Corporation's Internet Telephony subsidiary is set to IPO, and it's success should outshine that of Clarent's(CLRN) sizzling performance. As the first NextGen Telco, Net2Phone stands to set the mark as a stock, as they have as an ITSP(Internet Telephony Service Provider). NTOP began offering PC2Phone, a software program enabling a PC to call a telephone, in 1996, ending the stigma of a PC only being able to call another computer to connect the speakers. This allowed a savings tool to bypass standard long distance charges, the first break in the armor of the Traditional/PTSN Carriers. Net2Phone increased the accessibility of IT cost structure when Phone2Phone service was introduced in Fall of 1997. This opened the gates for the industry to attack the core business and residential customers that have been searching for means of reducing long distance charges. Net2Phone is the marketshare leader in the Voice-via-IP calls and has led the sector in visibility via marketing and advertising campaigns that have brought national attention to their service. NTOP has purchased over $1.5 million dollars worth of advertising from NBC, mainly on the CNBC and MSNBC stations for NTOP's Phone2Phone service. On the Cyber front, alliances and distribution channels include Yahoo!, Excite, InfoSpace.com, Snap.com, AOL and Bigfoot.com, all integrating or utilizing Net2Phone software to reach the customer bases of these Net communities. These agreements has increased the cost of revenues and has caused an increased loss per share. The most recent 9 month period ended April 30th, showed a .09 loss versus a .02 loss from the same period a year ago, however the increase in customers and revenues have brought Net2Phone the leadership role in the terms of customers and minutes. For the 9 months ended April 30th, revenues rose dramatically to $22 million dollars and for the latest Quarter revenues were just over $9 million, with the last 3 quarters increasing at a steady rate of $1.5 million per Q. One of the most noticeable trends in NTOP balance sheets is the increase of Phone2Phone service as a percentage of the overall revenue mix, accounting for 32.5% of last Quarter's numbers. The Phone2Phone service has a higher profit margin, and should help the narrow the losses in coming Quarters. With a customer base of over a quarter of million users, NTOP has been averaging over 20 million Internet Telephony minutes per month, and Net2Phone has estimated that their customers make an average of 60 minutes per month. With the backing of Bear Stearns, Hambrecht & Quist, BT Alex. Brown, SOFTBANK Technology Ventures and America Online, this IPO will be one to watch, as Net2Phone under the leadership of IDTC, has been the vanguard of the sector. IDT will still retain control of Net2Phone owning 58% of NTOP,and IDTC will be the network supplier and carrier that will terminate calls for Net2Phone. NTOP will replace IDTC on the IT Index starting in August. >>