To: detroit denny who wrote (2351 ) 11/1/1999 9:45:00 AM From: Richard J Lamarre Read Replies (2) | Respond to of 2891
Hey Denny, did you see this: SAN DIEGO--(BUSINESS WIRE)--Oct. 28, 1999-- INTERNET STOCK NEWS: Oct. 28, 1999 "Pre-IPO Report: iBasis" by A. Sahoo, ISN Writer Also available on the Web at internetstocknews.com Internet telephony IPOs have been hot this summer: ITXC Corp. (Nasdaq:ITXC.O), Net2Phone (Nasdaq:NTOP.O), Clarent Communications (Nasdaq:CLRN.O) and Phone.com (Nasdaq:PHCM.O) are currently trading at 300%, 500%, 600% and a whopping 2000%, of their July issue prices, respectively. Next on the block is iBasis (Nasdaq:IBAS), scheduled to price the week of November 1. Judging from its vital signs, it looks like another winner. iBasis, formerly VIP Calling Inc., provides wholesale voice and fax over Internet Protocol services over its Cisco-powered iBasis Network(TM), a network of high-capacity points of presence located across Asia, Europe, the Middle East and the Americas. Founded just three years ago, it has already established a large infrastructure, fueled by deals with local telcos in China, Japan and Hong Kong. Unlike the many IT companies that are marketing services directly to users (E-Net (Nasdaq:ETEL), Franklin Telecommunications (AMEX:FCM.A), Net2Phone (Nasdaq:NTOP.O), and others), iBasis' customers are carriers and telephony resellers -- putting it in the smaller category of offering large scale, "carrier class" services a la ITXC and AT&T Clearinghouse (NYSE:T.N) -- a market segment controlled by a handful of players and estimated by International Data Corp. to grow to $2.0 billion by 2004. One thing I really like about this company is its pedigree. There's just no substitute for seasoned management and brand-name relationships. President & CEO Ofer Gneezy -- an MIT & Harvard trained engineer and executive -- proved his leadership ability when he created Acuity Imaging, a multinational leader in industrial automation, led it to profitability, and then orchestrated its acquisition by the second largest company in its industry. The rest of the team has similar experience in high tech and telecommunications. Venture capital funding has come from established talent spotters Integral Capital Partners, Menlo Ventures and Technology Crossover Ventures, who have contributed funding towards some of the tech world's most successful enterprises, including Healtheon (Nasdaq:HLTH.O), Inktomi (Nasdaq:INKT.O), Ascend Communications (Nasdaq:ASND), Infoseek (Nasdaq:SEEK), Hotmail -now (Microsoft:MSFT) and Intuit (Nasdaq:INTU.O). The underwriting is being led by Robertson Stevens and Hambrecht & Quist. iBasis has also established strategic relationships with well-known IT players. As one of Cisco's (Nasdaq:CSCO.O) 30 Alliance Partners, IBAS has access to matching funds and resources for sales, marketing and technical development activities. It is also working with Belle Systems on billing system integration and is licensing call routing software from Netspeak (Nasdaq:NSPK.O). Typical of companies in this sector, revenues have been growing exponentially -- from $1.9 million in service revenues last year, to more than $6 million for the half of 1999 -- with a 41 cents per share loss for the first half of this year. Representing about 31.1 million minutes of traffic over its network, that puts IBAS in the same size category as its principal competitor, ITXC. A note of caution on these glowing sales figures, however -- IBAS' prospectus clearly states that 40% of sales are derived from just 3 customers -- World Access Telecom Group, Star Telecomm and WorldxChange Communications. Problems with one or more of these accounts could significantly impact IBAS' share price once it begins trading. Given the oftentimes-irrational nature of the market -- particularly in regards to Internet-related IPOs -- it's impossible to predict what will happen to IBAS once it hits the boards next week. Judging from the performance of comparable IPOs, however, I'm betting that, at least in the near to mid-term, IBAS will be a winner. Sorry for the poor pasting job...but I do like what it says about our FCM. Later, Rick