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Technology Stocks : EGLO Executive Telecard -- Ignore unavailable to you. Want to Upgrade?

To: Howard C. who wrote (117)	1/8/2000 5:18:00 PM
From: Thu Ra Tin	Respond to of 300

ANOTHER ANALYST REPORT ON EGLO by: break_the_bank 1/8/2000 2:31 pm EST ============================================== "Today eGlobe (EGLO) announced that it achieved record revenues in the September quarter. While overall revenues grew 56% during the first three quarters of 1999, the Voice over Internet Protocol (VoIP) services acquired by the company last December increased at a more rapid pace, growing 350% thus far in 1999. The network services unit of the company, which provides the IP network and services to national carriers around the world, saw a 77% increase in revenues with an almost 60% increase in minutes carried. Chairman Christopher Vizas said: "We met our targets in the VoIP and exceeded them in network expansion. We are pleased with the 77% revenue growth in network services and with the almost 60% growth in minutes carried, to more than 27 milion in this quarter. Because we took advantage of the unique opportunities to acquire network operating assets, which we believe will create long term returns, but which required immediate increases in expenses, we did not achieve all of the margin improvements we desired." Vizas' comments reflect the belief of eGlobe management that its global IP network and its sales and service performance in Voice over IP are competitive with other companies providing similar services, specifically mentioning Net2Phone, iBasis and ITXC Corp. To the extent that eGlobe can be compared with these companies, EGLO is clearly very much undervalued. For example, eGlobe is trading at 1.6 times trailing 12 month sales, while ITXC trades at 186.7, Net2Phone at 81.5, and iBasis is a start-up with no operating history while supporting a market value of over a billion dollars. None of these four companies are profitable, yet the others carry market capitalizations ranging from $1.06 Billion to $2.71 Billion, as compared to $58 million for eGlobe. One can only wonder how eGlobe would be valued if it were an IPO in todays' market.