7/19...IBAS...Announces Record 2Q 2000 Traffic Volume, Revenue
Company Achieves 40% Sequential Quarterly Traffic and Revenue Growth and Positive Gross Margin for the Quarter
BURLINGTON, Mass.--(BUSINESS WIRE)--July 19, 2000--iBasis, Inc. (Nasdaq: IBAS - news) today announced results for the second quarter ended June 30, 2000. Second quarter revenue was $13.61 million, a sequential quarterly increase of 40% compared with first quarter 2000 revenue of $9.73 million and a 276% increase over second quarter 1999 revenue of $3.62 million.
Net loss for the second quarter 2000 was $13.32 million, or a net loss of $0.39 per basic and diluted share based on 33.96 million weighted average shares outstanding. On a sequential quarterly basis, net loss for the quarter compares to a first quarter 2000 net loss of $10.66 million, or a loss of $0.33 per basic and diluted share based on 32.21 million weighted average shares outstanding. This net loss also compares to a second quarter 1999 net loss of $4.58 million, or a pro forma net loss per basic and diluted share of $0.27 based on 17.85 million pro forma weighted average shares outstanding. Pro forma basic and diluted net loss per share and weighted average shares outstanding were calculated assuming all preferred stock had converted into common stock as of the date of original issuance.
``We continue to execute effectively on our business plan. During the second quarter we grew our volume of traffic, expanded our network footprint, deployed the infrastructure for new value added services, and established new relationships with tier one carriers around the world,'' said Ofer Gneezy, president and chief executive officer of iBasis. ``In addition, favorable traffic growth rates and mix combined with improved network utilization enabled us to achieve a full quarter of positive gross margin several quarters ahead of plan.''
Key Indicators
Minutes of use rose to 119.4 million minutes in the second quarter, an increase of 40% over 2000's first quarter of 85.2 million minutes and is a 282.7% increase compared with 31.2 million minutes in 1999's second quarter.
The iBasis Network(TM) footprint continued to grow significantly in the second quarter. At the end of the second quarter, the iBasis Network comprised 5,500 overseas lines, up from 3,800 at the end of the first quarter, a 44.7% increase. Overseas lines totaled 1,141 at the end of the second quarter of 1999.
Indicative of the success the company achieved in expanding its wholesale customer base during the quarter, iBasis added more than 20 new customers, including major international carriers China Mobile, JITONG Communications, Concert, Telstra, and Mexican national carrier Protel.
Also during the quarter, the company completed the deployment of the unified communications infrastructure necessary to support 350,000 subscriber mailboxes through its hosted unified communications solution.
The iBasis Network consists of high-capacity, carrier-class Internet Central Offices (ICOs) as well as Internet Branch Offices (IBOs) located throughout Asia, Africa, Europe, the Middle East and the Americas. Through its partnerships, iBasis can terminate phone traffic in every country in the world. Presently, iBasis maintains ICO facilities in New York, Los Angeles, Cambridge, Mass., Hong Kong, London, Frankfurt, Amsterdam, and Vancouver.
About iBasis
Founded in 1996, iBasis (Nasdaq: IBAS - news) is the leader in advanced Internet-based communications. iBasis has built the world's first global IP network that delivers toll quality voice and fax service and other advanced hosted communications solutions, including Unified Communications, to global tier one carriers and other service providers. The iBasis Network is the world's largest international Cisco Powered Network for Internet Telephony. More than 95 international carriers are iBasis customers including 11 of the top 12 US international carriers. The company can be reached at its worldwide headquarters in Burlington, Mass., USA at 781-505-7500 or on the Internet at www.ibasis.net.
Except for historical information, all of the expectations, projections and assumptions contained in the foregoing press release constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. Important factors that could cause actual results to differ materially from such forward-looking statements include, but are not limited to, the considerations described as ``Risk Factors'' in iBasis' prospectuses dated March 9, 2000, and the company's other SEC filings.
Assured Quality Routing is a registered servicemark, and iBasis and The iBasis Network are trademarks of iBasis, Inc. Cisco and Cisco Powered Network are registered trademarks of Cisco Systems, Inc.
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iBasis, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
THREE MONTHS ENDED JUNE 30,
2000 1999
Net revenue $ 13,607,538 $ 3,623,021
Operating expenses:
Data communications and
telecommunications 13,521,184 4,028,563
Research and development 4,454,141 1,317,442
Selling and marketing 4,613,256 1,209,747
General and administrative 4,478,473 887,221
Depreciation and amortization 2,365,867 631,479
Gain on disposal
of property and equipment ---- (15,297)
Total operating expenses 29,432,921 8,059,155
Loss from operations (15,825,383) (4,436,134)
Interest income 6,041,616 30,773
Interest expense (3,533,713) (168,912)
Other income (expense), net ---- (1,300)
Net loss (13,317,480) (4,575,573)
Accretion of dividends
on redeemable convertible
preferred stock ---- (157,500)
Net loss applicable
to common stockholders $(13,317,480) $ (4,733,073)
Net loss per share:
Basic and diluted
net loss per share $ (0.39) $ (0.63)
Basic and diluted weighted
average common shares outstanding 33,961,212 7,560,000
Pro forma net loss per share(A):
Basic and diluted
net loss per share $ (0.39) $ (0.27)
Basic and diluted weighted
average common shares outstanding 33,961,212 17,846,291
(A) Pro forma basic and diluted net loss per share and weighted
average shares outstanding for the three months ended June 30, 1999
were calculated assuming all preferred stock had converted into common
stock as of the date of original issuance.
iBasis, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
SIX MONTHS ENDED JUNE 30,
2000 1999
Net revenue $23,333,030 $6,037,004
Operating expenses:
Data communications and
telecommunications 23,601,687 6,614,865
Research and development 7,273,150 2,182,226
Selling and marketing 7,901,536 2,047,000
General and administrative 8,288,075 1,498,534
Depreciation and amortization 4,292,139 864,793
Gain on disposal of
property and equipment -- 15,297)
Total operating expenses 51,356,587 13,192,121
Loss from operations (28,023,557) (7,155,117)
Interest income 8,492,908 85,019
Interest expense (4,442,978) (229,164)
Other income (expense), net -- (3,337)
Minority interest in loss
of joint venture -- 49,000
Net loss (23,973,627) (7,253,599)
Accretion of dividends on
redeemable convertible
preferred stock -- 315,000
Net loss applicable to
common stockholders $(23,973,627) $(7,568,599)
Basic and diluted net loss per share $(0.72) $(1.01)
Basic and diluted weighted
average common shares
outstanding 33,083,545 7,530,041
Pro forma net loss per share(A):
Basic and diluted net loss per share $(0.72) $(0.41)
Basic and diluted weighted
average common shares
outstanding 33,083,545 17,842,541
iBasis, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, March 31,
2000 2000
Assets
Current assets:
Cash, cash equivalents
and marketable securities $ 372,492,359 $ 391,828,447
Accounts receivable, net 9,787,053 6,264,142
Prepaid expenses and
other current assets 3,467,261 1,769,593
Total current assets 385,746,673 399,862,182
Property and equipment, net 63,502,887 34,153,554
Deferred financing costs, net 4,837,352 4,973,254
Other assets 1,976,140 1,031,224
Total assets $ 456,063,052 $ 440,020,214
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 4,022,037 $ 6,240,654
Accrued expenses 10,750,119 6,022,385
Current portion of long term debt 15,943,436 6,622,890
Total current liabilities 30,715,592 18,885,929
Long term debt, net of current portion 181,315,510 164,156,283
Stockholders' equity:
Common stock 34,078 33,832
Additional paid-in capital 297,688,813 297,466,653
Deferred compensation (1,902,504) (2,051,526)
Accumulated deficit (51,788,437) (38,470,957)
Total stockholders' equity 244,031,950 256,978,002
Total liabilities and
stockholders' equity $ 456,063,052 $ 440,020,214
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Contact:
iBasis, Inc.
Chris Ward, 781 505-7500
cward@ibasis.net
or
C.H.E.N. PR
Kevin Kosh, 781 466-8282
kkosh@chenpr.com
or
iBasis, Inc.
John Quirk, 781 505-7409
jquirk@ibasis.net |
