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iBasis Posts Record
Traffic Volume and Revenue For First Quarter 2000
Company
Carries More Than 85 Million Minutes of Voice and
Fax Traffic on Rapidly Expanding Global IP Network
Burlington,
Mass.-April 25, 2000-iBasis,
Inc. (Nasdaq: IBAS) today announced results for the
first quarter ended March 31, 2000. First quarter revenue
was $9.73 million, a sequential quarterly increase of
28% compared with fourth quarter 1999 revenue of $7.60
million and a 303% increase over first quarter 1999
revenue of $2.41 million.
Net loss for the first quarter 2000 was $10.66 million,
or a net loss of $0.33 per basic and diluted share based
on 32.21 million weighted average shares outstanding.
This net loss compares to a first quarter 1999 net loss
of $2.84 million, or a pro forma net loss per basic
and diluted share of $0.15 based on 17.84 million pro
forma weighted average shares outstanding. On a sequential
quarterly basis, net loss for the quarter compares to
a fourth quarter 1999 net loss of $7.55 million, or
a pro forma loss of $0.27 per basic and diluted share
based on 27.99 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 benefit from solid demand for our
services and again achieved significant growth in each
of our key business indicators: revenue, minutes and
overseas lines," said Ofer Gneezy, president and
chief executive officer of iBasis. "We added 18
new carrier customers during the quarter, including
NTT, the Communications Authority of Thailand, Storm
Telecommunications, and Barak. We are also very pleased
with our first quarter operating performance in rapidly
deploying and integrating the applications software
and equipment necessary for our new carrier-grade VoCore
services."
Key Indicators
Minutes of use rose to 85.2 million minutes in the first
quarter, an increase of 33.5% over the 1999 fourth quarter's
63.8 million minutes and compared with 16.8 million
minutes in the first quarter of 1999.
The iBasis Network™ footprint grew significantly in
the first quarter. At the end of the first quarter,
the iBasis Network comprised 3,800 overseas lines, up
from 3,220 at the end of the fourth quarter, an 18%
increase. Overseas lines totaled 724 at the end of the
first quarter of 1999. The company believes that the
number of overseas lines represents the capacity of
its global network.
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. During the first quarter,
iBasis continued to expand into the European markets,
deploying a new ICO facility in Amsterdam. In addition,
ICO facilities were built in Vancouver, British Columbia,
Canada and in Cambridge, Massachusetts. The company
continues to execute on its previously announced plans
to expand the number of ICOs in its global network to
a total of 20 by the end of 2000. Presently, iBasis
maintains ICO facilities in New York, Los Angeles, Cambridge,
Mass., Hong Kong, London, Frankfurt, Amsterdam, and
Vancouver.
Operational Milestones
In the first quarter, iBasis reinforced its quality
of service leadership by continuing its deployment of
the SS7 signaling protocol (Signaling System 7) over
its global network infrastructure. SS7 is used by tier
one carriers to speed call set-up, reduce post-dial
delay and enhance overall service quality. iBasis has
achieved full SS7 deployment with SS7 connections to
all of its US carrier customers that are SS7-capable.
During the quarter, nearly 70% of U.S.-originated traffic
traveled over SS7-enabled trunks.
iBasis also announced the industry's first Service Level
Agreement (SLA) for Voice-over-Internet-Protocol (VoIP)
which guarantees call completion rates equal to or better
than those provided by any and all alternative networks,
including the Public Switched Telephone Network. iBasis
believes that this guarantee of service quality is not
only the first such guarantee in the VoIP industry,
but also the first such contract offered for carrier-to-carrier
telephony traffic.
Also during the quarter, iBasis and Cisco Systems announced
that they are joining forces to deliver carrier-class,
IP-based, VoCore (UC) services. Shortly thereafter,
iBasis began deploying the necessary UC software and
equipment in both its ICO in New York and in a new facility
in Cambridge, Massachusetts, to create a total service
capacity of 350,000 UC mailboxes. Cisco's UC solution,
called uOne™, The Cisco Open Network Exchange, uses
the open Internet Protocol (IP) standard to unify communications
including e-mail, fax, voice mail, cellular communications,
and the Web. The service deployment includes servers
from Hewlett-Packard and Sun Microsystems, email directory
servers from Software.com, and message storage systems
from EMC. iBasis' UC service is a highly scalable, IP-based,
carrier-class solution that will enable users to access
faxes, e-mail, and voice messages independent of location,
time or device. As part of this deployment, iBasis also
announced the signing of its first UC service contract,
which includes a planned initial deployment of 50,000
UC mailboxes during the second quarter of 2000.
About iBasis
Founded in 1996, iBasis (Nasdaq: IBAS) 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 VoCore, 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 70 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.
iBasis,
The iBasis Network and Assured Quality Routing are
registered trademarks of iBasis, Inc. Cisco
and Cisco Powered Network are registered trademarks
of Cisco Systems, Inc.
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iBasis,
Inc.
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Condensed
Consolidated Statements of Operations
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(Unaudited)
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THREE
MONTHS ENDED MARCH 31,
|
|
2000 |
1999 |
| |
|
|
| Net
revenue |
$
9,725,492 |
$
2,413,983 |
| Operating
expenses: |
|
|
| Data
communications and
telecommunications |
10,080,503 |
2,586,302 |
| Research
and development |
2,819,009 |
864,784 |
| Selling
and marketing |
3,288,280 |
837,253 |
| General
and administrative |
3,809,602 |
611,313 |
| Depreciation
and amortization |
1,926,272 |
233,313 |
| Total
operating expenses |
21,923,666 |
5,132,965 |
| Loss
from operations |
(12,198,174) |
(2,718,982) |
| Interest
income |
2,451,292 |
54,246 |
| Interest
expense |
(909,265) |
(60,252) |
| Other
income (expense), net |
-- |
(2,037) |
| Minority
interest in loss of joint venture |
-- |
49,000 |
| Net
loss |
(10,656,147) |
(2,678,025) |
|
Accretion
of dividends on redeemable convertible preferred
stock
|
-- |
(157,501) |
| Net
loss applicable to common stockholders |
$(10,656,147) |
$
(2,835,526) |
| |
|
|
| Net
loss per share: |
|
|
| Basic
and diluted net loss per share |
$
(0.33) |
$
(0.38) |
| Basic
and diluted weighted average common
shares outstanding |
32,205,878 |
7,526,250 |
| |
|
|
| Pro
forma net loss per share*: |
|
|
| Basic
and diluted net loss per share |
$
(0.33) |
$
(0.15) |
| Basic
and diluted weighted average common shares outstanding |
32,205,878 |
17,838,750 |
|
*Pro
forma basic and diluted net loss per share and weighted
average shares outstanding for the three months ended
March 31, 1999 were calculated assuming all preferred
stock had converted into common stock as of the date
of original issuance.
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iBasis,
Inc.
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Condensed
Consolidated Balance Sheets
|
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(Unaudited)
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| |
|
|
|
March
31,
|
December
31,
|
|
2000 |
1999 |
| Assets |
|
|
|
|
|
| Current
assets |
|
|
| Cash,
cash equivalents and marketable securities |
$391,828,447 |
$123,665,961 |
| Accounts
receivable, net |
6,264,142 |
5,404,338 |
| Prepaid
expenses and other current assets |
1,769,593 |
964,675 |
| Total
current assets |
399,862,182 |
130,034,974 |
|
|
|
| Property
and equipment, net |
34,153,554 |
22,390,115 |
| Deferred
financing costs, net |
4,973,254 |
|
| Other
assets |
1,031,224 |
1,048,000 |
|
$440,020,214 |
$153,473,089 |
|
|
|
|
|
|
| Liabilities
and Stockholders’ Equity |
|
|
|
|
|
|
| Current
liabilities: |
|
|
| Accounts
payable |
$
6,240,654 |
$
6,112,938 |
| Accrued
expenses |
6,022,385
|
4,391,296 |
| Current
portion of long term debt |
6,622,890
|
4,376,280 |
| Total
current liabilities |
6,622,890 |
14,880,514 |
| |
|
|
| Long
term debt, net of current portion |
164,156,283 |
11,688,843 |
|
|
|
| Stockholders’
equity: |
|
|
| Common
stock |
33,832 |
31,642 |
| Additional
paid-in capital |
297,466,653 |
156,887,447 |
| Deferred
compensation |
(2,051,526) |
(2,200,547) |
| Accumulated
deficit |
(38,470,957) |
(27,814,810)
|
| Total
stockholders’ equity |
256,978,002 |
126,903,732
|
|
$440,020,214
|
$153,473,089
|
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