 |
iBasis
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.- July
19, 2000 - iBasis, Inc. (Nasdaq: IBAS) 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™ 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 VoCore infrastructure necessary to support 350,000
subscriber mailboxes through its hosted VoCore 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) 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
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.
| 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*:
|
|
|
|
|
|
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
|
*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
|
|
--
|
| |
