BURLINGTON, Mass., Feb. 04, 2004 -- iBasis, Inc. (OTCBB: IBAS), today announced results for the fourth quarter and the full year ended December 31, 2003.
Fourth quarter revenue was $53.2 million, an increase of 24% over fourth quarter 2002 revenue of $42.9 million. For the full year 2003, revenue was $178.2 million, an increase of 8% over 2002 revenue of $164.9 million.
Net loss for the fourth quarter 2003 was $2.6 million or $(0.06) per share, based on 44.8 million weighted average shares outstanding. This net loss compares to a net loss of $10.8 million or $(0.24) per share for the fourth quarter 2002, based on 44.6 million weighted average shares outstanding.
Net loss for the full year 2003 was $9.7 million or $(0.21) per share, based on 44.7 million weighted average shares outstanding. This net loss compares to a net loss of $121.7 million or $(2.70) per share in 2002, based on 45.2 million weighted average shares outstanding.
Highlights of the fourth quarter and the full year include:
- Increased revenue 21% from Q3 to Q4;
- Increased gross margins 29% from Q3 to Q4;
- Achieved positive cash flow for Q4;
- Increased average revenue per minute (ARPM) to 5.6 cents in Q4 from 5.1 cents in Q3;
- Increased minutes 35% in 2003 to 3.5 billion, compared to 2.6 billion minutes in 2002.
"We achieved exceptional results in the fourth quarter of 2003 with strong sequential growth in both revenue and gross margins and with positive cash flow. During the year we also made progress on the balance sheet. We improved our net cash by $16 million by reducing our debt $31 million while cash declined by only $15 million," said Ofer Gneezy, president and CEO of iBasis. "We continue to grow both our Wholesale VoIP business and our newer Prepaid and other Enhanced Services business (P& ES). Beginning this quarter we are providing revenue and gross margin results for each of these activities to enable investors to track our progress in each."
| ($ in millions) | Wholesale VoIP | P & ES | iBasis Total |
| Revenue | $50.8 | $2.4 | $53.2 |
| Gross Margin* | $6.5 | $0.6 | $7.1 |
| Gross Margin % | 12.9% | 23.5% | 13.4% |
| * Net revenue less Data Communications and Telecommunications costs. |
Key Indicators
Minutes of use on The iBasis Network™ in the fourth quarter rose to 955 million minutes, a 10% sequential increase over the 866 million minutes in the third quarter of 2003. Average revenue per minute was 5.6 cents per minute in the fourth quarter of 2003, a significant increase from 5.1 cents per minute in Q3 2003.
Operational Highlights
Tier One carrier customers generated 59% of revenue in the fourth quarter of 2003, compared to 63% of revenue in Q3 2003. During the fourth quarter 5 of our top 10 customers were Tier One carriers. Overseas-originated calls accounted for 41% of revenue in the fourth quarter of 2003, compared to 44% of revenue in the third quarter 2003.
In 2003, iBasis continued to expand its customer base, with major service providers from every region connecting to The iBasis Network. Customers announced in 2003 included 3U Telecom (Germany), Albacom (Italy), Cantv (Venezuela), CAT Telecom (Thailand), Rostelecom (Russia), and Vebtel (India). iBasis finished the year with 237 customers.
Guidance
The following statements are forward-looking and actual results may differ materially due to factors noted below, among others. The information provided in this financial outlook is as of February 4, 2004, and supersedes all previous guidance.
The Company believes it will achieve positive cash flow and net income in mid-2004, and that it will achieve positive cash flow for the year 2004. The Company will continue to focus on re-capitalization and believes its financial performance in 2004 will enable it to refinance remaining bond debt due in Q1 2005.
Special Shareholder Meeting
The Company will hold a special shareholder meeting on February 18, 2004 to vote on a proposal to give the iBasis board of directors authority to effect a reverse split of iBasis' common stock. The reverse split is proposed for the purpose of achieving compliance with the listing requirements of the NASDAQ SmallCap or National Market.
About iBasis
Founded in 1996, iBasis (OTCBB: IBAS) is a leading provider of wholesale international telecommunications services. For the past two years the company has been named by service providers as the best international wholesale carrier in Atlantic-ACM's annual International Wholesale Carrier Report Card1. iBasis is a preferred provider for many of the largest carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Telefonica, Telenor, and Telstra. iBasis has carried more than six billion minutes of international voice traffic over its global Cisco Powered Network™, and is one of the ten largest carriers of international voice traffic in the world2. In addition to its wholesale international telecommunications services, iBasis provides retail prepaid calling cards to major distributors, utilizing the international iBasis Network. Based on its revenue growth from 1997 through 2001, iBasis was ranked the #8 fastest-growing technology company in North America and the #1 fastest-growing technology company in New England in the Technology Fast 500 national program sponsored by Deloitte & Touche. The company can be reached at its worldwide headquarters in Burlington, Massachusetts, USA at 781-505-7500 or on the Internet at www.ibasis.com.
The New England Technology Fast 50 program is presented by Deloitte & Touche and Hale and Dorr, in association with the sponsor, Mazonson Inc. In addition, Mass High Tech and Trinity Communications are associated with the program.
Consolidated Balance Sheets and Consolidated Statements of Operations for Quarter 4, 2003, in PDF format