VocalTec Announces 2008 Fourth Quarter and Full Year Results
VocalTec Communications Ltd. (NasdaqCM:VOCL), a global provider of carrier-class multimedia and voice-over-IP solutions for communication service providers, today reported results for the fourth quarter and year ended December 31, 2008.
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Revenues for the fourth quarter of 2008 were $1.5 million. Revenues for 2008 were $6.1 million, an increase of 6% compared to revenues of $5.8 million in 2007. Gross margin was 52% for the fourth quarter of 2008 and 52% for 2008 compared with 41% for 2007, which was negatively affected by an inventory write-off.
Operating expenses for the fourth quarter of 2008 included an income of $6.1 million, net, from the sale of 4 patents, as announced on December 23, 2008. This follows a prior sale of 11 patents in the third quarter of 2008. The aggregate net income from patent sales in 2008 was $14.9 million. As such, operating expenses for the fourth quarter of 2008 were $0.4 million, while operating expenses for the full year were an income of $0.5 million.
Operating expenses, excluding the effect of impairment of goodwill, amortization of intangible assets, share-based compensation expenses and income from the patents sale, were $2.3 million in the fourth quarter and $9.1 million for 2008, a 9% reduction compared with operating expenses of $10.0 million in 2007.
Net income for the fourth quarter of 2008 was $0.5 million, or $0.07 per share. Net income for the full year 2008 was $3.7 million, or $0.50 per share, compared with a net loss of $14.2 million, or $1.92 per share, in 2007.
On a non-GAAP basis, net income for the fourth quarter of 2008 was $4.7 million, or $0.64 per share, and for the full year 2008 was $9.4 million, or $1.27 per share, compared with a net loss of $7.0 million, or $0.95 per share, in 2007.
As of December 31, 2008, the Company had net cash and cash equivalents, short term deposits and restricted cash in the amount of $15.5 million, or $2.11 per share.
Commenting on the results, Ido Gur, the Company’s President and Chief Executive Officer, said: “We close 2008 and move into 2009, by starting a new chapter in VocalTec’s history. We begin 2009 with a new and highly motivated management team, as well as a very strong cash position with which to execute on our strategic plan. The successful monetization sale during 2008 of part of our patent portfolio maximized the value of these assets for our shareholders without any impact on our operations, and enables us to move into 2009 with a stronger ability to grow the business, return to profitability and realize the full potential of our VoIP solutions.”
Mr. Gur continued: “In 2009, we hope to see the fruits of our efforts that we have recently put in place. While we expect the first quarter to show a decline in revenues, we are confident that revenues for the full year 2009 will increase. We are highly focused on lowering costs and on expanding our penetration into the territories in which we operate, particularly Russia and Africa. We believe that our VoIP solutions very much fit the needs of our target markets, particularly in current times, providing them with a fast return on investment.”
Conference Call
Mr. Ido Gur, President and CEO of VocalTec, invites investors to participate in a conference call scheduled for Monday, March 2, 2009, at 10:00 am ET. On the call, management will review and discuss the results, and will be available to answer questions.
To participate, please call one of the following teleconferencing numbers, 5 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
US Dial-in Number: 1 888 723 3164
ISRAEL Dial-in Number: 03 918 0688
INTERNATIONAL Dial-in Number: +972 3 918 0688
For those unable to listen to the live call, a replay of the call will be available from a link in the investor relations section of VocalTec’s website, at: http://www.vocaltec.com
About VocalTec
VocalTec Communications (NasdaqCM:VOCL) is a global provider of carrier-class multimedia and voice-over-IP solutions for communication service providers. A pioneer in VoIP technology since 1994, VocalTec provides proven trunking, peering and residential/enterprise VoIP application solutions that enable flexible deployment of next-generation networks (NGNs). Partnering with prominent system integrators and equipment manufacturers, VocalTec serves an installed base of dozens of leading carriers including Deutsche Telekom and Telecom Italia San Marino. VocalTec is led by a management team comprised of respected industry veterans.