VoIP Provider VocalTec Announces First Quarter 2009 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 first quarter ended March 31, 2009.
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Revenues for the first quarter of 2009 were $1.0 million compared with $1.5 million for the fourth quarter of 2008. The lower revenue level in the quarter was in line with the Company’s expectations, as previously announced, and was due to seasonal effects as well as the global economic slowdown. In addition, the changes that management has recently instituted, primarily as reflected in the restructuring of the sales organization, are expected to impact the business in the second half of the year.
Gross margin for the first quarter of 2009 was 64% compared with 52% for the fourth quarter of 2008.
Excluding the effect of the impairment of goodwill and intangible assets, amortization of intangible assets and share based compensation expenses, the operating expenses and the operating loss in the first quarter of 2009 were $1.9 million and $1.2 million, respectively. This is compared with $2.3 million and $1.5 million in the fourth quarter of 2008, respectively (which also excludes the income from the sale of patents). This represents a sequential reduction of 18% in operating expenses and a reduction of 17% in operating loss.
Net loss for the first quarter of 2009 was $1.5 million, or $0.21 per share, compared with a net income of $0.5 million, or $0.07 per share, in the fourth quarter of 2008. On a non-GAAP basis, net loss for the first quarter was $1.1 million or $0.17 per share, compared with a net income of $4.7 million, or $0.64 per share in the fourth quarter of 2008, which includes $6.1 million in income from the sale of patents.
As of March 31, 2009, the Company had net cash and cash equivalents, short and long term bank deposits and restricted cash in the amount of $12.3 million, or $1.79 per share.
Commenting on the results, Ido Gur, the Company’s President and Chief Executive Officer, said, “Our first quarter 2009 results demonstrate that we are on track with our strategic plan, growing our pipeline and bookings, while continuing to reduce costs. We reduced our non-GAAP operating loss by 17% sequentially, improving our bottom line, and we expect this trend to continue in the coming quarters. An additional recent positive development was the order we announced for US$5 million from Mobitel Nigeria, for the roll-out of its next-generation network over the coming twelve months. Our pipeline also increased in the quarter, particularly in Russia and Africa, two of our primary strategic markets.”
Continued Mr. Gur, “As we approach the half-way point in 2009, I feel more comfortable reiterating my expectations that our revenues in 2009 will be greater than those of 2008, especially as the recent changes made by the new management team come to fruition. We have a highly motivated management team, as well as a very strong and more than adequate cash position, exceeding $12 million with which to execute on our strategic plan.”
Conference Call
Mr. Ido Gur, President and CEO of VocalTec invites investors to participate in a conference call scheduled for later today, Monday, May 11, 2009. The conference call will be held at 9:00am 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. For more information, please visit http://www.vocaltec.com.