RealTime IT News

iBasis Disconnects Messaging Unit

iBasis , a Burlington, Mass., will sell its messaging business to fellow communications service provider Call Sciences, of Edison, N.J. Financial terms were not disclosed.

The deal includes iBasis' Santa Clara, Calif., data center and the VoCore product line which provides phone access to e-mail, voice mail, fax mail, calendars and contact lists.

"Ultimately, we decided that our drive to profitability will be better served by focusing our resources on our rapidly growing Internet telephony line of business and our speech solutions business," Ofer Gneezy, iBasis' president and CEO.

Gneezy thanked employees for their work in enhancing the VoCore platform over the last year.

"This is an outstanding service with a blue chip customer base that enhances our existing unified communications services business," said Mike McCoy, Call Sciences' president and CEO. "The addition of more than 700,000 users will enhance our ability to continue our market leading position."

In other iBasis news, the company posted a net loss, before items, of $26.2 million, or 59 cents per share, compared to a net loss of $20.3 million, or 59 cents per share, for the same period a year ago. Analysts polled by First Call expected a loss of 60 cents per share in the most recent quarter.

Fourth quarter revenue was $39.1 million, up nearly 90 percent over fourth quarter 2000 revenue of $20.7 million.

"We improved (earnings before taxes and other items) and lowered our operating costs while growing the business dramatically.," Gneezy said. "This was accomplished through the completion of network automation projects, which enhanced the efficiency of our operations, and by growing overseas-originated traffic, particularly in Europe."

Shares of IBAS were off 0.02 to 1.21 in early trading. In the last 52 weeks, the issue has ranged from 0.26 to 7.