Teleglobe Reports Q2 Results, Following ITXC Acquisition

Teleglobe reported Q2 revenue of $230.7 million versus $214.5 million in Q1 2004 and $200.8 million in Q2 2003. Net loss for Q2 2004 was $5.1 million versus net income of $2.5 million in the Q1 2004 and a loss of $0.8 million in Q2 2003. The results include only one month of ITXC Corp., as the merger and related transactions were consummated on May 31, 2004.



"Second quarter 2004 results were as expected overall, with volumes posting solid increases from prior periods in our value added services and data transport businesses. Higher margin value added services sales in particular were strong in the quarter. Our voice business was affected in the quarter by the disruption from the ITXC purchase and sales and traffic management integration. However, current trends in our voice business are strengthening now that the fully integrated sales force and traffic management group are operational," said Liam Strong, president and CEO of Teleglobe. http://www.teleglobe.com