iBasis reached the milestone of profitability in Q1 2005. Net revenue for Q1 was $88.7 million, compared to revenue of $57.0 million in the first quarter of 2004. Net income was $0.2 million, or $0.00 per share compared to first quarter 2004 net loss of $9.3 million, or $(0.21) per share.
"We reached a tremendous milestone in becoming profitable and generating positive cash flow in Q1," said Ofer Gneezy, president and CEO of iBasis. "We are leveraging our global VoIP network and back office systems to generate growth in both our wholesale trading business and in our retail prepaid calling business. Today, both of these growth engines are firing on all cylinders. "
Some highlights for the quarter:
- Minutes of use on The iBasis Network in the first quarter rose to 1.8 billion minutes, a 72% increase over the 1.0 billion minutes carried in the first quarter 2004, and a 17% sequential increase over the 1.5 billion minutes in the fourth quarter of 2004.
- Average revenue per minute was 5.0 cents per minute in the first quarter of 2005, unchanged from Q4 2004. Average revenue per minute is based on our reported net revenue divided by the minutes of traffic for the applicable period.
- Overseas-originated calls accounted for 47% of revenue in the first quarter of 2005, compared to 43% in the fourth quarter 2004. iBasis ended the first quarter with 309 wholesale trading customers, up from 263 at the end of Q1 2004 and up from 290 at the end of the fourth quarter 2004.
- During the quarter the company announced two new products: PremiumCertified international routing and DirectVoIP Broadband. PremiumCertified is designed for retail traffic and features more than 700 routes that have been certified by iBasis as meeting or exceeding the company's Retail Quality Index for stable call completion and quality. DirectVoIP Broadband provides fast and secure IP interconnections to The iBasis Network and meets the specific technical requirements of providers of consumer VoIP or voice over broadband services.
- iBasis was founded in 1996. iBasis carried approximately five billion minutes of international VoIP traffic in 2004, and is one of the ten largest carriers of international voice traffic in the world.
