deltathree Inc., a global provider of Voice over Internet Protocol (VoIP) telephony services, products, hosted solutions and infrastructures for service providers, resellers and direct consumers, today posted its financial results for the first quarter ended March 31, 2010.
For the first quarter of 2010, the company reported total revenues of $3.1 million compared with $5.3 million reported for the first quarter of 2009. The company attributes the year-over-year decline in quarterly revenue mainly to the suspension of the operations of its largest reseller customer in the fourth quarter of 2009, as well as higher levels of revenue from service provider customers in the first quarter of 2009.
Deltathree posted first quarter 2010 GAAP net loss at $472,000, or $(0.01) per diluted share, compared to a GAAP net loss for the first quarter of 2009 of $441,000, or $(0.01) per diluted share. First quarter 2010 non-GAAP adjusted EBITDA (as defined below) loss was $236,000, or $(0.00) per diluted share, compared to a non-GAAP adjusted EBITDA loss of $119,000, or $(0.00) per diluted share, for the first quarter of 2009.
Effi Baruch, interim CEO and president, and senior vice president of Operations and Technology of deltathree, said the company is taking actions to increase operational structure and reduce costs while focusing on its international presence.
“Our first quarter 2010 results reflect our ongoing focus on improving deltathree’s bottom line profitability levels, as we reduced the sequential quarterly GAAP net loss by more than 58 percent compared to the fourth quarter of 2009 and the company’s adjusted EBTIDA loss by more than 81 percent over the same period,” Baruch stated in the press release. “Material improvements in establishing a more efficient operational structure, as well as more effectively scaling costs to current revenue levels, form a stronger foundation upon which to ramp our digital video and voice services as well as extend the international reach of our next generation communications offerings.”
As of March 31, 2010, deltathree held approximately $1.5 million in cash, cash equivalents, restricted cash and short-term investments, and had negative working capital equal to approximately $2.3 million and negative stockholders’ equity equal to approximately $1.8 million.
Baruch said rising demand for its products spurs confidence of the successful future of deltathree’s position in the video phone market.
“Looking ahead, we see solid opportunities for growth in the video phone market based on a rising demand for our video phone offerings as well as the continued successful rollout of our next generation digital video and voice solutions. During the first quarter we continued to increase the number of our video phone subscribers, building our service provider business in terms of providing digital video and voice services to consumers in the Asia Pacific region. With the current market for video phone services largely underpenetrated on a global basis, and with the widespread availability of quality high speed Internet access to global consumers and small businesses, we see a vast potential market to leverage our world-class international VoIP and video-over-IP network,” concluded Baruch.