NEW BRUNSWICK, N.J., May 8 /PRNewswire-FirstCall/ --
Arbinet-thexchange, Inc. (NASDAQ:ARBX) today reported financial
results for the first quarter ended March 31, 2008. First quarter
2008 fee revenues were $13.0 million, a 4.3% increase over fourth
quarter 2007 and 2.5% better than the first quarter of 2007. A
total of 3.49 billion minutes were bought and sold on Arbinet's
exchange in the first quarter 2008, compared to 3.62 billion
minutes in the first quarter 2007. Arbinet completed 452.8 million
calls during the first quarter 2008, compared to 441.7 million
calls in the first quarter 2007. First quarter 2008 trading revenue
and related costs each declined approximately $17.0 million or
13.2% compared to the same quarter in 2007, reflecting a reduction
in the number of minutes and a lower average trade rate of minutes
transacted through the platform. First quarter 2008 net loss from
continuing operations was ($38) thousand or ($0.00) per diluted
share, compared to a net loss from continuing operations of ($1.4)
million or ($0.06) per diluted share in the first quarter 2007. As
stated in the fourth quarter announcement, the Company is in the
process of divesting Broad Street Digital Limited, a license
management platform for intellectual property rights and digital
content distribution, and, accordingly, Broad Street's results of
operations and financial position were classified as discontinued
operations. William M. Freeman, President and Chief Executive
Officer of Arbinet, said, "We made great strides in what was
expected to be a transitional quarter for us as we laid the
groundwork for many of the new initiatives we will be launching in
the coming quarters. We gained new members each month and ended the
quarter with 1,045 members. In March, we also experienced the
highest revenue month since the Company's inception. We are pleased
with our performance to date and look forward to rolling out our
new products and services." Quarterly Conference Call Arbinet will
host a conference call to discuss its first quarter 2008 results at
5:00 p.m. Eastern Time today. The dial-in number for the live audio
call beginning at 5:00 p.m. Eastern Time is 888-562-3654, or
973-582- 2703 for international callers; the passcode is 45725033.
A live web cast of the conference call will be available on
Arbinet's web site at http://www.arbinet.com/. A replay of the call
will be available from 8:00 p.m. Eastern Time on Thursday, May 8,
2008 through midnight on May 22, 2008 at http://www.arbinet.com/
and by telephone at 800-642-1687, or 706-645-9291 for international
callers; the passcode is 45725033. About Arbinet Arbinet is a
leading provider of solutions to simplify the exchange of digital
communications in a converging world. The Company operates the
world's largest electronic market for trading, routing and settling
communications capacity. Through its managed service offerings,
Arbinet provides solutions to simplify the increased complexity of
routing calls across traditional and VoIP networks. Arbinet's 1,045
voice and data Members, including approximately 75% of the world's
40 largest communication service providers, use Arbinet's Internet
based electronic platforms to buy, sell, deliver and settle
transactions valued at about $500 million in 2008. These Members
include fixed, mobile and VoIP carriers, ISPs and content providers
from more than 60 countries who exchange voice, data, content and
value added services. For more information about Arbinet's
solutions visit http://www.arbinet.com/. Forward-Looking Statements
This press release contains forward-looking statements regarding
anticipated future revenues, growth, capital expenditures,
management's future expansion plans, expected product and service
developments or enhancements, and future operating results. Such
forward-looking statements may be identified by, among other
things, the use of forward-looking terminology such as: "believes,"
"expects," "may," "will," "should" or "anticipates," or the
negative thereof or other variations thereon or comparable
terminology, or by discussions of strategy that involve risks and
uncertainties. Various important risks and uncertainties may cause
Arbinet's actual results to differ materially from the results
indicated by these forward-looking statements, including, without
limitation: the ability of Arbinet to effectively divest Broad
Street Digital Limited; members (in particular, significant trading
members) not trading on our exchange or utilizing our new and
additional services (including DirectAxcess(SM),
PrivateExchange(SM), AssuredAxcess(SM) and PeeringSolutions(SM));
continued volatility in the volume and mix of trading activity; our
uncertain and long member enrollment cycle; the failure to manage
our credit risk; failure to manage our growth; pricing pressure;
investment in our management team and investments in our personnel;
regulatory uncertainty; system failures, human error and security
breaches that could cause Arbinet to lose members and expose it to
liability; and Arbinet's ability to obtain and enforce patent
protection for our methods and technologies. For a further list and
description of the risks and uncertainties the Company faces,
please refer to Part I, Item 1A of the Company's Annual Report on
Form 10-K, filed with the Securities and Exchange Commission on
March 17, 2008, and other filings that have been filed with the
Securities and Exchange Commission. Arbinet assumes no obligation
to update any forward-looking statements, whether as a result of
new information, future events or otherwise and such statements are
current only as of the date they are made. Contacts: Jack Wynne,
CFO Arbinet-thexchange, Inc. 732-509-9230 Andrea Priest / Andi
Salas Joele Frank, Wilkinson Brimmer Katcher 212-355-4449 ARBINET -
THEXCHANGE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS Three Months Ended March 31, 2007 2008 ($ in thousands,
except per share data) Trading revenues $129,520 $112,442 Fee
revenues 12,643 12,959 Total revenues 142,163 125,401 Cost of
trading revenues 129,561 112,470 12,602 12,931 Costs and expenses:
Operations and development 5,003 5,742 Sales and marketing 2,000
2,211 General and administrative 4,462 3,386 Depreciation and
amortization 2,053 1,830 Reserve for litigation 1,150 - Total costs
and expenses 14,668 13,169 (Loss) from operations (2,066) (238)
Interest income 792 418 Interest expense (331) (166) Other income
(expense), net 264 29 Income (loss) before income taxes (1,341) 43
Provision for income taxes 86 81 (Loss) from continuing operations
$(1,427) $(38) Discontinued operations: (Loss) from discontinued
operations, net of income tax of $0 in 2007 and $11 in 2008 (449)
(412) Net (loss) $(1,876) $(450) Net (loss) attributable to common
stockholders $(1,876) $(450) Basic net (loss) per share: Continuing
operations $(0.06) $- Discontinued operations $(0.02) $(0.02) Net
(loss) $(0.08) $(0.02) Diluted net (loss) per share: Continuing
operations - - Discontinued operations - - Net (loss) - - Dividends
declared per common stock share - $(0.40) Shares used in computing
basic net (loss) per share 25,430,319 24,918,630 Shares used in
computing diluted net (loss) per share 25,430,319 24,918,630 Other
comprehensive income: Cumulative unrealized loss in
available-for-sale securities (1) 13 Foreign currency translation
adjustment 6 11 Comprehensive (loss) $(1,871) $(426) ARBINET -
THEXCHANGE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of
As of December 31, March 31, 2007 2008 ($ in thousands, except per
share data) Assets Current Assets: Cash and cash equivalents
$28,383 $18,256 Marketable securities 20,344 12,574 Trade accounts
receivable, (net of allowance of $1,481 and $1,614 at December 31,
2007 and March 31, 2008, respectively) 28,416 31,042 Prepaids and
other current assets 2,362 4,022 Current assets of discontinued
operations 269 183 Total current assets 79,773 66,077 Property and
equipment, net 23,002 22,457 Security deposits 2,430 2,430
Intangible assets, net 2,018 1,946 Goodwill 2,196 2,193 Other
assets 75 55 Long term assets of discontinued operations 439 656
Total assets $109,934 $95,814 Liabilities & Stockholders'
Equity Current Liabilities: Capital lease obligations-current
portion $7 $2 Notes payable 493 75 Due to Silicon Valley Bank 285
653 Accounts payable 16,123 15,316 Deferred revenue 2,499 2,214
Accrued expenses and other current liabilities 8,250 7,400 Current
liabilities of discontinued operations 334 155 Total current
liabilities 27,991 25,815 Other long-term liabilities 2,282 1,892
Total liabilities 30,273 27,707 Stockholders' Equity Preferred
Stock, 5,000,000 shares authorized - - Common Stock, $0.001 par
value, 60,000,000 shares authorized, 26,355,641 and 26,570,562
shares issued and outstanding, respectively 26 27 Additional
paid-in-capital 181,644 172,286 Treasury Stock, 674,233 and 836,997
shares, respectively (4,613) (6,394) Accumulated other
comprehensive loss (455) (431) Accumulated deficit (96,941)
(97,381) Total Stockholders' Equity 79,661 68,107 Total Liabilities
& Stockholders' Equity $109,934 $95,814 DATASOURCE:
Arbinet-thexchange, Inc. CONTACT: Jack Wynne, CFO,
Arbinet-thexchange, Inc., +1-732-509-9230; or Andrea Priest, or
Andi Salas, Joele Frank, Wilkinson Brimmer Katcher, +1-212-355-4449
Web site: http://www.arbinet.com/
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