Internet telephony software developer e-Net Inc. (Nasdaq: ETEL) shares soared up 3 3/4, or 125 percent, to 6 3/4 Wednesday after teaming up with IXC Communications to provide long-distance calling service over the Internet.
Under terms of the two-year pact, IXC and e-Net will jointly develop and market e-Net's ZeroPlus.com's Internet telephony service. IXC will provide e-Net with access to its Gemini2000 network, co-location facilities, and network, marketing and sales support.
e-Net will contribute its ZeroPlus.com Internet telephony software to enable calls from PC-to-phone, PC-to-PC and phone-to-PC. e-Net also plans to develop fee-based enhanced services such as call- forwarding, voicemail and unified messaging.
"This alliance will enable a communications system for the next millennium," said John Stritzinger, IXC's director of CPE and voice telephony.
The deal calls for IXC and ZeroPlus.com to jointly develop the necessary components of the Voice over IP solution and to share in revenues. It also allows IXC to acquire up to 19.9 percent of e-Net's outstanding shares.
IXC shares were off 11/16 to 32 1/4.
In its latest quarter, e-Net reported a loss of $3.5 million, or 43 cents a share, on sales of $157,000.
e-Net shares peaked at 8 in December after falling to a low of 1 7/8 in October.>