Net2Phone shares fall following earnings report

Shares in the Net telephone service provider fall almost 7 percent after the company reported a wider fiscal fourth-quarter loss.

HACKENSACK, New Jersey--Net2Phone shares fell 6.9 percent after the Internet telephone service provider reported a wider fiscal fourth-quarter loss.

Net2Phone shares fell 4.13 to 55.75. The company reported earnings yesterday after markets closed. President Jonathan Fram declined to comment on the stock activity, citing company policy.

Hackensack, New Jersey-based Net2Phone, which is 57-percent owned by telecommunications company IDT, said its loss in the quarter ended July 31 was $3.9 million, or 10 cents a share, compared with $2.87 million, or 9 cents, in the year-earlier period.

Sales rose to $11.1 million from $4.1 million. Fram said the company is focusing on increasing sales, gaining new customers, and building brand recognition on the Internet.

"I think the analysts have us making a profit in a few years and I think we have a couple of years ahead of us of brand building and focusing on revenue growth," he said.

The company's net loss was $18.4 million, or 47 cents per share, after a one-time non-cash expense of $14.8 million for stock options issued to employees, Net2Phone said. The earnings figures reflect the conversion of preferred shares to common stock as part of its initial public offering, completed in August.

Copyright 1999, Bloomberg L.P. All Rights Reserved.

Featured Video