Net2Phone tops 2Q forecasts

Net2Phone (Nasdaq: NTOP) edged past analyst estimates in the second quarter.

After market close Wednesday, the Internet telephony provider reported a fiscal second quarter loss of $8.7 million, or 17 cents per share, excluding charges related to stock options. First Call's survey of seven analysts predicted a loss of 18 cents per share for the quarter ended Jan. 31.

Second quarter revenue increased to $15.5 million, up 107 percent year-over-year and an 18 percent gain sequentially. Gross margins were 46 percent, compared to 48 percent in the first quarter and 47 percent a year ago.

During the second quarter, Net2Phone recorded $1.1 million in depreciation and amortization, and took a $4.4 million charge related to stock options issued.

Total minutes of use for Net2Phone in the second quarter rose 94 percent year-over-year, to 103 million minutes from 53 million. The company's active customer grew to 575,000, a 47 percent improvement from 390,l000 inthe first quarter.

Shares of Net2Phone fell 1 3/4 to 56 1/8 in Wednesday's regular trading prior to the quarterly report. Among six analysts polled by Zack's Investment Research, five rate Net2Phone the equivalent of a "moderate buy" and one recommends the stock with a "strong buy" rating.>