Net2Phone hurdles estimates in first quarter

2 min read

Net2Phone topped analysts’ estimates in its first quarter Tuesday but it still posted a loss of $14.7 million, or 25 cents a share, on sales of $30.8 million.

First Call Corp. consensus expected the Internet telephony firm to lose 30 cents a share in the quarter.

Net2Phone (Nasdaq: NTOP) shares closed off $1.38 to a 52-week low of $9.75 ahead of the earnings report.

The $30.8 million in sales represents a 135 percent improvement from the year-ago quarter when it lost $5.4 million, or 11 cents a share, on sales of $13.1 million.

“This quarter's results indicate that Net2Phone's business is healthy and growing,” said CEO Howie Balter in a prepared release. “Our business model is strong, our margins are strong, and both revenues and minutes continue to increase.”

Gross profit margins in the quarter fell to 39 percent compared to 41 percent in the fourth quarter and 48 percent in the year-ago period.

In the quarter, its total paid minutes of use grew to 214 million minutes, up 151 percent from the year-ago quarter and up 28 percent from the fourth quarter.

Its customer base grew to 1.8 million users, up 50 percent from 1.2 million last quarter.

Last quarter, Net2Phone topped analysts’ estimates when it posted a loss of $15.9 million, or 29 cents a share, on sales of $24.9 million.

All six analysts covering the stock rate it a “buy.”

The stock peaked at $70.38 last December.

First Call Corp. consensus expects it to lose $1.15 a share in the fiscal year.