From CNET. Ailing calling-card business hurts Net2Phone. The Internet telephone company’s first-quarter revenue drops partly because of its quicker-than-expected exit from an unprofitable calling-card business.
Not unexpected. The tables below are created from their financials. This one shows their mix from 2002 to 2003. The calling card business cratered, true. But so did the wholesale long distance and international long distance businesses. Nothing about Net2Phone, despite their recent $65MM capital round, is healthy.
The most interesting thing is that these guys have never made a penny in their entire existance, yet they still get funded. The tables below show that in 2001 / 2002 they lost a staggering $612 million. In 2003, they made $17 million, after a $58 million settlement with Cisco pushed them into the black. Why do people keep throwing money at them?
|Costs and expenses:|
|Direct cost of revenue (exclusive of items shown below)||108,411||78,502||52,820|
|Selling, general and administrative||168,003||116,570||53,728|
|Depreciation and amortization||23,349||23,980||11,037|
|Restructuring, severance, impairment and other items||70,101||141,619||7,363|
|Settlement of Cisco litigation||–||1,572||– 58,034|
|Acquired in-process research and development||–||13,850||–|
|Total costs and expenses||390,409||395,649||82,218|
|Income (loss) from operations||– 240,210||– 257,794||9,532|
|Interest income, net||18,531||4,162||2,021|
|Income (loss) on equity investments and other expense, net||– 146,973||– 7,887||696|
|Income (loss) before minority interests||– 368,652||– 261,519||12,249|
|Net income (loss)||– 365,976||– 245,928||16,795|
|Redeemable common stock accretion||– 532||– 133||–|
|Net income (loss) available to common stockholders||– 366,508||– 246,061||16,795|