New ETF Book by Larry Connors - Click here to read more
Third quarter 2009 fee revenues were $8.1 million, a 7% decrease from the second quarter 2009 and a 31% decrease from the third quarter 2008. A total of 2.5 billion minutes were bought and sold on Arbinet's platform in the third quarter 2009, compared with 3.1 billion minutes in the third quarter 2008. Arbinet completed 280 million calls during the third quarter 2009, compared with 401 million calls in the third quarter 2008. The average call duration of calls completed during the third quarter 2009 was 4.5 minutes per call, compared with 3.9 minutes per call in the third quarter 2008.
The Company's net loss from continuing operations in the third quarter 2009 was ($3.7) million, or ($0.17) per diluted share, compared with net loss from continuing operations of ($4.1) million, or ($0.18) per diluted share in the third quarter 2008. Third quarter 2009 results include a non-cash foreign currency transaction loss of $685,000.
In commenting on the Company's third quarter results, Shawn O'Donnell, President and Chief Executive Officer of Arbinet stated, "Over the past year, our focus has been on right-sizing our cost structure, focusing on our international long distance business, expanding our product offerings to leverage our core competencies, and enhancing the quality of the exchange. We are pleased that we continue to maintain high call quality as measured by average call duration. We have also substantially completed the restructuring of our sales force and continue to focus on training the sales force as we roll out new services. We are encouraged by the response received from our customers on our exciting new product offerings, and we will continue to evaluate and develop new services in the coming quarters.
"Despite the ongoing challenging market conditions and the traditional weakness of the third quarter for our industry, we are confident that the decisions we have made and the actions we are taking will position Arbinet for success as the global economy improves and will create long term value for our shareholders."
As part of its cost savings initiatives, Arbinet also announced plans to relocate its corporate headquarters to an existing operations center in Herndon, Virginia where 52 of its employees are already located. The transition of the 17 employees and the closing of the New Jersey facility is expected to be completed in the fourth quarter of this year. An additional 22 sales and sales support employees have already been moved from the headquarters site to New York City.
Quarterly Conference Call
Arbinet will host a conference call to discuss its third quarter 2009 results at 10:00 A.M. Eastern Time today.
The dial-in number for the live audio call beginning at 10:00 A.M. Eastern Time is 888-562-3654, or 973- 582-2703 for international callers; the passcode is 38913268. A live web cast of the conference call will be available on Arbinet's web site at http://www.arbinet.com.
A replay of the call will be available from 1:00 P.M. Eastern Time on November 5, 2009 through midnight Eastern Time on November 12, 2009 at http://www.arbinet.com and by telephone at 800-642-1687, or 706- 645-9291 for international callers; the passcode is 38913268.
About Arbinet Corporation
Arbinet is a leading provider of international voice and IP solutions to carriers and service providers globally. With more than 1100 carriers across the world utilizing the Arbinet network, Arbinet combines global scale with sophisticated platform intelligence, call routing and industry leading credit management and settlement capabilities. Customers and suppliers include many leading fixed line, mobile, wholesale and VoIP carriers as well as calling card, ISPs and content providers around the world who buy and sell voice and IP telecommunications capacity and content. The Company can be reached at its corporate headquarters in New Brunswick, NJ at +1.732.509.9100 or by email at sales@arbinet.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding anticipated future revenues, growth, capital expenditures, management's future expansion plans, expected product and service developments or enhancements, and future operating results. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as: "believes," "expects," "intends," "may," "will," "should," "seeks," "confident," or "anticipates," or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. Various important risks and uncertainties may cause our actual results to differ materially from the results indicated by these forward-looking statements, including, without limitation: members (in particular, significant trading members) not trading on our exchange or utilizing our new and additional services; continued volatility in the volume and mix of trading activity; our uncertain and long member enrollment cycle; the failure to manage our credit risk; failure to manage our new wholesale offerings; pricing pressure; investment in our management team and investments in our personnel; disruption or uncertainty resulting from recent changes in senior management; regulatory uncertainty; system failures, human error and security breaches that could cause us to lose members and expose us to liability; our ability to obtain and enforce patent protection for our methods and technologies; losses in efficiency due to cost cutting and restructuring initiatives; decreased trading volumes due to our efforts to increase call quality on our exchange; and economic conditions and volatility of financial markets, decreased availability of credit to us or buyers on our exchange, and the impact they may have on us and our members. For a further list and description of the risks and uncertainties we face, please refer to Part I, Item 1A of the Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 16, 2009, and other filings that have been filed with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise and such statements are current only as of the date they are made.
ARBINET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2009 2008 2009
---- ---- ---- ----
Trading revenues $94,956 $75,862 $330,400 $231,019
Fee revenues 11,702 8,080 38,003 26,001
------ ----- ------ ------
Total
revenues 106,658 83,942 368,403 257,020
Cost of trading
revenues 95,112 75,810 330,696 231,170
Indirect cost of
trading and fee
revenues 4,840 4,355 15,258 13,843
----- ----- ------ ------
Total cost of
trading and
fee revenues 99,952 80,165 345,954 245,013
Gross Profit 6,706 3,777 22,449 12,007
Cost and expenses:
Sales and
marketing 2,409 1,997 8,200 5,659
General and
administrative 2,162 2,476 8,292 7,513
Depreciation and
amortization 1,921 1,788 5,637 5,400
Severance
charges 1,277 361 1,277 361
Impairment
charges 476 - 476 -
--- --- --- ---
Total
operating
expenses 8,245 6,622 23,882 18,933
Loss from
operations (1,539) (2,845) (1,433) (6,926)
Interest income 181 20 823 107
Interest expense (134) (197) (443) (520)
Foreign currency
transaction gain
(loss) (2,372) (685) (2,360) 2,081
Other income
(expense), net 94 66 178 237
-- -- --- ---
Loss from
continuing
operations
before income
taxes (3,770) (3,641) (3,235) (5,021)
Provision for
income taxes 331 59 511 197
--- -- --- ---
Loss from
continuing
operations (4,101) (3,700) (3,746) (5,218)
Discontinued operations:
Loss from
discontinued
operations (673) - (2,129) -
---- --- ------ ---
Net loss $(4,774) $(3,700) $(5,875) $(5,218)
======= ======= ======= =======
Basic net loss per share:
Continuing
operations $(0.18) $(0.17) $(0.15) $(0.24)
Discontinued
operations (0.03) - (0.09) -
----- --- ----- ---
Net loss $(0.21) $(0.17) $(0.24) $(0.24)
====== ====== ====== ======
Diluted net
loss per share:
Continuing
operations $(0.18) $(0.17) $(0.15) $(0.24)
Discontinued
operations (0.03) - (0.09) -
----- --- ----- ---
Net loss $(0.21) $(0.17) $(0.24) $(0.24)
====== ====== ====== ======
Dividends declared
per common share $- $- $0.40 $-
== == ===== ==
Weighted average
shares used in
computing
basic net loss
per share 23,067,698 21,650,782 24,314,886 21,775,704
========== ========== ========== ==========
Weighted average
shares used in
computing diluted
net loss
per share 23,067,698 21,650,782 24,314,886 21,775,704
========== ========== ========== ==========
Other
comprehensive
income:
Net loss $(4,774) $(3,700) $(5,875) $(5,218)
Cumulative
unrealized gain
(loss) in
available-for-
sale
securities (52) - (60) (2)
Foreign currency
translation
adjustment 1,274 462 1,275 (1,340)
----- --- ----- ------
Comprehensive loss $(3,552) $(3,238) $(4,660) $(6,560)
======= ======= ======= =======
ARBINET CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands, except share data)
(Unaudited)
December 31, September 30,
2008 2009
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $16,224 $18,345
Marketable securities 7,926 6,264
Trade accounts
receivable (net
of allowance of
$2,071 and
$2,546) 28,176 19,920
Prepaids and other current assets 3,476 1,777
----- -----
Total current assets 55,802 46,306
Property and equipment, net 20,868 18,471
Security deposits 2,130 1,678
Intangible assets, net 163 155
Other assets 395 323
--- ---
Total Assets $79,358 $66,933
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Due to Silicon Valley Bank $371 $965
Accounts payable 12,924 8,258
Deferred revenue 2,770 1,680
Accrued and other current
liabilities 7,552 6,744
Current liabilities of discontinued
operations 473 100
--- ---
Total current liabilities 24,090 17,747
Long-term debt 3,600 3,600
Deferred rent 1,862 2,004
Other long-term liabilities 61 65
-- --
Total liabilities 29,613 23,416
------ ------
Commitments and Contingencies
Stockholders' Equity:
Preferred
Stock,
5,000,000
shares
authorized - -
Common Stock, $0.001 par
value, 60,000,000 shares
authorized, 26,538,245
and 26,699,413 shares
issued
and outstanding 27 27
Additional paid-in-capital 173,867 175,423
Treasury
stock,
3,988,819
and
4,697,553
shares (15,852) (17,076)
Accumulated other comprehensive income 3,576 2,234
Accumulated deficit (111,873) (117,091)
-------- --------
Total Stockholders' Equity 49,745 43,517
------ ------
Total Liabilities and
Stockholders' Equity $79,358 $66,933
======= =======
Contacts:
Gary Brandt
Arbinet Corporation
732-509-9100
Andrea Priest / Andi Salas
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
SOURCE Arbinet Corporation
http://www.arbinet.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.