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September 25, 2008

deltathree Focusing on VoIP Hosted Communications Market

By Tim Gray, TMCnet Web Editor

As the United States continues its tumultuous economic ride more and more companies are looking for communications platforms that will help ease the bottom line.
And one particular cost savings measure that seems to be on the uptick is moving toward Voice over Internet Protocol (VoIP) hosted communications solutions.

New York-based deltathree (News - Alert), a leading provider of Voice over Internet Protocol (VoIP) hosted communications solutions for resellers, end-users and service providers worldwide, has seen a stabilization in business as of late, while restructuring its efforts to maximize this growing segment.
deltathree's PC Phone allows consumers to make and receive calls at any time on any computer around the world. The Reseller Program offers deltathree's award-winning turnkey VoIP Phone solutions to call shops, Internet cafes, Internet service providers, and local PC to Phone software or hardware distributors around the world.
In fact, earlier this summer, deltathree announced financial results for the second quarter 2008 that reported total revenues of $5.4 million compared to $5.4 million in the first quarter 2008 and $7.6 million in the second quarter 2007.

This stabilization of revenues in the sequential comparison reflects the company's focus on its core VoIP reseller business as well as its enhanced focus on select international markets within its global platform for delivering VoIP services. Gross margin for the second quarter 2008 was 25 percent, down modestly from 27 percent in the year ago period, said Dror Gonen, chief executive officer and president of deltathree.
"Our second quarter 2008 results reflect some signs of stabilization in terms of sequential revenue as the business realignment we are implementing gained traction and the effects began to flow through to our financial performance,” said Gonen.
Following a comprehensive review of the company's strategy initiated by the Board of Directors, at the company is refocusing its near-term strategy and market initiatives around our core VoIP reseller business, with an additional enhanced focus on key higher growth international markets such as the Middle East, Africa, Asia and Latin America.

”Accordingly, to support this strategy, we are restructuring our sales force to emphasize local sales representatives in the select international markets in which we are looking to increase our VoIP reseller market penetration,” said Gonen.
Looking forward, said Gonen, the company is continuing to develop and deploy enhanced VoIP applications, such as enhanced call-back solutions, for the global reseller market based on the direct feedback and perspectives from our reseller customer's specific needs.

”We are also engaged in an ongoing analysis of our cost structure to help drive additional operating efficiencies company-wide with the aim of reducing our quarterly cash utilization,” said Gonen.  “Overall, I believe we are aligning deltathree to address some of the more attractive segments of the global VoIP market to help drive top line revenue growth while making the difficult, but necessary, changes on the cost structure side to reorient the company towards our goals of positive operating cash flows in the near-term and bottom line profitability in the long-term.”
INTERNET TELEPHONY Conference & EXPO West 2008 — the biggest and most comprehensive IP communications event of the year — concluded September 18th in Los Angeles, California. Thousands of attendees flocked to the event for three valuable days of exhibits, conferences and networking opportunities. Mark your calendar now for ITEXPO East 2009, February 2-4, 2009, in sunny Miami, Florida.
Read archived editions of Show Daily eNewsletters from ITEXPO (News - Alert) West 2008 here. See you in February!

Tim Gray is a Web Editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Tim�s articles, please visit his columnist page.

Edited by Tim Gray

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