Message #50 From:
Stock News Bot Date: November 10, 2006 04:00:00 AM
IBAS News iBasis Announces Date For Selected Third Quarter 2006 Financial Results Release; Announces Delay In 10-Q Filing
BURLINGTON, Mass.--(BUSINESS WIRE)--iBasis (NASDAQ: IBAS), the global VoIP company, today announced that it
will report selected third quarter 2006 financial results on Tuesday,
November 14, 2006, before the opening of the stock market. The Company
will host a conference call to discuss the results, led by Ofer Gneezy,
its President and CEO, on that same day at 11:00 a.m. EST. This call
will be webcast by Thomson/CCBN. The public is invited to listen to the
simultaneous webcast by logging in through the iBasis investor relations
website at http://investor.ibasis.com.
The webcast is also being distributed through the Thomson StreetEvents
Network to both institutional and individual investors. Individual
investors can listen to the call at www.fulldisclosure.com,
Thomson/CCBN's individual investor portal, powered by StreetEvents.
Institutional investors can access the call via Thomson's
password-protected event management site, StreetEvents (www.streetevents.com).
As previously announced, a Special Committee of independent directors
appointed by the Board of Directors of the Company has conducted an
internal investigation relating to stock options granted to the
employees of the Company, the timing of such grants and their related
accounting and tax treatment. On October 20, 2006, the Company disclosed
that the Special Committee had concluded that the appropriate
measurement dates for determining the accounting treatment of certain
stock option grants differ from the measurement dates used by the
Company in preparing its financial statements. As a result, the Company
currently expects to record additional non-cash charges in the range of
$10 million to $20 million for stock-based compensation over the period
from December 1999 through April 2006 and will accordingly restate its
financial statements for that period. The Company has not yet completed
its review of the amount to be recorded in any specific period, nor has
the Company determined the tax consequences and any related liabilities
that may result from these matters. The amounts to be recorded are
subject to review and audit by the Company’s
independent registered public accounting firm.
As a result of the foregoing, the Company was unable to file its
quarterly report on Form 10-Q for the quarter ended September 30, 2006
by the required filing date of November 9, 2006. The Company will not
seek a 5-day extension for filing its quarterly report because it does
not expect that it will be able to file the report by the end of the
extension period. Once the Company finalizes its financial statements
with respect to its stock-based compensation charges, it will release
full financial results for the third quarter ended September 30, 2006.
The Company is focused on resolving these issues as quickly as possible
and plans to file its restated financial statements and its Form 10-Q
for the quarter ended September 30, 2006 as soon as practicable.
About iBasis
Founded in 1996, iBasis (NASDAQ: IBAS) is a leading wholesale carrier of
international long distance telephone calls and a provider of retail
prepaid calling services, including the Pingo®
web-based offering (www.pingo.com)
and disposable calling cards that are sold through major distributors
and available at retail stores throughout the U.S. iBasis customers
include many of the largest telecommunications carriers, including AT&T,
Verizon, China Mobile, China Unicom, IDT, Qwest, Skype, Telecom Italia,
and Telefonica. iBasis carried 7.8 billion minutes of international
voice over IP (VoIP) traffic in 2005, and is one of the largest carriers
of international voice traffic in the world1.
For four consecutive years service providers have named iBasis the best
international wholesale carrier in ATLANTIC-ACM’s
annual International Wholesale Carrier Report Card2.
The Company can be reached at its worldwide headquarters in Burlington,
Massachusetts, USA at 781-505-7500 or on the Internet at www.ibasis.com.
Safe Harbor Statement
Except for historical information, all of the expectations, plans and
assumptions contained in the foregoing press release, including
statements regarding the Company’s review of
its stock option grant practices and related accounting, the Company’s
expected restatement of certain of its historical financial statements
as well as the Company’s plan to request a
hearing before the NASDAQ Listing Qualifications Panel, constitute
forward-looking statements under Section 21E of the Securities Exchange
Act of 1934 and involve risks and uncertainties. Important factors that
could cause actual results to differ materially from such
forward-looking statements include, but are not limited to the
following: the possibility that the review of the Company’s
stock option grant practices may expand in scope and/or result in
additional charges; unanticipated consequences of any restatement; the
risk that the anticipated accounting adjustments and other factors
described above could have negative tax or other implications for the
Company, including additional tax liabilities; the risk that the Company’s
internal control over financial reporting and disclosure controls and
procedures are not, and have not been, effective; the risk that the
Company will be unable to comply with its SEC filing obligations in a
timely manner; the risk that the Nasdaq Stock Market will delist the
Company’s common stock; the risk that the
Company will face additional claims and proceedings in connection with
its stock option grant practices, including additional shareholder
litigation and more formal proceedings by the SEC or other governmental
agencies; and the financial impact of the foregoing, including
potentially significant litigation defense costs and claims for
indemnification and advancement of expenses by directors, officers and
others. The Company undertakes no obligation to update information
contained in this release. For further information regarding risks and
uncertainties associated with the Company’s
business, please refer to the Company’s
filings with the Securities and Exchange Commission.
iBasis and Pingo are registered marks; the global VoIP company and The
iBasis Network are trademarks of iBasis, Inc. All other trademarks are
the property of their respective owners.
1 Telegeography 2006 data compared with iBasis
2005 traffic volume.
