Free Newsletter
deltathree posts dismal Q2 results
Deltathree's second quarter financial report brought more bad news for the beleaguered VoIP reseller Thursday. Despite laying off two-thirds of its staff and subleasing its New York offices in the past six months, the company's net loss for the quarter is double that of the same quarter last year.
A prepared statement accompanying the financial report contained some of the worst news an investor could hear, "At this time the company's management is unable to determine if the company has sufficient funds to continue its current operations over the foreseeable future if it does not receive additional financing."
While deltathree has managed to trim operating costs by around 10 percent, its revenues are down more than 30 percent quarter to quarter.
It doesn't take a math major to see that this is not a sustainable margin for the struggling company, but CEO Dror Gonen still tried to paint a rosier picture of the future,"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."
For more:
- Access the full deltathree financial report here.
Related Articles:
Deltathree to power Panasonic Globarange
SPOTLIGHT: SPIRIT to power Joip
Comments
Posted by Anonymous | August 16, 2008 - 11:21am
I wonder how exactly they intend to sell more when they have kept only one sales person in the Jerusalem Headquarters, responsible for all the word but the Americas. One person doing the job done previously by 4 sales managers (Africa, Asia, Arab countries and rest of the world Sales Managers have been fired). Can anybody believe that with 25-30 people the company will not close by the end of the year?
Posted by Anonymous | August 16, 2008 - 11:27am
Most of the engineers have been fired, and only 2 remain!! The 24/7 ops room, supposed to provide service to resellers, is barely manned. The CEO is only trying to look like all is OK, probably to sell the company for some millions, when its value barely reaches some dozens of thousands of $.
Posted by Anonymous | August 18, 2008 - 11:38pm
All the above is semi correct...
BUT - the company is about to rise. There are a few changes and investments going to apply in, and as far as I know the staff is optimistic.
I wouldn't mourn on deltathree before time. It still has the ability to come back to it's old good days..
Posted by Anonymous | August 19, 2008 - 9:47am
What can a CEO with less than 6 months total experience in the VoIP industry and a VP responsible for global sales with even less experience do to salvage this business?
Shimmy Zimmels sealed the fate of this company well before his departure. Anyone who could have saved deltathree on the tech or business side either left or was fired. If you own stock and are religious, it's a good time to start parying... hard.
Posted by Anonymous | August 19, 2008 - 5:25pm
3-
"investments in mobile tech, won't do the thing.
they should have thought about it a few years ago...
SHARE
WITH:
Comments (5) | Post a comment