Ibasis Q4 Earnings Transcript

I was reading through the Ibasis earnings transcript today and two things caught my eye:

1) Their phone card business, like everyone else's is declining rapidly: "Our retail business consist of our retail prepaid calling card business and our Pingo eCommerce business. Revenue from our retail business in Q4 was $24.8 million compared to $32 million in Q3." They try and spin it and claim it to be the result of the cleaning up of the prepaid business... they offer clean cards now and others don't putting them at an unfair playing field.

2) Ofer Gneezy said that they anticipate 2008 to be a big year: "We said we believe 2008 will a pivotal year in the evolution of iBasis and perhaps in the evolution of the international voice business over all. " and also later goes on to say: "In addition, we believe that with our scale efficiency and focus on international voice, iBasis is perhaps uniquely positioned to lead the consolidation of this segment of the Global Telecommunications Industry." Is there something in the works here? We know they just merged with KPN but the statement above raises questions like will they be pursuing other company acquistions as well? Consolidation in the telecom business is already underway but it would suprise me if Ibasis had enough capital to be the one doing the aquiring ...

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