Ibasis Posts 2nd Quarter 09 Earnings - Not Too Bad!

Ibasis released their Q2 earning numbers yesterday and addressed their shareholders. Overall their revenues were down over last quarter coming in at $241.3 million down from $255.5 million in the previous quarter. However, the good news is that they have managed to significantly reduce their operating expenses through vigorous operational efficiency programs and a salary freeze that they implemented earlier in the year. Total operating expenses in this quarter were $21.8 million down from $22.7 million in the previous quarter. They also had significant gains in net Cash available from the first quarter leading to a somewhat more optimistic view by many shareholders.

As for their phone card division, which includes their disposable bodega cards and their e commerce business pingo.com, they stated that they had experienced a 9% growth in revenue and a 12% increase in gross margin (their 4th consecutive quarter with growth in this area). In the second quarter for retail, "gross profit was $31.8 million or 13.2% of revenue compared to gross profit of $37.5 million or 10.4% of revenue in the second quarter of 2008 and $31 million or 12.1% of revenue in the first quarter of 2009 (Seeking-Alpha)."

Overall it looks like Ibasis is keeping pace in this difficult economy and putting a much greater emphasis into generating their own minutes via phone cards as evidenced in their phone card growth numbers.