In the first quarter, net.com announced its new CO (Central Office)-ready SCREAM Service Creation Manager platforms that were designed from the ground up for carrier-class density, scalability and economics, and began trials of the new products in Europe, Asia and North America.
Total revenue for the first quarter was $23.9 million, compared to $43.4 million for the same period last year. The company reported a net loss of $13.8 million, or $0.63 per share, compared to net loss of $6.7 million, or $0.31 per share for the first quarter of fiscal 2001. Results for the first quarter include a gain of $2.5 million, or $0.11 per share in Other Income by meeting the conditions required for additional consideration in the divestiture of our Federal professional services business to CACI.
In addition to the launch of net.com’s new SCREAM 50 and 100 Service Creation Manager products at Supercomm in June, highlights for the quarter included third party demonstration of the strength of the OPI (Open Programming Interfaces) on the SCREAM platforms. The OPI allows for easy integration of new platforms, processes and services into a carrier’s existing operational and business support systems and is available by request from net.com’s website. Idea Integration developed interfaces for Portal’s billing software in a project typical of a carrier’s requirements, and noted it was one of the easiest integration projects Idea Integration has ever managed. net.com also announced a business and marketing relationship with Elron Telesoft to deliver service creation out of the box with Elron’s IP service management software.
Additionally, the company saw sales of its ShoutIP platform in Japan for a unique, wireless web messaging service. The customer, BellNet, reported a successful debut of its Web Content Service for J-phone, the mobile company in Japan shared by Vodaphone. net.com also introduced support for SIP and H.323 protocols for the IP telephony product line to support multi-network VoIP (voice over IP) interoperability.
Bert Whyte, net.com’s president and CEO noted, We believe current market conditions validate the need for service providers to shift their focus from network growth to network profitability, and they must find ways of generating revenue from new value-added services. At the same time, they must achieve better economics from their existing infrastructure. We remain convinced that the SCREAM service creation platforms that we began work on two years ago provide a potentially compelling solution for delivering this model.
At the same time we accelerate our marketing and sales efforts for our new service creation platforms, our enterprise centric narrowband business continues to demonstrate remarkable resiliency, particularly in the Federal marketplace.
Whyte concluded, We remain very optimistic about the future and believe we will demonstrate traction on our new products over the next several quarters with additional trials, significant partnerships, and early sales. The uncertainty in the industry continues to be a challenge for our entire sector, but we believe service providers will begin to spend first on those investments that will net them greater profitability, and we will be ready with the solution they need.
SOURCE: COMPANY PRESS RELEASE
