by Waheed Hassan, CFA
July 21, 2004
VOIP Inc.: OTC BB “VOII.OB”
Rating: SPECULATIVE BUY
12 month Target Price: $3.93/share
Financial Summary US$ ’000 2004E 2005E
52-Week Range $0.80-$6.75 Revenue 24,994 103,704
Recent Price (07/20/04) $2.75 Gross Profit 6,402 28,383
Market Cap $50.7
Current Shares Outstanding, mn 18.44 Operating Income 5,022 19,463
Float (mn) 1.7 Pre-tax Income 5,022 19,463
Avg. Daily Trading Volume (3m) 6,113 Net Income 3,265 12,651
Fiscal Year-End 31-Dec
Current Book Value (per share) $0.005
Employees 23 EPS $0.16 $0.63
Next reporting date 08/15/04 P/E 17.25 4.34
Source: Finance Yahoo, SEC filings, Analyst Estimates
VoIP, Inc. (“VOII”) is an emerging facilities based global service provider of Voice over IP (VoIP) based
solutions to residential and business customers. VOII also manufactures products and provides services to
Internet Service Providers, Telecommunication Service Providers and Cable Operators. VoIP, Inc, through its
subsidiaries, provides a comprehensive portfolio of IP multimedia based solutions ranging from subscriber
based voice services, to SIP based infrastructure design and deployment, to broadband customer premise
equipment design and implementation services, as well as engineering design, manufacturing and distribution
of wireless broadband technology.
On March 1, 2004, Millennia Tea Masters accepted an unsolicited offer from Mr. Steven Ivester, VOII’s
Chairman and CEO. As part of the offer, Millennia Tea Masters issued 12.5 million shares representing 87.8%
of shares outstanding in exchange for contributing the intellectual property rights and related assets of two
start-up companies formed to engage in the Voice over Internet business and cash. VOII is headquartered in
Fort Lauderdale, Florida.
VOII has established its IP telecommunication business using its patent pending Media Gateway technology
and strategic acquisitions of related companies. Portfolio companies include: eGlobalphone, Inc VoIP
Solutions, Inc, DTNet Technologies, Inc. and iMax Solutions Inc.
eGlobalphone, Inc. VOII markets telecommunication services to residential and business consumers
through its eGlobalphone, Inc. subsidiary. eGlobalphone uses broadband Internet access to provide VoIP
solutions. Presently, eGlobalphone is the only VoIP company that offers 911 emergency access without using
third party databases. This proprietary system is patent pending, and utilizes an automated built in switching
service to route emergency calls to the user's local emergency service provider (911 call center). It also offers a
"fail safe" connection in the event of a power outage or Internet service interruption.
Currently, eGlobalphone markets its products through OEM resellers, principally via the Internet and through
a limited number of retailers. The company plans to focus its marketing efforts on US and international
markets, with marketing efforts led by local marketing partner in each country. Manuals, interfaces, voice
prompts, and operators will be tailored for the primary language of the nationality, and the sales force will
operate locally in each market.
Initially, eGlobalphone will offer three rate plans in the U.S market. A $29.95 per month plan with unlimited
long distance geared toward home use, a $49.95 per month plan with free long distance for businesses, and a
free monthly access plan with rates charged for long distance usage and a one-time equipment charge.
All eGlobalphone unlimited calling plans will provide free voicemail, caller ID, call waiting, call transfer, caller
ID blocking, call forwarding, three-way conference and three-way calling features. Low-priced directory
information (411) services, conference call capabilities, "follow-me" calling, and many more features will be
offered as additional line items or per-call products.
Voice over Internet Protocol (VoIP) Technology
What is VoIP?
Internet Protocol (IP) telephony is an emerging technology system of hardware and software that allows
Internet users to transmit voice communications to any other Internet user or other telephone customer.
Analog voice signals are digitized by the VoIP and converted into data packets that are sent over IP-based
networks. VoIP is best utilized by means of high-speed broadband Internet access. Calls made over VoIP are
made in the same manner as with traditional telephony, and in many cases even use the same phone
equipment which is plugged into a multi-media terminal adapter (MTA), instead of a traditional 2-wire copper
loop delivered to the household by an ILEC.
VoIP market potential
In 2002, the North American wholesale VoIP sales were estimated to be around $400 million. VoIP equipment
sales consist of VoIP gateways, soft switches, including IP Private Branch Exchange (IP PBX), and VoIP
application servers. Total sale of VoIP equipment is expected to reach $12 billion by 2006, of which wired
enterprise IP phones may account for $2.7 billion1. VOII’s subsidiaries are all aimed to capitalize on the
different segments of the VOIP market.
Advantages of VoIP systems
Lower operating and maintenance cost. VoIP technology allows service providers to integrate both data and
voice communication traffic into a single network, thereby reducing the total ownership costs. Moreover,
unlike traditional switch based legacy telephone systems, new VoIP providers have relatively less investment in
network equipment and thus can offer services at lower price. Additionally call servers, application servers, and
client devices can be more easily integrated, allowing VoIP providers to scale up operations without incurring
massive infrastructure capital costs.
Increased efficiency. The traditional PSTN (Public Switched Telephony Network) systems are based on Time
Division Multiplex (TDM) technology, where the communication capacity is continuously allocated to a user,
even when the person is not speaking. As around half normal voice interaction is silence, half the capacity of
the networks remains unused. Unlike PSTN networks, VoIP networks allocate capacity as needed, thereby
reducing redundancy in the system, and increasing system efficiency. The ability to allocate capacity (which
equates to expense) on an on-demand basis reduces costs during intervals of off-peak usage. Additionally,
VoIP technology can compress voice traffic as much as 80% without significant quality degradation, thereby
further increasing the efficiency of the network. Furthermore, the cost of transporting voice traffic data is
significantly lower than that of transporting TDM voice traffic, due to the flexibility of IP routing technology
and the current historic low prices for national and international IP data transport.
IP Private Branch Exchange (IP PBX) is the best option if enterprise intends to reduce
deployment and maintenance costs
VoIP Solutions, Inc. This subsidiary integrates proprietary software solutions, hardware, and project
management services for ISP’s, MSO’s & PCO Service Operators. VoIP Solutions offers rapid project
assessment and deployment of a voice services infrastructure to service providers with an existing IP network
such as an ISP (Internet Service Provider), CLEC (Competitive Local Exchange Company), PTT (Public
Telephone and Telegraph) or cable plant operator. Solutions offered, involve delivery of portions of a SIP-
based infrastructure (cost-effective media gateways, transcoding solutions, SIP proxies) to a full turnkey
system with components that are custom designed for quick and efficient integration. Services provided
Billing systems/Platforms Telephone number management applications
Service and application design Auto CPE provisioning systems
Network design Wholesale call termination
Back Office/OSS systems Installation and training
Web site design and back office integration Support agreements
VOII has developed intellectual property and software for the soft switch platform and associated applications
related to the eGlobalphone service. An agreement with Porta One provides access to software source code and
database schemas that permit custom application, layer development and integration. All systems have been
designed for scalability, with the target being tens or hundreds of thousands of subscribers being managed by
the platform. Along with the billing and back office application, VoIP Solutions can supply all of the
components, services and customisation to fully equip a VoIP Telco.
As software development projects are completed by VoIP Solutions for eGlobalphone, each module will be
documented and effectively turned into a "product" that can be sold to other carrier customers and new market
Ultimately, the Telco solution will consist of the following modules -
♦ Soft switch with SIP Proxy (authentication and call control)
♦ Media gateways (to connect T1 and E1 lines and special services, if required)
♦ Billing (pre paid, post paid, WiFi Hotspot and call shop)
♦ Web Site Integration (sign up, payments, account management)
♦ Telephone number inventory management
♦ CPE stock control and logistics
♦ CPE auto provisioning (remote programming and updates)
It is expected that many customers will opt to purchase long-distance services from the eGlobalPhone
subsidiary in the packaging of a total solution, thus leading to additional continuing revenue for each service
iMax Solutions Inc. iMax Solutions is 51% owned by VOII, with the remaining 49% held by iCable Systems
Co., Ltd., a Korean corporation. Under the joint venture agreement, iCableSystem will license to iMax the
right to sell iCableSystem products in the Western Hemisphere, and profits from such enterprise will be
divided in accordance with ownership. VOII will pay iCableSystem $5 million during 2004 for the right to
market these products, whereas iCableSystem will guarantee iMax turnover from operations of $10 million in
2004, $25 million in 2005 and $40 million in 2006.
The iMax products consist of:
♦ Cable modem with built in VoIP (FXO/FXS or FXS/FXS,) WiFi (802.11b) and router
♦ ADSL modem with built in VoIP (FXO/FXS or FXS/FXS,) WiFi (802.11b) and router
♦ Stand-alone Multimedia Terminal Adaptor (MTA) with built in WiFi (802.11b) and router
♦ Stand-alone Multimedia Terminal Adaptor (MTA) with built in router
♦ Digital set-top box for receiving high-speed Internet, digital cable TV, VoIP (FXO/FXS or FXS/FXS) home
networking, video conferencing and various other multi-media applications.
iMax will also engage in research and development for the creation of new and next generation WiMax wireless
networking products and protocols for incorporation into the product line.
DTNet Technologies. On June 28, 2004, VOII acquired DTNet Technologies, Inc. in exchange for
2,500,000 shares of common restricted stock. DTNet is a value added reseller of customer premises equipment
for cable and DSL Internet providers. DTNet has a strong customer base of more than 300 entities including
six of the top ten cable companies in the United States, the National Cable Television Cooperative and Wide
Open West. Customer base includes Time Warner Telecom, Cox, Comcast, CableVision, RCN and BrightHouse.
DTNet’s sales for the past three years have increased rapidly from approximately $2 million in 2001 to $2.9
million in 2002 and $4.7 million in 2003. VOII’s management expects DTNet’s sales to increase up to 75% with
the addition of the VoIP, Inc. products.
VOII has successfully established a customer base, which includes Anew Broadband Inc., STS Telecom,
Radiant Holdings Inc., nTera Networks, VoIP Americas, CSI Consulting, Cima Telecom, Inc. and FMC
Telecom, Inc. Meanwhile, Comcast, Bellsouth, Scientific Atlanta, Version, Sprint, Vonage, and AT&T are in
various stages of testing the MTAs through its joint venture company with iCableSystem, iMAX Solutions.
Moreover, VOII is also likely to benefit from AT&T’s recent commitment to purchase 900,000 MTAs from
Scientific Atlanta. VOII’s iMAX Solutions & iCable System are likely to supply the MTA’s to Scientific Atlantic
By virtue of being in a host of different sub-segments of VoIP telephony business, VOII has several
competitors. The table below lists major competitor for each subsidiary.
Main competitors of VOII.OB subsidiaries and products
eGlobalphone Vonage, Packet8, DeltaThree, Voicepulse
VoIP Solutions ⇒ hardware products:
iMax Solutions - Sipura, Grandstream, Cisco, Mediatrix
⇒ SIP soft switch products:
- Nuera, Broadsoft, Pingtel, Nortel
⇒ integration solutions:
- Accenture, Hughes, Software, NetCentrex
DTNET Technologies - Arris, SMC, Motorola
VoIP service growth is highly dependent on High Speed Data (HSD)/broadband adoption rate. Global HSD
growth data suggests rising penetration rates for both consumer and SoHo users. U.S. broadband penetration
in May 2004 reached 48.61% of active Internet users at home.
Moreover, cable telephony services continue to proliferate as cable TV operators expand their video, data and
voice service portfolios. According to In-Stat/MDR, worldwide cable telephony subscribers are likely to
increase from an estimated 10 million by the end of 2003 to over 19 million in 2007. Similarly, In-Stat/MDR
expects 7 million VoIP phones to be in use by 2007.
In a recent report on VoIP, Merrill Lynch2 (ML) had the following HSD sub growth forecasts:
♦ For the U.S., to 8.0mn from 6.4mn new subs for 2004E, with 4.4mn cable HSD sub additions (revised
from 3.1mn) and 3.6mn DSL sub additions (revised from 3.2mn). In its new forecast, broadband
penetration rises to 27% of US homes by YE04E, up 6.2 pts during the year, and to 32% by YE05E, up 5.1
pts (revised from 30%).
♦ For Canada, to 963K new subs for 2004E from 929K (VS. 1,042K in 2003) which brings YE04 penetration
to 42.4% of homes, up 6.7pts YoY (vs. 7.1 pts in 2003 and 7.5 pts in 2002). We project 47.4% penetration
by YE05E (revised from 47.0%).
♦ Over time, ML expects broadband penetration to reach at least 50% in the U.S.
Internationally, Europe continues to account for the lion's share of cable telephony subscribers. As of late
2003, there were approximately 5.9 million cable telephony subscribers in Europe, in comparison to 2.7
million in the United States. Worldwide revenues from cable telephony service are projected to hit $3.7 billion
in 2003, and rise to more than $6 billion in 2007.
2 Source: ‘Everything Over IP’, dated 12 March’04
In terms of usage, VoIP carried only 5.9 billion minutes of international traffic or just 4% of the total minutes
carried in 2000. Three years later, TeleGeography estimate that VoIP carried 24.5 billion minutes in 2003,
jumping to nearly 13% of international minutes. IDC also estimates that VoIP now carries about 10% of all
voice traffic, international and domestic.
Exposure to VOIP space
We believe that VOII offers a unique opportunity for relatively high-risk investors to participate in the rapidly
growing VOIP market. We consider VOII to be a ‘pure-play’ VOIP company as its subsidiaries provide exposure
to the major segments of the VOIP space. For instance, eGlobalphone offers an opportunity to participate in the
rapidly growing broadband telephony market. Given that most companies that offer broadband telephony,
such as Vonage, are privately held, investors have to little investment opportunity. Instead, they currently have
to invest in telephone, cable or integrated service providers such as AT&T and Cox Cable, to get an exposure to
broadband telephony market.
‘White label’ VOIP service model likely to be successful
VoIP Solutions Inc., offers an opportunity to participate in the expected growth for the service provider
segment. Our discussion with VOII management indicates that VoIP Solutions will largely focus on providing
infrastructure services to broadband telephony service providers such as cable operators, instead of creating its
own physical network to deliver services to end subscribers.
In line with its strategy to provide ‘white label’ infrastructure services, VOII signed a Virtual Service Provider
(VSP) Agreement with VOIP-4U, a United Kingdom based telco, in July’04. Under the Agreement, VOII will
supply its proprietary media gateways for local Interconnection with British Telecommunications service
providers to VOIP-4U (“4U”), provide MTAs to 4-U’s clients, and manage ECommerce, web site applications
and customer billing functions. The service is expected to be launched in August 2004 with plans by VOIP-4U
to expand operations into Western and Eastern Europe.
The VOIP-4U web site and other sales channels will offer customers a choice of services, rate plans and local
telephone numbers. The Agreement will permit VOIP-4U to market US geographic and 1-800 numbers from
VOII’s wholly owned subsidiary, eGlobalphone Inc. Under the agreement eGlobalphone Inc. will be able to
market U.K. telephone numbers to its customers globally.
Rapidly growing market segment
As discussed in the Industry Trends section above, cable telephony business is likely to witness rapid growth
over next few years. Rising HSD penetration rate, technological advancement resulting in improved quality of
service (QoS), and greater price competition are likely to fuel the adoption rate for broadband telephone. With
cable telephony subscribers likely to increase to 19 million in 2007 from 10 million in 2003, VOII can witness
significant revenue and bottom line growth. The growth in cable telephone subscribers is likely to be
accompanied by similar growth in DSL based broadband telephony subscribers. Furthermore, as consumers
and SoHo transition to cheaper, ‘unlimited’ calling plans, we expect the share of VoIP related call volume to
We believe that VOII will start off with a strong earnings report. VoIP Solutions Inc. was awarded a $1 million
contract by ANEW Broadband in May’04. According to the contract terms, ANEW Broadband will buy 15,000
MTA-V102 units, of which a minimum of 5,000 units will be sold in the first year, and the remaining 10,000 in
the second year. Equipment sales will comprise of Multimedia Terminal Adaptors (MTA), Proxy Server and
Provisioning server. Similarly, the iMax Solutions Inc. joint venture is likely to generate turnover of $10 million
in 2004, $25 million in 2005 and $40 million in 2006. DTNet is already a profitable enterprise, with revenue
of approximately $4.7 million in 2003. We estimate FY04 revenues to be $24.9mn, rising to $103.7mn in
Competitive advantage of 911-service feature
We believe that VOII’s patent pending 911 system will enable it to quickly capture market share of broadband
telephony business. Lack of emergency calling features is a major problem faced by broadband telephone
providers. VOII filed a patent application with the U.S. Patent and Trademark Office in May’04. The patent
application pertains to technological process for a specific coding scheme to redirect certain call types based on
emergency dialing patterns, such as "911." Based on the number pattern dialed, the call will be redirected to the
legacy emergency telephony system, allowing the user to reach critical fire, police, and other services from
In addition to specific call routing of emergency calls out to traditional "copper-based" 911 facilities, the device
also provides a fail-safe mechanism for routing calls during power failure events. The device will automatically
pass calls out to the traditional PSTN during power failures, thus guaranteeing connectivity even during A/C
power failures, which would cause complete dialing failure with other VoIP equipment in the same class. These
FCC-approved devices allow transparent connection to the PSTN network and the SIP-based VoIP next-
generation networks and maintain the emergency services that customers have come to expect in telephony-
We estimate VOII’s target price at $3.93/share. Our fair value estimate is based on the average target price
yielded by comparable Price/Sale (P/S) and PE multiples for FY05. We used a 15% discount rate to determine
the present value of target price based on comparable multiples. We believe that a 15% discount rate
sufficiently accounts for lack of track record. Having said that, we believe that VOII has yet to prove its
business model and generate revenue. Thus our fair value is contingent upon the company successfully
implementing its business plan, and may be revised downward due to integration/implementation related
PRICE MRKT CAP EARNINGS EARNINGS
TICKER FISCAL PER SHR (MILS) ESTIMATE ESTIMATE P/S P/S P/E P/E
COMPANY NAME SYMBOL YEAR 7/16/04 7/16/04 CAL 2004 CAL 2005 2004 2005 2004 2005
COVD COVD.OB DEC 1.99 472 -0.20 -0.05 1.09 0.98 NM NM
NET2PHONE NTOP JUL 3.51 164 -0.45 -0.29 1.99 1.57 NM NM
PRIMUS TELECOM GRP PRTL DEC 3.82 343 0.41 0.58 0.24 0.22 9.30 6.60
8X8 EGHT MAR 1.75 75 - - 8.07 - NM -
Average 2.85 0.92 9.30 6.60
VOIP Inc VOII.OB DEC 2.75 50.71 0.14 0.64 2.46 0.52 19.05 4.33
Source: Baseline, Analyst estimates. Valuation ratios exclude minority interest for iMax Solutions.
Fair value Estimate
P/S 2005 P/E 2005
Peer average 0.92 6.60
VOIP Inc 0.52 4.33
Derived Value 4.85 4.19
Discounted @ 15% p.a 4.22 3.64
Average Fair Value $3.93
Source: Baseline, Analyst estimates, Valuation ratios exclude minority interest for iMax Solutions.
Steven Ivester - Chairman & Chief Executive Officer
Steven Ivester has been a successful technology inventor and entrepreneur since 1982 with many small
businesses. In 1985 he established a small chain of automotive service centers, All State Auto Centers (Founder
& President) and sold the business in 1991. He subsequently established, expanded and sold a small chain of
computer stores known as 21st Century Computers. In 1997, Mr. Ivester became President and CEO of
Navigator, PC, which invented a series of rugged waterproof military grade navigational computer and display
systems. From 2001 to present Mr. Ivester consulted for voice over IP companies and was responsible for the
specification and development of IP desktop telephone devices, Multimedia Terminal Adaptors, and portable
WiFi phones in addition to sourcing, negotiation and quality assurance.
Clive Raines - President - International Operations
Clive is a resident of New Zealand who has spent most of the past five years working for United States Internet
Telephony start-ups. He has been involved in senior management roles and has extensive experience in all
aspects of the computer, wireless and telecommunications industries. His international market knowledge and
business development skills have been used to establish services and partnerships in a number of countries.
These have included providing satellite telephone service for troops based in Bosnia and establishing the first
"all you can eat" telephone companies in the United States and United Kingdom. Clive has a strong technical
knowledge permitting him to design unique technical solutions to meet market demand. This knowledge was
used to redesign the back office, web site and e-commerce applications for theglobe.com prior to establishing
all aspects of an international business and technology model for the expansion of Voiceglo into overseas
markets. Clive brings many valuable relationships, know how and years of VoIP experience to VoIP, Inc.
John Todd - Chief Technical Officer
John Todd has been involved with the Internet industry since 1994, as a member of the founding teams of
Digex, Cidera, and other notable Internet infrastructure providers. His principal expertise is in the area of
provisioning system development, deployment, and integration, in environments ranging from voice services
to co-location, leased-lines, satellite, and GIS. He is also an accomplished project manager in the areas of
software development, provisioning, network operations, and customer service, having managed large groups
of technical staff during start-up operations. His skills are focused in the areas of Voice-over-IP systems
integration, operations, and large-scale deployment of voice services. He has advised more than 30 companies
in the development of VoIP platforms, and has published many articles on VoIP configuration, some of which
are now considered "must-read" documentation on the world's most popular VoIP PBX platform.
John is a 1993 graduate of the University of Rochester, and a regular speaker or participant in operations and
technology conferences like NANOG, VON, BSDcon, and OSDN.
Osvaldo Pitters - Chief Financial Officer
Osvaldo has a successful track record and progressive working experience managing finance, administration,
accounting and auditing functions in the US, England, UK and Latin America. Osvaldo worked 10 years with
Price Waterhouse Coopers in the Audit Department in Latin America and in England, UK. Osvaldo also worked
7 years with Pepsi Cola International in the Finance Area in several countries within Latin American Region.
He also worked for two years as Deputy General Manager of Banco Republica in Lima, Peru. Before joining
VOIP Inc, Osvaldo was the Controller of the Cima Telecom Group in Miami, Florida.
Osvaldo is a 1983 graduate of the Santiago University, Chile and a 1985 post graduate of the Cambridge
The state and federal governments have yet to finalize the regulatory environment for VoIP service providers.
Until now, VoIP service providers have experienced little interference from FCC or state agencies, and
Chairman Powell of the FCC has strongly indicated his preference for a “hands-off” approach to regulation in
the VoIP market. Some states have attempted to tax VoIP services, which has led to successful legal action by
VoIP providers. Vonage and others continue to fight (and to win) legal cases filed by the state authorities.
However, the risk of increased FCC and/or state regulation remains.
According to the management, VOII plans to sell the Tea company. We believe sale of the Tea company will
limit investors exposure to losses. Since its inception in 1998, Millennia Tea Masters has incurred losses of over
$624,647 including the inventory amounts reserve of $251,534.
Investors also need to be wary about the liquidity risk. VOII has very small trading volume and hence increases
exposure to liquidity risk.
Currently, no details about how VOII plans to finance its operations are available. Until recently, the company
has largely financed acquisitions through share swap. We believe that the management will need to raise new
equity or debt in order to fund its business plan. Lack of or delay in necessary financing could affect the
company’s ability to meet our earning projections.
Aggregate Income Statement 3QFY04E 4QFY04E FY04E FY05E
eGlobalPhone 1,373,750 3,097,500 4,471,250 56,140,000
VOIP Solutions 4,173,240 4,849,860 9,023,100 26,563,800
iMax Solutions 3,000,000 6,000,000 9,000,000 14,000,000
Dnet 1,250,000 1,250,000 2,500,000 7,000,000
Total Revenue 9,796,990 15,197,360 24,994,350 103,703,800
Cost of Sales
eGlobalPhone 979,125 2,220,750 3,199,875 39,648,000
VOIP Solutions 3,129,930 3,637,395 6,767,325 19,922,850
iMax Solutions 2,250,000 4,500,000 6,750,000 10,500,000
Dnet 937,500 937,500 1,875,000 5,250,000
Total Cost of Sales 7,296,555 11,295,645 18,592,200 75,320,850
eGlobalPhone 394,625 876,750 1,271,375 16,492,000
VOIP Solutions 1,043,310 1,212,465 2,255,775 6,640,950
iMax Solutions 750,000 1,500,000 2,250,000 3,500,000
Dnet 312,500 312,500 625,000 1,750,000
Total Gross Profit 2,500,435 3,901,715 6,402,150 28,382,950
Selling and Marketing Expense 186,496 329,310 515,806 4,741,776
General and Admin. Expense 322,152 541,872 864,025 4,178,276
Total Operating Expense 508,648 871,182 1,379,830 8,920,052
Operating Income 1,991,787 3,030,533 5,022,320 19,462,898
Pre-tax Income 1,991,787 3,030,533 5,022,320 19,462,898
Tax 697,125 1,060,687 1,757,812 6,812,014
Net Income 1,294,661 1,969,847 - 3,264,508 12,650,884
Less Minority Interest (in iMax Sol.) 150,299 174,668 324,967 956,695
Adjusted Net Income 1,144,362 1,795,179 2,939,541 11,694,188
Shares outstanding 18,440,000 18,440,000 18,440,000 18,440,000
EPS 0.06 0.10 0.16 0.63
Source: Analyst Estimates
IP & Traditional Telephony
Waheed Hassan, CFA was a Senior Research Analyst at an affiliate of Merrill Lynch, UBS Warburg, and Indosuez W.I.
Carr Securities. He was ranked among the #1 Financial Services Research Analyst in The Reuters Survey of Glob al
Emerging Markets in 1998. He was also member of the #1 ranked research teams in The Reuters Survey of 1999 and The
Euromoney Awards for Excellence 2000. He worked as a Research Consultant in Dresdner Kleinwort Wasserstein’s
equity research group in New York. Waheed got his CFA charter in 2000 and his MBA degree from Vanderbilt University,
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