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Published in U.S. 1 Newspaper on February 16, 2000. All rights
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Cash Out for ITXC’s Tom & Mary Evslin
Just as worldwide concern over the security of the
Internet
peaked last week, ITXC Corp announced it planned to raise $227.7
million
by selling new stock and that some of its early investors will cash
out their holdings.
When the firm went public on Nasdaq less than six months ago,
September
28, the ITXC stock closed at $28.25. It traded last week at $118,
but when the stock offering was announced, it dropped to the mid
eighties.
ITXC is an international Internet telephony services carrier —
it routes telephone calls over the Internet (U.S. 1, July 15, 1998).
The three-year-old company will issue 2 million new shares. Tom
Evslin,
who founded the company with his wife Mary in their Library Place
home, is also taking the opportunity to sell a small percentage,
375,000
shares, of the 7.4 million shares he owns, and if the price holds
that will represent $42 million. Thirteen early investors and venture
capital firms will also sell some stock. No date has been set for
the stock offering.
Unlike companies that offer Internet telephony using special
equipment,
ITXC expedites Internet calls between ordinary telephones, acting
as a middleman to do the routing and the billing on behalf of another
company. Evslin also announced a significant new service that will
let clients of a particular portal use their computers to make long
distance and international telephone calls over the Internet. Called
ITXC webtalkNow! this service will be marketed to such portals as
Yahoo and Lycos. Another contract, this one for domestic calls, has
been sold to a California-based company, Dialpad.com,
Sales of new stock will help pay for hardware and software
acquisitions
and also for expedited sales and marketing tools.
Company growth can be measured by how many minutes of telephone
traffic
it carries. In 1998 it had 4.8 million minutes, and in 1999 it carried
more than 150 million minutes. Revenues in the fourth quarter of last
year were $11.1 million compared to $1 million for the same period
in 1998. Losses run apace with revenues; the company lost $6 million
in the fourth quarter of 1999 compared to $2.9 million in 1998.
ITXC Corp. (Internet Telephony Exchange Carrier)(ITXC),600 College Road East, Princeton 08540. Tom Evslin, CEO. 609-419-1500;fax, 609-419-1511. Home page: https://www.itxc.com.Previous StoryNext StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
