Corrections or additions?

Published in U.S. 1 Newspaper on February 16, 2000. All rights

reserved.

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: http://www.itxc.com.


Previous Story Next Story


Corrections or additions?


This page is published by PrincetonInfo.com

— the web site for U.S. 1 Newspaper in Princeton, New Jersey.

Facebook Comments