VoIP technology provider VocalTec Communications Ltd continues to be mired in losses, despite a merger in November 2005 that saw privately held Tdsoft Ltd emerge with a 75% holding in the Nasdaq-quoted company.
Herzlia, Israel-based VocalTec increased its loss for the third quarter from $464,000 to $1.1m on revenue that rose 59% to $1.7m.
It said fourth-quarter revenue is expected to be significantly higher and will take the full-year figure to more than $9m, double the 2005 figure. But to put this into perspective, it recorded $37m in 2000.
CEO Yosi Albagli said recent efforts to penetrate the Russian and Commonwealth of Independent States markets have begun to generate results. He said he expects significant order flow to increase in the near future and said the company had expanded sales efforts in parts of Asia.
The company’s poor financial performance confirms the warning in its annual SEC filing. Many of our competitors are difficult to compete with, as they are larger than we are, have broader name recognition, have greater long-term resources, and can sustain larger price reductions for their products than we can, it said.