iBasis Updates Status

iBasis provides update on SEC filings and Nasdaq Stock Market proceedings

May 30, 2007

2 Min Read

BURLINGTON, Mass. -- iBasis (NASDAQ: IBAS), the global VoIP company, today announced that it expects to finalize its restatement of prior period financial statements and complete the filing of its delinquent financial reports in June 2007. iBasis’ failure to file the reports in a timely manner had resulted in the Company’s non-compliance with the Nasdaq Stock Market’s listing requirements.

Update on Completion of SEC Filings

As previously announced, a Special Committee of independent directors, appointed by the Board of Directors of the Company, conducted an internal investigation relating to stock options granted to the employees of the Company, the timing of such grants and their related accounting and tax treatment. On October 20, 2006, the Company disclosed that the Special Committee had concluded that the appropriate measurement dates for determining the accounting treatment of certain stock option grants differ from the measurement dates used by the Company in preparing its financial statements. As a result, the Company currently expects to record additional non-cash charges in the range of $10 million to $20 million for stock-based compensation over the period from fiscal 2000 through June 30, 2006 and will accordingly restate its financial statements for that period in its Annual Report on Form 10-K for the year ended December 31, 2006.

As previously announced, the Company submitted a pre-clearance letter to the Office of the Chief Accountant (the OCA) of the Securities and Exchange Commission seeking guidance from the OCA on the Company's determination of accounting measurement dates for certain stock options granted between December 1999 and June 30, 2006. The Company received comments on its submission from the OCA Staff and has responded to those comments. The Company now expects to be able to complete the restatement of its prior period financial statements and to file its Annual Report on Form 10-K for the year ended December 31, 2006 and its Quarterly Reports on Form 10-Q for the quarters ended September 30, 2006 and March 31, 2007 during June 2007.

Update on Nasdaq Stock Market Proceedings

As previously announced, the Company has received notice that it is not in compliance with Nasdaq listing requirements due to its failure to file its periodic reports. On March 12, 2007, the Company was informed by The Nasdaq Stock Market that the Nasdaq Listing and Hearing Review Council has stayed the April 26, 2007 deadline for the delisting of the Company's securities, pending further action by the Listing Council. The Listing Council further informed the Company that it may submit additional written information for the Listing Council's consideration by June 1, 2007.

iBasis Inc. (Nasdaq: IBAS)

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