BURLINGTON, Mass. -- iBasis, Inc. (NASDAQ: IBAS - News), the global VoIP company(TM), today announced results for the second quarter ended June 30, 2007.

Revenue for the second quarter of 2007 was $155.6 million, compared to $127.3 million for the second quarter of 2006. Net income for the second quarter of 2007 was $0.1 million, or $0.00 per share, compared to net income for the second quarter of 2006 of $0.3 million, or $0.01 per share.

iBasis achieved $2.9 million in Adjusted EBITDA for the second quarter of 2007, compared to Adjusted EBITDA of $4.1 million in the second quarter of 2006. Adjusted EBITDA is a non-GAAP measurement presented to provide further information about the Company's operating trends.

Highlights of the second quarter include:

"Q2 was a very good quarter across the board," said Ofer Gneezy, president and CEO of iBasis. "We achieved strong sequential growth in revenue and gross profit and expanded gross margin in both our Trading and our Retail businesses. We also achieved a significant sequential increase in minutes carried on The iBasis Network(TM).

"In our Trading business, we expanded gross margin by a full percentage point, compared to the previous quarter, while achieving very strong sequential revenue growth. We also added a large number of new customers from all segments of the market, including consumer VoIP providers, which is an indication of the continuing demand for our services. In our Retail business, we achieved gross margin expansion for the third consecutive quarter as well as strong growth in revenue and gross profit.

"EBITDA grew sequentially but declined compared to Q2 2006 in large part due to the planned addition of approximately 40 new employees hired over the year to support future growth and strengthen key functions in the company, primarily finance and core trading operations.

"In the second quarter we also completed the restatement of financial statements from prior periods and regained compliance with Nasdaq listing requirements. Importantly, this enabled us to file today the preliminary proxy for our annual meeting, at which we will seek shareholder approval of our pending transaction with KPN.

"We are very excited about the benefits of the proposed merger of KPN Global Carrier Services into iBasis, and the tremendous market opportunities that this combination will create. We believe that this is an industry-changing event. The combination will bring together an established incumbent carrier with a very strong position in the European mobile market and a fast-growing, innovative VoIP leader. The resulting scale will make iBasis one of the five largest carriers of international traffic worldwide and position us very well in the consolidating international voice services market."

iBasis Inc. (Nasdaq: IBAS)