After 18 months of streaming its operations, deltathree is turning to an outside party to help it explore its strategic alternatives.
The SIP-based voice-over-IP products and services provider is looking for ways to maximize its shareholder value, and says it will consider a number of possibilities, including a strategic alliance, joint venture, merger or acquisition. The company has hired investment banking firm Sokoloff & Company to help it determine its next move. The firm specializes in providing advisory services to telecom, Internet and software companies.
According to its latest quarterly results, deltathree has no debt and $25 million in cash and short-term investments. The company says it has two years of operating cash flow on hand, and believes it is well positioned to leverage its place in the broadband telephony sector, according to company CEO Shimmy Zimels.
"We believe it is appropriate for deltathree to explore all strategic options to broaden the market penetration of our SIP-based communications services, increase revenue and accelerate our strategy to achieve profitability," says Paul White, deltathree's chief financial officer.
As of 10:24 a.m. EDT, deltathree's shares were up 3 cents to 58 cents.