Voiceserve Inc. is a telecommunicatiosn company based in the UK that utilizes a unique Voice over Internet Protocol (VoIP) technology that offers rich features and low cost telecommunications services. The company’s main product is the VoiceSIM card. Although it appears to look just like any other SIM card, it has the exceptional ability to enable customers to receive phone calls in over 125 countries because of the Company’s proprietary Mobile Network that connects with VoIP technology.
Recently the company signed a non-binding agreement to acquire Voipswitch Inc. for $3 million in cash and stock. The company is focused on developing and implementing various types of software that facilitate the deployment of VoIP services. To date, Voipswitch has already implemented over 500 VoipSwitch systems around the globe. Voiceserve’s management anticipates the closing of this acquisition by the end of this year. The acquisition will add to revenues without delay, which could surpass $7.2 million in 2008.
According to a study completed by Analysts, cellular VoIP services will gain a strong position in both the VoIP and wireless communication markets. The wireless VoIP has potential to carry up to 28% of total fixed and mobile voice minutes in the United States and 23% in Western Europe by 2015. It has been predicted that revenue from cellphone based IP voice services will exceed fixed-line VoIP revenues by the year 2012, generating sales of $18.6 billion in the US and $7.3 billion in Western Europe.
Becon Equity Research’s Analyst stated, “All VSRV’s main products are fully developed and already being marketed. The uniqueness of Voiceserve is that it generates revenues not only from product sales, but also from being a service provider. The penetration of VoIP services is likely to increase by 30% per year through 2011, providing VSRV with a significant opportunity to increase market share and revenues by capitalizing on the unique benefits of its product offerings.”
In summary he concluded, “Going forward, the Company plans to further extend the market reach of its service offering, build distribution partnerships within the calling cards market and develop complementary segments such as wholesale VoIP termination, device-to-phone, PC-to-phone/Web-to-phone, IPTV and more. Through a combination of acquisitions and expansion in the US and EU markets, VSRV management expects to report 2007 calendar year revenue of $0.5 million and calendar year revenues of $7.2 million in 2008. As a result of these factors and also considering the strong industry outlook, we are initiating coverage of Voiceserve Inc. with a Speculative Buy rating and a $1.65 price target.”
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