By: AllPennyStocks.com News

Tuesday, December 18, 2012

Consumers are always looking for ways to curtail expenses. Advertisements for phone services, whether its landline (bundle to save), mobile, Voice over Internet Protocol, etc.; consumers are flooded with options. Ads have made magicJack VocalTel (Nasdaq:CALL) a household brand. Virtually everyone has seen the Vonage (NYSE:VG) commercials with the pile of crumpled-up paper and exclamations of savings. Amidst stiff competition, Vonage has been struggling to retain market share and now its Chief Financial Officer Barry Rowan has stepped-down to pursue another opportunity. Shares of CALL are up for 2012, but more than $10 below yearly highs of $28.22. Looking to swipe some of those consumers that are abandoning the services of better-known companies, netTalk.com, Inc. (OTCBB:NTLK), a maker of patented consumer electronics products and low-cost Voice over Internet Protocol (VoIP) telephone services, is encouraging people to “cut the home phone cord” and utilize their products.

The Miami Gardens, Florida-based company’s products include the netTalk DUO and DUO WiFi and the newly updated iOS (Apple) and Droid Smartphone apps (which works on most mobile devices), offering free nationwide calling in US and Canada. The products come with all the bells and whistles, such as caller ID, call waiting and call forwarding, and also include new features such as call blocking, and visual voicemail.

For about $65, users get a year’s worth of services and the device, which plugs into a computer or router to take the landline number anywhere using VoIP technology. Subsequent years are $30 each. For a fee, international capacities can be added to avoid roaming charges associated with typical cellphone providers.

While some companies offer different services, netTalk is bringing a complete package to users with the free apps that it has released over the past week. The new apps allows netTALK customers to send and receive unlimited SMS text messages via their netTALK DUO credentials and DUO home phone number to any SMS-capable device to U.S. & Canada. Between the iOS and Droid systems, the technology is available for the best-selling devices, including tablets and the iPod touch without being tethered to a texting plan from a mobile provider.

“While the netTalk DUO family of products is arguably the best value in the market, the introduction of these new text apps that provide unlimited texting in the U.S. & Canada for only $29.95 per year with no contracts or monthly fees puts the DUO line in a whole other category,” said Cedric Guillory, netTALK’s Senior Director of Marketing. Guillory says that the deal adds up to “hundreds of dollars” in savings annually for its customers.

In the first nine months of 2012, revenue has nearly doubled for netTalk to $4.1 million while total operating expenses were flat compared to the same period in 2011. The company is still operating at a significant net loss, but aggressive marketing efforts and the new products may help in turning the corner in coming quarters. The net loss is weighing heavily on its market capitalization, anchoring it in the area of $6 million and the price for a share around a dime.

netTalk has more than one million users, as disclosed in October, so the business is there. Now, if it can moderate losses and continue to build revenue, an increase in share value should follow to take the price upward from the all-time low levels it currently finds itself. Proper due diligence is, as always, encouraged.

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