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Breaking: VoIP Inc. shuts call termination, network ops

Fierce Markets is reporting that VoIP Inc. has shuttered its call termination and network operations.
Written by Russell Shaw, Contributor

Fierce Markets is reporting that VoIP Inc. has shuttered its call termination and network operations.

Some 25 engineering staffers are now jobless.

The company will recast itself as a pay-to-click services provider. Deals with Google and eBay are now in force.

Not a surprise. I mean, company shares are now trading at 55c.

VoIP Inc. declared its intent in an 8-K Securities and Exchange Commission statement filed today.

In the statement, VoIP Inc. said:

On February 5, 2008 VoIP, Inc. (the “Company”) decided to reorganize its operations to focus primarily on business opportunities associated with its patented technology including “click-to-call” and “pay-per-click” applications."

"Associated with that decision, on February 5, 2008 the Company suspended all of its telecommunications network operations including all current revenue generating operations. The Company also reduced its workforce by 25 persons, eliminating most of its network operations and software engineering staff."

"The Company is currently entertaining offers on the sale of its network, and has not yet evaluated the potential financial statement impact of related impairments of its tangible and intangible assets. However, a material non-cash asset impairment charge ranging up to $23.9 million to the Company’s consolidated 2007 results of operations is likely. "

More details are sure to emerge.

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