NEW YORK-International Telecommunication Data Systems, which provides billing and information management services to wireless, satellite and wireline telecommunications companies, plans an add-on stock sale of 2.1 million shares.
ITDS, based in Stamford, Conn., went public in late October. Its stock, which is listed on Nasdaq, has traded in the range of approximately $15 and $25 per share since then.
Most of the shares, 1.6 million, contemplated for sale in the proposed secondary offering are being sold by existing shareholders of the company. Among the largest are these: Connecticut Innovations Inc. of Rocky Hill, Conn., is offering 295,614 of its 437,724 shares; Charles L. Bakes, chief executive officer, 204,490 of his 1,301,573 shares; Mark D. Spitzer, chief financial officer, 182,560 of his 1,039,960 shares; Lewis D. Bakes, chief operating officer, 175,290 of his 998,500 shares.
Net proceeds of the 500,000 shares offered by the company itself may be used for acquisition of businesses, products and/or technologies that are complementary to ITDS, the company said in a preliminary prospectus for the planned stock sale. Lehman Brothers Inc., New York, is lead underwriter.
ITDS installs, operates and maintains its proprietary billing systems under contract with telecommunications carriers, many of which are small and mid-sized cellular providers. Its growth strategy is to more aggressively pursue personal communications services and satellite telecommunications providers, as well as wireline carriers.
The company’s integrated software system also permits execution of functions that include subscriber activation, remittance processing and bill collections, data retrieval and reporting, electronic funds transfer and automated inventory management. It can do so in the bundled services environment, where several kinds of telecommunications services are provided by or through the same carrier.
In its preliminary offering statement, ITDS compared its products with those of “traditional solutions” this way. By eliminating the requirement to change support systems each time rate changes are implemented, ITDS said it allows its customers to reduce the time needed to introduce, “new marketing or sales strategies.” Correspondingly, telecommunications customers can quickly obtain updated information about services offered and rates charged-a convenience that aids in subscriber retention, ITDS said.
Among other things, ITDS also said its “solutions” improve the marketing and sales planning capabilities of carriers by giving them instant access to multiple databases that are fully integrated. By fast detection of fraud and delinquent accounts, ITDS accounts receivable and bill collection information help improve the cash flow of carriers, the company said.
