NEW YORK, Aug. 11, 2010 (GLOBE NEWSWIRE) -- deltathree, Inc. (OTCBB:DDDC), a global provider of video and voice over Internet Protocol (VoIP) telephony services, products, hosted solutions and infrastructures for service providers, resellers and direct consumers, today announced financial results for the second quarter 2010, ended June 30, 2010.

Mr. Effi Baruch, interim Chief Executive Officer and President, and Senior Vice President of Operations and Technology of deltathree, stated, "deltathree's second quarter 2010 financial results marked a return to sequential growth with revenues rising 11 percent over first quarter 2010 levels. Sequential revenue growth was driven by improved sales within the international VoIP reseller division as well as rising demand for deltathree's integrated digital voice and video phone solutions, where we see significant opportunities for future growth. As a result of our video phone service provider contracts, we have continued to increase our presence in the largely underpenetrated global market for integrated digital voice and video phone solutions. These offerings, as well as our recently launched joip Mobile solution, all leverage our world-class international VoIP and video over IP network.

"Launched in July, our new joip Mobile application provides cellular phone customers from across leading mobile operating systems (such as iPhone, Google Android and Nokia Symbian) flexibility to save up to 70 percent off their mobile phone bills. joip Mobile offers users a convenient and cost effective way to save money on the high cost of international and long distance calls as well as costly roaming charges incurred while traveling outside their local calling region .We are very pleased with the ramp in initial demand for joip Mobile from consumer and business customers alike, and with support coming soon for the Windows Mobile and Blackberry operating systems the joip Mobile application introduces yet another growth driver into our portfolio of next generation communication services, especially since we can also offer joip Mobile on a white-label basis to business customers. While we continue to expand our new offerings and our penetration into the integrated digital voice and video phone sector, we remain simultaneously focused on maximizing operating cost efficiencies and returning deltathree to long-term profitability," concluded Mr. Baruch.

For the second quarter of 2010, deltathree reported total revenues of $3.4 million compared with $3.1 million in the sequential first quarter 2010 and $5.3 million reported for the second quarter of 2009. The year-over-year decline in quarterly revenue was primarily related to the suspension of the operations of deltathree's then-largest reseller customer in the fourth quarter of 2009 as well as higher levels of revenue from service provider customers in the second quarter of 2009.