Prospectus Summary (Part 2)--Summary Financial Data
You should read the following summary financial data together with
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and our financial statements and the related notes included
elsewhere in this prospectus. We were incorporated on March 3, 1998 and
commenced operations on March 28, 1998.
The pro forma balance sheet information below reflects each of the following
items, all of which occurred after June 30, 1999:
. the issuance of 939,086 shares of Series E preferred stock for net
proceeds of approximately $18,468,000; and
. the repayment of a note receivable from one of our officers of
approximately $1,000,000 on July 16, 1999.
The pro forma as adjusted information adjusts the pro forma information to
give effect to the conversion of all outstanding preferred stock into common
stock and the sale of 9,600,000 shares of common stock offered by us at an
assumed initial public offering price of $11.00 per share, after deducting
estimated underwriting discounts and commissions and offering expenses. See
"Use of Proceeds."
Period
from Inception
Period from Inception (March 3, 1998)
(March 3, 1998) through through Six Months Ended
December 31, 1998 June 30, 1998 June 30, 1999
Statement of Operations
Data:
Total revenue........... $ 31,533 $ 3,489 $ 184,173
Operating loss.......... (2,785,026) (2,509) (6,704,862)
Net loss................ (2,789,637) (2,741) (6,497,247)
Net loss per common
share.................. $ (0.55) $ (0.00) $ (0.71)
Pro forma net loss per
common share........... (0.55) (0.00) (0.25)
Other Data:
EBITDA.................. $(2,779,282) $(2,509) $ (5,603,935)
Capital expenditures.... 290,082 4,847 6,133,618
Cash Flow Data:
Used in operating activ-
ities.................. $ (153,505) $(1,427) $ (2,766,896)
Used in investing activ-
ities.................. (290,082) (4,847) (11,661,709)
Provided by financing
activities............. 483,066 49,133 44,859,829
June 30, 1999
------------------------------------
Pro Forma
Actual Pro Forma As Adjusted
Balance Sheet Data:
Cash, cash equivalents and marketable se-
curities................................ $35,998,794 $55,466,699 $152,974,699
Total assets............................. 43,575,321 72,081,234 160,551,226
Long-term obligations (including current
portion)................................ 1,725,090 1,725,090 1,725,090
Total stockholders' equity .............. 39,482,999 67,988,912 156,458,904
EBITDA, shown above under "Other Data," consists of net loss excluding net
interest, taxes, depreciation of capital assets and amortization of deferred
compensation expense. Other companies, however, may calculate it differently
from us. We have provided EBITDA because it is a measure of financial
performance commonly used for comparing companies in the telecommunications
industry
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in terms of operating performance, leverage, and ability to incur and service
debt. EBITDA provides an alternative measure of cash flow from operations.
EBITDA should not be considered in isolation from, and you should not construe
it as a substitute for:
. operating loss as an indicator of our operating performance,
. cash flows from operating activities as a measure of liquidity,
. other consolidated statement of operations or cash flows data presented
in accordance with generally accepted accounting principles,
. or as a measure of profitability or liquidity.
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