FirstCom Announces Record 4th Quarter 1998
Revenues of $8.5 million
CORAL GABLES, Fla.--(BUSINESS WIRE)--Feb. 8, 1999--FirstCom Corporation (NASDAQ:FCLX - news;
''FirstCom'') today announced record revenues of $8.5 million for the fourth quarter of 1998, representing a 124%
increase over FirstCom's third quarter 1998 results. FirstCom's revenues for the year ended December 31, 1998 were
$19.1 million compared to $1.1million for the year ended December 31, 1997. The Company's complete financial results
for 1998 should be available before the end of February upon completion of FirstCom's annual audit.
Consistent with previous quarters, the Company generated most of its revenues from its Chilean operation. The Company
expects its Peruvian operation to provide increasing revenues during 1999 since FirstCom Peru has substantially completed
installation of its fiber-optic network and recently received approval to deliver domestic and international long distance
services. In addition, revenues from Teleductos S.A. (FirstCom's most recent acquisition in Colombia) generated after
February 1, 1999 will be included in FirstCom's 1999 consolidated operating results.
Commenting on FirstCom's successful fourth quarter results, Mr. Patricio E. Northland said, ''We are extremely pleased
with the continued success of our Chilean operation and expect to replicate this business model in FirstCom's other
subsidiaries in Peru and Colombia. Also, the acquisition of Teleductos provides us additional opportunities to blend the
individual core competencies of our subsidiaries into a more effective business model that will optimize synergies in brand
recognition, marketing and sales, purchasing, customer service and integrated IP solutions for multi-national customers.''
FirstCom's Chilean long distance operation represented approximately 89% of FirstCom's 1998 fourth quarter revenue.
The increased revenue over the previous quarter was attributable to added capacity provided by a new Telrad switch and
new and existing correspondent agreements with AT&T, Sprint, IDT, Pensat and Justice Technologies for international
termination of traffic. In addition, the commencement of FirstCom's Net2Win enhanced data product and new Internet
services generated from the acquisition of Red de Computadores, contributed an additional $850,000 in revenues to our
Chilean operation.
Mr. Douglas G. Geib II, Executive Vice President and Chief Financial Officer added the following, ''The Company's
revenues for its 1998 fourth quarter and year-end significantly exceeded analysts estimates. Based on our 1998 fourth
quarter, FirstCom's calculated annualized revenue run rate approximates $34 million. Given the ramp-up of our Peruvian
operation and the recent acquisition of Teleductos we are comfortable that FirstCom will exceed this revenue amount in
1999 thereby increasing the likelihood of the Company achieving EBITDA positive results during the first quarter of 2000.''
FirstCom's cash position at December 31, 1998 remains strong with $59.9 million of cash resources (of which, $39.7
million is restricted to pay interest on the Senior Notes until 2001). Available credit facilities with Cisco and Nortel totaling
$18.4 million, that provide financing for equipment purchased from each respective vendor, supplement our existing
resources. The Company believes these resources should be sufficient to complete its current network design in Peru.
FirstCom's total investment in gross property, plant and equipment at December 31, 1998 was $46.4 million. At the end of
1998, FirstCom had installed 817 route kilometers of fiber optic cable representing 25,538 fiber kilometers. FirstCom has
wired 22 buildings in Chile and Peru as of year end and intends to wire additional 130 buildings in both countries before the
end of the 1999 first quarter.
At December 31,1998, FirstCom had approximately 330 employees and with its recent addition of Teleductos, S. A. in
Colombia, the Company's total work force today approximates 430 dedicated and motivated employees.
FirstCom Corporation is rapidly emerging as an alternative provider of high bandwidth integrated telecommunication
services to business customers in Peru, Chile and Colombia. FirstCom owns state-of-the-art fiber-optic networks in each
of these countries that are used to provide high-speed connectivity and content to the business community. FirstCom also
operates a competitive long-distance carrier in Chile and recently received its license to provide similar services in Peru.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The foregoing statements involve known
and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different
from those anticipated and discussed herein. Except for historical information contained herein, the matters discussed in this
press release contain forward-looking statements that involve risks and uncertainties, including but not limited to economic,
competitive, governmental and technological factors detailed in the Company's filings with the Securities and Exchange
Commission which readers are urged to read carefully in assessing the forward looking statements contained herein. |
