Performance System International FACTS (PSIX)
Shares Outstanding: 37.9 Million (@12.31.1995)
Market Cap ~ 550 Million
A re-submission of April 23rd News Release Concerning 1st Quarter Operations and Outlook for the Future:
CAUTION THIS IS A RE-SUBMISSION -- OUTDATED INFO
HERNDON, VA, APRIL 23 -- PSINet Inc (Nasdaq: PSIX) today reported record revenues for the quarter ended March 31, 1996, of $17.18 Million compared to $5.89 Million for the first quarter of 1995.
The 1996 first quarter net loss was $14.89 million (0.39 loss per share), compared to a net loss of $3.22 million (0.12 pro forma loss per share) for the same quarter in 1995.
"PSINet's first quarter growth rate is in line with our expectations given our principal focus on corporate services balanced with consumer services and software," William L. Shrader, Chairman, President and CEO. "In fact, corporate Internet Access accounted for 67 percent of the first quarter revenue and consumer access 24 percent. Internet Software sales amounted to approximatly 9 percent of the total revenue."
Selected Consolidated Operating Data
($ in thousands, except loss per share)
Three Months Ended 3/31
1995 1996
Revenue:
Internet Access $5,887 $15,618
Software - 1,563
Total Revenue 5,887 17,181
Operating results:
EBITDA (1) (1,437) (10,080)
Net Loss (3,215) (14,888)
Net Loss Per Share (2) (0.12) (0.39)
(1) Represents earnings (loss) before depreciation and amortization, interest income and expense, other income, income tax expense (benefit) and equity loss of affiliate.
(2) Pro Forma in 1995
Selected Consolidated Balance Sheet
($ in thousands)
December 31, 1995 March 31,1996
Cash and Short Term Investments $102,710 $83,196
Fixed Assets, net 51,355 70,837
Total Assets 201,830 203,272
Total long Term Debt,
less current protion 24,130 34,442
Total Shareholder's Equity 143,230 129,093
As previously announced, PSINet reported an increase of more than 200 percent in both high-speed corporate Internet services and bandwidth uogrades over the first quarter of 1995.
The Company increased the number of its consumer and professional subscribers by more than 50 percent over the fourth quarter of 1995. PSINet also announced that as of March 31, 1996,
its network included more than 300 local points of presence, of which 30 percent were outside the United States.
In related news, PSINet announced its revised marketing strategy to service the rapidly changing and increasingly competetive consumer internet, on-line and professional marketplace. In the third quarter of 1996, the Company plans to introduce a new consumer service catering to the pro, internet Customer who are both experienced computer users and savvy on-line Internet Veterans.
"The Service is designed for those customers who demand high-speed,low-latency connections which are always available and for those seeking the best quality Internet hardware, software and applications," said Shrader. "These customers require security and knowledgeable customer support and are willing to pay for it."
The Product will be cross-platform, available in both Windows 95 and Apple Macintosh versions from PSINet subsidiary InterCon Systems Corp., he added.
"By migrating to a web based PPP interface for our consumer product line, we will support all Internet software applications and take advantage of the strength of the PSINet
network architecture where corporate web and server applications will be housed, " Schrader said. "The PSINet backbone covers seven countries with Cascade Communications frame relay switches, Ascend Communications ISDN-capable modems and Cisco routers. The PSINet network represents the most advanced internet technology environment today and is ideally suited to support the kind of high performance consumer service for which PSINet is well known."
"In 1995, PSINet was the first company to introduce low, flat-rate, unlimited monthly usage at $19.95,
a pricing model quickly adopted by all competitors, including AT&T," Schrader continued. "We believe
that such services are destined to become lower-quality commodity offerings with lower margins targeting novice online users,
or "newbies" and are therefore best left to AT&T and the traditional on-line providers."
While pricing has not yet been set for the new service, the Company plans a product introduction and beta rollout service in LATE JUNE, complete with a description of all product features.
Some reorganization and management changes will be made under the direction of Pete Wills, PSINets newly appointed executive VP and COO, to support the new service without increasing the overall cost
structure of the netowrk or organization.
Schrader also commented on plans for strategic partnering. "The Global Competitive landscape has changed dramatically during the past twelve months and we believe that PSINet is in a strong position regarding the many strategic opportunities
which need to be evaluated," he said. " We are exploring opportunities to develop partnerships which offer PSINet a "win-win" solution in both operational and shareholder context."
Forward looking statements are made in the release pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Investors are
cautioned that all forward looking statements are subject to risks and uncertainties, including the actions of
acctual and prospective competitors and other competitive factors, risks associated with the company's growth and
domestic and International expansion and the development of the Internet Market, risks associated with acquisitions risks associated with the market for individual customers,
risks associated with system design and operation, and regulatory risks and the Company's dependence upon sole and limited source suppliers. Please
refer to the Company's SEC filings, copies of which are available from the company without charge, for a discussion of such factors and other factors
that could casue actual results differ materially from the forward looking statements.
PSINet is a leading provider of Internet Access, services and products to both organizations and individuals throughout the U.S. and abroad.
Internet aceess options range from high-speed modem dial-up and ISDN for telecommuters and small office LANs to dedicated high-speed circuits for
corporate connectivity.
The Company has its headquarters in Herndon, VA with sales and service offices accross
the US; Cambridge, England; Toronto and Tokyo. Further product availability and pricing infformation can be obtained by
calling 703/904-4100, through PSINet's Web Site at psi.net or by sending an e-mail request to info@psi.com
**********************************************************************
To Contact PSINet Investor Relations
PSINet Inc
Investor Relations
Kelli Harrington Nemer
Ph. 703.904.4100 Ext. 1245
E-mail:investor-relations@psi.com
**********************************************************************
I thought this might be helpful in a more factual discussion of the company.
Antal Runneboom |
