Ken98, & CAP,
Satelites anyone? Is this good or bad? I really don't know what to think.
NW
Subj: CellularVision USA, Inc. Reports 1998 First Quarter...
Date: 98-05-20 17:30:46 EDT
CellularVision USA, Inc. Reports 1998 First Quarter Results: Founder and Chairman Offers Ka Band FCC Satellite License
NEW YORK, May 20 /PRNewswire/ -- CellularVision USA, Inc. (Nasdaq: CVUS), the first Super-Wireless, Local Multipoint Distribution Service (LMDS) provider commercially licensed by the FCC, today announced financial results for the quarter ended March 31, 1998.
For the fiscal quarter ended March 31, 1998, revenues increased $572,000 to $1.4 million, an increase of 67% over revenues of $852,000 for first quarter 1997, ended March 31, 1997. However, revenues declined approximately $200,000.00 from the prior quarter.
The Company reported a net loss of $3.69 million, or $O.23 per share, for the quarter ended March 31, 1998, compared to a net loss of $3.54 million, or $O.22 per share, for the comparable period last year.
At today's annual meeting Shant Hovnanian, Chairman and CEO of CVUS, announced that he made a formal offer to CVUS to transfer, in return for reimbursement of documented out of pocket expenses not to exceed $300,000.00, a next generation Ka Band satellite license currently held by VisionStar Inc., a company 100% held by Hovnanian. VisionStar has no other business operations. This satellite license was awarded by the FCC in a formal application process which is now closed. The satellite is licensed to transmit and receive broadband communications signals over the continental United States for high-speed Internet, high-speed data, video teleconferencing and video programming. The Company has formed a special committee to consider Mr. Hovnanian's offer, including the terms of proposed contracts with satellite manufacturers, which are to be entered into prior to May 31, 1998 pursuant to the terms of VisionStar's FCC license. In addition, Mr. Hovnanian offered a pending patent application made by him that is related to the integration of satellite and ground-based broadband systems.
Hovnanian stated that he and his father, fellow CVUS cofounder, who together hold a majority interest in CT&T, which holds certain LMDS patents and intellectual property, are prepared to consider a restructuring of the CT&T relationship with CVUS to facilitate the previously announced Wasserstein Perella & Co., Inc. solicitation process, subject to any required approvals by other CT&T equity holders.
CellularVision USA, Inc. is the first Super-Wireless Local Multipoint Distribution Service (LMDS) provider licensed by the FCC. CVUS serves the l,100 square mile New York Primary Metropolitan Statistical Area, which encompasses approximately 8.6 million people. CVUS provides Super-Wireless high-speed Internet access and multichannel subscription television service to its customer base. For more information about CVUS, please visit their web site at www.cellularvision.com
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. There are many important factors that could cause the Company's actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, competition, and demand for CVUS' services and other risks identified in the Company's Securities and Exchange Commission filings.
SOURCE CellularVision USA, Inc.
CO: CellularVision USA, Inc.
ST: New York
IN: TLS
SU: ERN
05/20/98 17:28 EDT prnewswire.com
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