Hi Bruce,
EarthLink released it year end results yesterday afternoon. We ended the year with $32.5M in revenue up ten fold from 1995's $3M. EarthLink's Q4 numbers were $12.3M, a 23% increase over the $10M from Q3.
EarthLink's operating loss for the year was $31.1M versus $6.1M prospectively. On a percentage basis the operating loss decreased for the year by over 100%. For Q4, the operating loss fell for the first time ever, from $10.1M to $9.3M, or if you look at it another way, EarthLink's reduced it's operating loss by $800K for the quarter on a $2.3M increase in revenue or almost 1/3 of the increase in revenue went to reduce operating losses.
For the year, EarthLink added 197,000 customers, growing from 30,000 to 227,000 or a 661% increase in customers. As of mid March, EarthLink announced that it now has over 270,000 customers.
Gross margins improved during Q4 to 40%, up from 31.4% in Q3. Other significant achievements highlighted during our telephone conference call of earlier today, include; the build of a state of the art data center in Pasadena and the deployment of a new telephone switch from Lucent. Both of these expansion efforts will allow for growth of 6X our current customer base.
As stated in the prospectus, on the road show and earlier this morning, 1996 was a watershed year for EarthLink. We are positioned well to allow for continued rapid but controlled growth.
Our 10-K will be filed by late this month for 1996, Q1 earnings announcement will be in mid April and the first 10-Q will be filed the first or second week of May.
Respectfully,
garry betty |
