Here's a couple snips from the 3/24 10-K.
Wrt funding for Phase 3 . . .
Our principal uses of cash for the foreseeable future will be to fund the deployment of our high-speed network, to fund operating losses and to pay interest on our debt securities issued in February 2000, and dividends on our preferred stock. Based on our current projections, we believe that, in addition to the funds on hand at December 31, 1999, we will require additional cash resources of approximately $1 billion to enable us to complete the three-phase deployment of our network, as well as for other general corporate purposes. Approximately $692 million of these required resources, after deducting underwriting discounts and commissions and estimated offering expenses, and after establishing the required interest reserve to secure the first four interest payments on the notes, were funded from the net proceeds of the February 2000 common stock, notes and warrants offerings. Accordingly, based on our current projections, we believe that our cash, cash equivalents and short-term investments of approximately $499.3 million as of December 31, 1999, together with the net proceeds from the common stock, notes and warrants offerings in February 2000, will be sufficient to fund the first two phases of our network deployment. We will need additional funds to complete the third phase of our network deployment, and the funds we may actually require to complete any phase of the deployment may vary materially from our estimates.
Wrt Dell & Compaq bundling R2 modems, I think one of the long range plans is to sub out development/mfg of an integrated (internal) modem under separate licensing agreements, at which point boxmakers like Dell and Compaq along with makers of other devices (webpads, pda's, etc.) would presumably be channel partners (resellers) . . .
If we are to become profitable, our products and components must continue to be manufactured in large commercial quantities at competitive cost and quality. As a result, we will be required to achieve significant product and component cost reductions. We are currently working with several companies to develop efficient, low-cost personal computer card modems; smaller, lower cost external modems; and micro integrated circuits that can be built-in to end-user devices.
In the meantime, it looks like MCOM is at least leaving open the possibility that the box makers could be channel partners, meaning they could bundle the current R2's . . .
Potential channel partners include local telephone companies, wireless carriers, digital subscriber line or other high-speed Internet access providers, laptop computer and other portable electronic device manufacturers and system integrators or networking consulting firms that recommend large-scale purchases of access services such as ours to their customers.
Maybe we're getting close to some news on other channel partners . . .
We are currently in discussions with a number of potential channel partners and are seeking to establish relationships with additional channel partners during the second quarter of 2000. |
