More good news!!!!
HSA Reports Revenue Growth of 567% Over First Quarter 1999;
Residential Cable Modem Subscribers Increase to 26,000
DENVER, May 3 /PRNewswire/ -- High Speed Access Corp. (NASDAQ:HSAC), a
leading broadband services provider to residential and commercial subscribers,
today announced net revenue of $1,994,000 for the first quarter ended March
31, 2000, an increase of 567% over net revenue of $299,000 generated for the
first quarter ended March 31, 1999.
HSA's residential cable modem subscribers increased 61.5% from 16,099 at
December 31, 1999 to 26,000 at the end of the first quarter. As of March 31,
2000, HSA and its cable partners are now deployed to deliver high-speed
Internet access to approximately 2.3 million homes passed. As of March 31,
2000, HSA had the right to offer services to more than 2.1 million homes
passed under contracts or letters of intent.
These totals do not include five million homes passed under an April 13,
2000 agreement in principle with Charter Communications. Under that five-year
agreement, Charter will leverage HSA's capabilities as a broadband ISP for
platform and connectivity services for five million additional homes passed.
The new agreement supplements the 1999 full turnkey agreement between Charter
and HSA wherein Charter committed a minimum of 750,000 homes to HSA for
deployment of Charter Pipeline(R).
Dec. 31 Mar. 31
1999 2000
Homes undercontract or
letter of intent 2,000,000 2,165,000(a)
Homes deployed 1,900,000 2,291,000
Subscribers:
Residential 16,099 26,000
Commercial 685 781
Dial up 6,648 7,979
(a) Excludes homes deployed under interim agreements with Charter
Communications.
"We begin 2000 with a solid foundation for continued growth," said Dan
O'Brien, President and CEO of HSA. "HSA continues to recruit new cable
partners and continues to expand its footprint with current affiliates
including Charter Communications and many others. In April, we were proud to
announce a new five-million home agreement in principle with Charter
Communications which will leverage HSA's capabilities as a leading broadband
platform while utilizing the resources of a larger system operator. We
believe this "Network Services" business model designed for Charter will prove
to be attractive to other large cable operators, since it offers
cost-effective, flexible and customizable business solutions for the delivery
of the full range of IP services. The Network Services model is especially
attractive for HSA in that it will allow us to scale our resources more
effectively across a wider range of markets. This will enable our cable
partners more flexibility in marketing and pricing with little or no impact on
HSA's bottom line."
HSA also developed a multiple-ISP-over-cable business model that will
position the company to take full advantage of an open access environment. In
early February, Insight Communications, which serves approximately 85,000
customers in the Columbus, Ohio area, selected HSA to support its delivery of
Road Runner Internet services to area residents. The strategic relationship
called for HSA to provide sales, installation, provisioning, local content and
tier one customer care for Insight's broadband Internet customers. This
illustrates one of the options available to ISPs for working together on the
same local broadband network.
Mr. O'Brien added, "Also during the quarter, HSA continued to invest in
building a national, high-quality infrastructure, both to serve our existing
cable partners, and to prepare for what we believe will be a rapid roll-out of
fully-integrated video, voice and data services over the next several years.
In February, we announced that we will be opening a 500-seat national customer
contact facility in Louisville, Kentucky. We believe that customer focus will
be a key value driver in the burgeoning broadband environment, especially as
HSA ramps up its commitment to cable modem and DSL commercial customers,
Internet telephony and content."
The net loss available to common stockholders for the quarter was $27.7
million, or 51 cents per share, compared with a net loss available to common
stockholders of $113.8 million, or $18.35 per share, for the quarter ended
March 31, 1999. (See Attached Unaudited Condensed Consolidated Statements of
Operations)
The net loss before certain non-cash charges for the current quarter was
$27.2 million, or a pro forma net loss before non-cash charges of 50 cents per
share. This compares with a net loss of $6.3 million before non-cash charges
for the quarter ended March 31, 1999 or a pro forma net loss before non-cash
charges of 21 cents per share.
Non-cash charges for the first quarter of 2000 included $24,000 of
non-cash compensation expense from the issuance of stock options, $225,000 for
the amortization of distribution agreement costs and $276,000 of amortization
of goodwill and other intangible assets. Non-cash charges for the
amortization of distribution agreement costs during the quarter related to the
issuance of warrants to strategic partners. From time to time, HSA will incur
these charges as strategic partners earn the right to purchase additional
shares and HSA is provided with additional homes passed. For the first
quarter of 1999, non-cash charges included $1.5 million of non-cash
compensation expense from the issuance of stock options and $239,000 for the
amortization of goodwill and other intangible assets.
About High Speed Access Corp.
High Speed Access Corp. (www.hsacorp.net) is a leading provider of
broadband services to residential and commercial subscribers. The company
believes that it provides the most comprehensive turnkey solution available to
the cable operator. Its service enables subscribers to receive Internet
access at speeds substantially faster than traditional Internet access at
minimal cost to the cable operator. High Speed Access Corp. enters into long
term contracts with cable operators to provide them with the company's
services. For more information, please visit the company's web site at
www.hsacorp.net.
This press release contains statements about future events and
expectations regarding HSA ("we" or "our"), which are "forward-looking
statements." Any statement we make in this press release that is not a
statement of historical fact may be deemed to be a forward-looking statement
that involves known and unknown risks, uncertainties and other factors which
may cause our actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such risks and factors include,
but are not limited to: our unproven and evolving business model; our history
of losses and anticipation of future losses and need for additional capital;
potential fluctuations in our operating results; our competition; our
potential inability to attract and retain end users; our potential inability
to establish or maintain relationships with cable operators, including Charter
Communications, Inc.; and those risks and uncertainties we discussed in
filings made with the Securities and Exchange Commission.
High Speed Access Corp.
Condensed Consolidated Statements of Operations
For the three months ended March 31, 2000 and 1999
(Dollars in thousands, except per share data)
Unaudited
2000 1999
Net revenue $1,994 $299
Costs and expenses:
Operating 15,946 2,123
Engineering 4,912 1,485
Sales and marketing 6,216 2,038
General and administrative
(excluding non-cash
compensation expense from
stock options) 4,033 1,286
Non-cash compensation expense
from stock options 24 1,523
Amortization of distribution
agreement costs 225 --
Total costs and expenses 31,356 8,455
Loss from operations (29,362) (8,156)
Investment income 2,125 144
Interest expense (490) (25)
Net loss (27,727) (8,037)
Mandatorily redeemable
convertible preferred
stock dividends -- (518)
Accretion to redemption value
of mandatorily redeemable
convertible preferred stock -- (105,232)
Net loss available to
common stockholders $(27,727) $(113,787)
Basic and diluted net
loss available to
common stockholders
per share $(0.51) $(18.35)
Weighted average shares
used in computation
of basic and diluted
net loss available to
common stockholders
per share 54,329,031 6,200,000
Supplemental Information:
Net loss before non-cash
charges:
Net loss including
non-cash charges $(27,727) $(8,037)
Non-cash charges:
Compensation expense
from stock options 24 1,523
Amortization of distribution
agreement costs 225 --
Amortization of intangible
assets 276 239
Net loss before non-cash
charges $(27,202) $(6,275)
Pro forma basic and diluted
net loss before non-cash
charges $(0.50) $(0.21)
Weighted average shares used
in computation of pro
forma basic and diluted
net loss before
non-cash charges 54,329,031 29,450,000(1)
(1) Assumes conversion of mandatorily redeemable convertible preferred
stock into common stock at the beginning of the period or at issuance,
whichever is earlier.
SOURCE High Speed Access Corp.
-0- 05/03/2000
/CONTACT: investor, Stephen Calk, VP of Investor Relations,
303-256-2091, scalk@hsacorp.net, or media, Katina Vlahadamis, Director of
Media Relations, 303-256-2018, kvlahadamis@hsacorp.net, both of of High Speed
Access Corp./
/Web site: hsacorp.net |
