September 18, 2000 16:38
Rhythms sees results in line with forecasts
NEW YORK, Sept 18 (Reuters) - Rhythms NetConnections Inc. , which provides high-speed data services to businesses, said on Monday it expects its third-quarter revenues and cash flow losses to be in line with Wall Street expectations.
Englewood, Colo.-based Rhythms said it expects its third-quarter revenues to be in the range of $17 million to $18 million, which is in line with analysts' expectations and up 40 percent from the second quarter. In the third quarter of 1999, Rhythms had revenues of $3.3 million.
Earnings before interest, taxes, depreciation and amortization of deferred expenses (EBITDA) is expected to be a loss in the range of $116 million to $119 million, also in line with analysts' expectations. This compares an EBITDA loss of $47.1 million for the third quarter a year ago.
By the end of the third quarter, Rhythms expects to have about 45,000 to 47,000 digital subscriber lines (DSL) in service, representing a 45- to 50-percent increase over the second quarter 2000 and in line with analysts' expectations. The company had about 6,700 DSL lines in service at the end of the third quarter a year ago.
If it hadn't been for the labour strike at Verizon Communications , the No. 1 U.S. local telephone company, it would have had an additional 2,000 installed subscriber lines. Rhythms also said it has enough cash to fund its operations through the end of 2001.
Looks like neither COVD or RTHM will dissapoint. Looking good for the next year, no earnings warnings here !! Buyout for sure ! |
