1/5/01 /PRNewswire/ Viasource Communications, Inc. (Nasdaq: VVVV), a leading broadband technology deployment organization, today updated revenue and earnings guidance for the fourth quarter of fiscal 2000. Viasource plans to announce its actual fourth quarter and fiscal 2000 earnings after the close of the market on March 1, 2001.
Viasource expects total revenue for the fourth quarter to be approximately $54 - $56 million, with an adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, special compensation charges and satellite and wireless revenue deferral) in the range of $1.7 - $2.6 million, which results in a net loss of ($0.06) - ($0.08) per share.
Reporting on Viasource's operations and the industry, Craig Russey, Viasource's president and ceo said, "During the quarter, we experienced continued growth in our cable businesses, including core video, advanced telephony and high-speed data. As the cable carriers continue to press forward with broadband connections, we expect growth in this core business line to continue. Our satellite and wireless business transitioned during the quarter as mid-power conversions came to an end and new high-powered retail fulfillment installations reached record levels with continued growth and expansion expected. The DSL connectivity business has been a big disappointment as the DLEC industry has dramatically changed. However, we do expect the demand for DSL connections to increase during the coming year, and the company is focusing its efforts on the wide range of local exchange carriers as the source for the majority of the connections in the future. Along with our expected revenue performance, Russey stated that Viasource has experienced earnings pressure from the costs incurred during the rollout of nationwide fulfillment services for the satellite and wireless sector and the major changes in the DSL industry. "During the last six months we, along with the rest of the telecommunications industry, have been widely affected by several factors and regardless of our deep client diversity, we are not completely insulated from these changes. Consequently, although we have seen earnings improve over the third quarter, they are nonetheless lower than expected." commented Russey.
There will a management conference call on Thursday, January 11, 2001 at 8:30 AM EST to discuss this release. The call will be hosted by Craig Russey; Dial-in: 888-809-8971; Pass code: Viasource. Please call in 5-10 minutes before the call to be connected. You will be asked to provide the operator with your name, company and contact number. This call will be web-cast at www.viasource.net and a replay will be available at 800-396-1246 until January 25, 2001, 5:00 PM EST.
DSL in distress
By Jennifer Jones
From InfoWorld.com
Published at: Friday, Dec. 1, 2000 1:01 pm PT
In theory, DSL promises large cost savings for companies of all sizes, compared to T1. But installation woes and poor performance can render it more trouble than it's worth
THE CORPORATE DSL blame game can start innocuously enough. For the smaller business using the technology to skirt a costly T1 connection, it is often sparked by a mysteriously downed e-mail server, or serious Web-posting lag-times.
But that high-stakes game often ends in aggravation, especially when a corporate customer -- who has likely waited weeks and sat through numerous installation visits -- reports a problem. Then the finger-pointing starts, as ISP, DSL provider, and local phone company go around and around figuring out who is responsible.
"It was one of the most frustrating experiences of my life," says Ken Riley, CTO of Thinkwell, an electronic textbook publisher in Austin, Texas. Riley claims Thinkwell suffered a major blow last summer when the 50-employee company lost its DSL service, which was used to run e-mail and basic Internet service, for about a week.
Initially lured by its attractive price tag, companies such as Thinkwell are eyeing DSL for a variety of applications. Use of DSL instead of a T1 connection is gaining appeal, especially considering that on average it costs $1,000 per month per line to outfit an operation with T1 high-speed access, while DSL hovers in the $300 to $400 per-month range. <SNIP>
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