JIM:
OMNY: Was trading around book value yesterday (It reportedly has $2,40 cash/share)
Today opened on an up-gap with good increased volume.So far has not closed the gap and seems it is going to finish at its intra-day H.
The next hurdle seems to me will be the Feb.5 H at 4 before it could try for the Jan.17 at 6.43
Any opinions?
RAGL
Bernard
P.S.
They expect to become cash flow + sooner than expected:
PALO ALTO, Calif.--(BUSINESS WIRE)--Feb. 8, 2001--OmniSky Corporation (Nasdaq:OMNY - news), the award-winning provider of branded wireless e-mail and Internet services for users of mobile devices, today announced preliminary results for its fourth quarter, ended December 31, 2000.
OmniSky expects to report fourth quarter revenue between $4.0 and $4.6 million, in line with projections published on the FirstCall/Thomson Financial service. EBITDA, or earnings/(loss) before interest, taxes, depreciation and amortization, is expected to be between ($34) and ($35) million, better than the consensus estimate of ($42) million. Net income/(loss) for the fourth quarter, including amortization of stock-based compensation, is expected to be between ($40) and ($42) million, or between ($0.60) and ($0.63) per share, better than the consensus estimate of ($48) million, or ($0.73) per share, data based on FirstCall consensus shares outstanding of 66.5 million.
``We are excited by our many accomplishments over the past year -- in particular, the launch of our wireless service for both the Palm and Microsoft PocketPC platforms and the recognition by many, including, most recently, Business Week, that our service has set the standard for the wireless sector,'' said Patrick McVeigh, chairman and CEO. ``Since our May service launch, we've experienced a six-fold increase in subscribers and we anticipate reporting approximately 34,000 subscribers at the end of our fourth quarter. More difficult retail conditions and a greater percentage of lower-end PDA models sold by hardware manufacturers in the last quarter that we did not support affected our subscriber growth in the fourth quarter.''
``We continue to see enormous opportunity for wireless services on mobile devices,'' continued Patrick McVeigh. ``With the foundation we have built, we remain confident that we can take advantage of this burgeoning market. We intend to do this by further expanding our technology platform to include secure corporate e-mail, location-based services and advanced messaging, and by extending our model for delivering services through third parties.''
OmniSky also announced today that it has successfully renegotiated its airtime contracts with Verizon, AT&T, Cingular and Alltel Communications, immediately reducing its airtime costs by 40% and providing what OmniSky believes is one of the lowest cost, high-speed national data networks in the industry. Through this and other cost saving measures, the company now anticipates becoming gross margin positive by the third quarter of 2001, two quarters earlier than previously expected, and cash flow positive by the fourth quarter of 2002, one year earlier than expected.
``With the improvements we have made in our cost structure, we believe that we are on track to reach near-term profitability with continued momentum in subscriber growth,'' said Lawrence Winkler, senior vice president and CFO. ``The $120 million in cash and other investments we have on our balance sheet, along with anticipated vendor and partner financing, puts us in a solid position to execute against our business plan without additional financing from the public markets.'' |
