Metricom Announces First Quarter 2001 Results; Company Reports Improved Revenues and Reduced Cash Burn
April 19, 2001 08:06:00 AM ET
SAN JOSE, Calif.--(BUSINESS WIRE)--April 19, 2001--Metricom, Inc. MCOM, a leading high-speed wireless data services company, today announced results for the quarter ended March 31, 2001. Metricom reported revenues of $3.5 million and a net loss attributable to common stockholders of $186.4 million or $6.04 per share in the first quarter of 2001, which included a charge of approximately $88.9 million related to capital expenditures in certain markets that are currently not expected to be placed in service. Excluding this charge, net loss attributable to common stockholders was $97.5 million, or $3.16 per share, compared with $32.3 million or $1.15 per share in the first quarter of 2000, and $114.4 million or $3.71 per share in the fourth quarter of 2000.
Total cash, cash equivalents, and investments at March 31, 2001 stood at $315.8 million, a decrease of $211.0 million from December 31, 2000 driven principally by capital expenditures of approximately $115.1 million. Cash burn in the first quarter of 2001 decreased by $54.4 million compared with the fourth quarter of 2000. The decrease is a result of the company's recent shift in focus from network deployment to network operations and marketing.
Total Ricochet subscriber count as of March 31, 2001 was 40,900, including 22,000 subscribers of the high-speed service and 18,900 subscribers of the 28.8 kbps service. Total subscribers as of December 31, 2000 were 34,000, including 12,200 of the high-speed service and 21,800 of the original 28.8 kbps service. Average monthly revenue per user was $28.50 for the first quarter 2001, up from $26.61 in the prior quarter.
"The reduction in cash burn from last quarter is evidence of our operating discipline," said Ralph C. Derrickson, Metricom's interim chief executive officer. "We remain focused on building revenue, improving operations and developing new products and services to satisfy the growing demand for high-speed connectivity. Metricom's patented Ricochet technology has opportunities beyond our current offerings, as evidenced by recent Compaq and Ricoh products powered by Ricochet." First Quarter Results Conference Call Details Date: April 19, 2001 Time: 8:00 a.m. PDT Webcast Information: www.ricochet.com on the Investor Relations page Dial-in: (888) 810-4790, Access Code: Metricom Telephone replay: (800) 964-4650 Webcast and telephone replay available through May 3, 2001
About Metricom
Metricom, Inc. is a leading high-speed wireless data services company. With its high-speed Ricochet mobile access, Metricom is making "information anytime" possible -- at home, at the office, on the road, and on many devices. Founded in 1985, Metricom has spent more than 15 years on the development of its distinctive Micro Cellular Data Network (MCDN) technology. That experience enables Metricom to develop the fastest wireless mobile data networking and technology available today. Ricochet has operated a 28.8 kbps service since 1995. The new Ricochet, delivering user speeds of 128 kbps, is currently available in 13 markets and is connected to two 28.8 kbps service areas to increase coverage for mobile professionals. For more information, please visit Metricom at www.metricom.com.
Note to Editors: Metricom and Ricochet are registered trademarks of Metricom, Inc. All other trademarks are the property of their respective owners.
Statements made in this press release that are not historical facts, including those related to potential new applications for MCDN technology, revised business plan, future cash burn rates, future acceptance of third-party Ricochet based services or products, future demand for high-speed connectivity, future market conditions, future funding requirements, future funding options, future subscriber growth, future capital expenditures, future competitors, future partners, future market rollouts and future technology, are forward looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements. Among other things, the availability of financing and additional competition from existing and future competitors may impact the market. Projections of capital requirements, market size, partners, market acceptance of current and future products, technological rollout and competition are estimated based on preliminary information as well as certain assumptions which management believes to be reasonable at this time. All forward-looking statements are subject to the successful completion of the actions described in this press release. In addition to the factors set forth elsewhere in this press release, the economic, competitive, governmental, technological and other factors identified in Metricom's filings with the Securities and Exchange Commission could affect the forward looking statements contained in this press release.
Metricom, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
Three Months Ended
March 31,
2001 2000
(Unaudited)
REVENUES:
Service revenues $ 3,231 $ 2,334
Product revenues 281 889
Total revenues 3,512 3,223
COSTS AND EXPENSES:
Cost of service revenues 42,341 13,819
Cost of product revenues 3,218 300
Research and development 8,439 8,107
Selling, general and administrative 14,662 7,332
Depreciation and amortization 20,840 2,104
Provision for network assets 88,900 0
Total costs and expenses 178,400 31,662
Loss from operations (174,888) (28,439)
Interest expense (3,604) (7,471)
Interest and other income 6,338 16,593
Net loss $ (172,154) $ (19,317)
Preferred dividends and accretion $ 14,234 12,942
Net loss attributable to common
stockholders $ (186,388) $ (32,260)
Net loss attributable to common
stockholders per share $ (6.04) $ (1.15)
Weighted average shares outstanding 30,874 28,160
Metricom, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2001 2000
(Unaudited) (a)
ASSETS
Current assets:
Cash and cash equivalents $ 270,158 $ 315,309
Restricted cash and cash equivalents 7,123 11,331
Short-term investments 660 143,928
Restricted short-term investments 37,903 38,085
Accounts receivable, net 2,640 2,409
Inventories, net 33,385 31,686
Prepaids expenses and other 7,091 11,480
Total current assets 358,960 554,228
Property and equipment, net 283,998 202,891
Network construction in progress 387,096 463,535
Other assets 17,805 14,740
Restricted long-term investments - 18,166
Total assets $ 1,047,859 $ 1,253,560
LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)
Current liabilities:
Accounts payable $ 69,337 $ 89,115
Accrued liabilities 35,028 38,973
Notes payable 847 876
Total current liabilities 105,212 128,964
Long-term debt 245,885 244,667
Other liabilities 823 554
Redeemable convertible preferred stock 615,641 614,976
Stockholders' Equity/(Deficit):
Common stock 31 31
Warrants to purchase common stock 61,869 61,869
Additional paid-in capital 787,536 783,252
Accumulated deficit (769,737) (583,348)
Accumulated other comprehensive income 599 2,595
Total stockholders' equity/(deficit) 80,298 264,399
Total liabilities and stockholders'
equity/(deficit) $ 1,047,859 $ 1,253,560
(a) Derived from the Company's audited financial statements.
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