OmniSky Revises Second Quarter and Full Year Guidance For Increased Growth
Friday May 25, 5:24 pm Eastern Time
Press Release
SAN FRANCISCO--(BUSINESS WIRE)--May 25, 2001--OmniSky Corporation (Nasdaq NMS: OMNY - news), a global provider of award-winning wireless applications and services, announced today that it has revised its guidance for the second quarter and for the full year 2001 to reflect more rapid growth anticipated as a result of its recent transaction with News Corporation.
Earlier this week, OmniSky announced that News Corporation, a global media company, would increase its stake in OmniSky Corporation to nearly 20% in connection with the transfer of its rights in OmniSky International to OmniSky Corporation.
Revised guidance is being provided to reflect the combination of OmniSky International with OmniSky Corporation.
Revised Second Quarter Guidance
Guidance for subscriber growth and revenue for the second quarter remains unchanged. EBITDA for the second quarter is now expected to be between ($31.0) million and ($33.0) million. Net income/(loss) for the second quarter, including amortization of stock based compensation, is expected to be between ($41.0) million and ($43.0) million. This results in a revised net income/(loss) per share of between ($0.62) and ($0.65), based on weighted average shares outstanding of 65.6 million.
2001 Full Year Guidance
For the year ending December 31, 2001, the company anticipates increased subscriber growth, with revised subscriber numbers for year end expected to be in the range of 165,000 to 175,000 subscribers. Expected revenue for 2001 is being increased to a range of between $51.0 million and $56.0 million. EBITDA for the year is now expected to be between ($105.0) million and ($110.0) million. Net income/(loss) for the year, including amortization of stock based compensation, is expected to be between ($146.0) million and ($151.0) million. This results in a revised net income/(loss) per share of between ($2.18) and ($2.26), based on weighted average shares outstanding of 66.8 million.
Cash Position
On a pro forma basis, after giving effect to the combination of OmniSky International and OmniSky Corporation, OmniSky would have had approximately $90.0 million in cash and equivalents as of March 31, 2001. Anticipated sources and uses of cash are as follows:
March 31, 2001 Cash Balance: $90 million
Q2 - Q4 2001 EBITDA Loss: ($75) to ($80) million
Q2 - Q4 2001 Capital Expenditures: ($8) to ($10) million
Remaining Cash Required to Fund 2002 Loss: $38 to $42 million
Anticipated Financing Through 2002: $40 to $43 million
About OmniSky
OmniSky (Nasdaq: OMNY - news) is a leading global provider of wireless applications and services for users of mobile devices. OmniSky's award-winning service offers mobile professionals access to up to six e-mail accounts, including corporate e-mail via Microsoft Outlook as well as POP3 e-mail, the ability to search and surf the Internet, a broad range of optimized Web content, and the ability to securely conduct e-commerce transactions. The OmniSky service is available on the Palm V and Palm Vx, Handspring Visor Platinum, Visor Prism and Visor Edge, HP Jornada 520/540 Series Pocket PCs, the Compaq iPAQ Pocket PC, and soon on the Casio E-125 and HP Pavilion Notebook PCs, and can be purchased online or in over 1,500 retail outlets across the U.S. Service coverage includes over 167 major metropolitan areas within the United States, encompassing over 172 million people. OmniSky also offers its service outside of the U.S. through U.K. and German beta programs and has plans to expand into additional international markets this year.
In 2001, OmniSky will offer its proprietary wireless applications and services, including Communications, Content Delivery, and Location-Based Services to telecommunications carriers, online service providers, hardware manufacturers, and other third parties. OmniSky will enable these companies to offer differentiated wireless data solutions on any mobile device, from WAP-compliant cell phones to PDAs and laptop computers, and on the most widely available wireless networks, such as CDPD, CDMA, GSM and GPRS.
OmniSky is headquartered in San Francisco. For more information visit www.omnisky.com or call 415/764-2200.
The foregoing information contains forward-looking statements that are based on our current expectations. These expectations are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from those referred to in these forward-looking statements. Factors that could cause our actual results to differ include, but are not limited to, risks related to: market acceptance of an early stage service such as ours; delays in the development or introduction of new versions of our service; technical difficulties with networks or operating systems on which we rely to deliver our service; changes in technologies that affect the wireless, Internet or handheld mobile device industries; the ability of an early stage company such as ours to manage its growth; the protection of our proprietary information; release of competitive products and services; and general economic downturns. These and other risks are more fully described in OmniSky's periodic reports and registration statements filed with the Securities and Exchange Commission and can be obtained online at the Commission's web site at sec.gov. Readers should consider the information contained in this release together with other publicly available information about OmniSky for a more informed overview of the company.
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Contact:
OmniSky, San Francisco
Investor Relations:
Caroline Leakan, 415/764-3502
cleakan@omnisky.com
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