Earnings! Gee- I thought they were almost out of cash or something. Can someone remind me why we went bankrupt?
Excite@Home Announces Third Quarter 2001 Operating Results
REDWOOD CITY, Calif., Nov. 15 /PRNewswire/ -- Excite@Home (OTC Bulletin Board: ATHMQ) today announced certain operating results for the third quarter of 2001. Complete results will be available in the company's Form 10-Q, which the company expects to file with the Securities and Exchange Commission by November 19. Highlights of the quarter include:
-- Worldwide residential broadband subscribers totaled 4,162,000 as of
September 30, an increase of approximately 486,000 during the quarter.
Total residential subscribers in North America were 3,690,000, an
increase of approximately 417,000.
-- Excite@Home's network and services operated in September at the highest
levels of reliability in the company's history.
-- Excite@Home had $157.0 million in cash and short-term investments as of
September 30, of which $140.1 million was unrestricted.
-- Total revenue for the quarter was $138.4 million, of which more than
85% was generated by the company's consumer access and commercial
services businesses.
-- Net loss for the quarter was $271.3 million or $0.66 per share. Net
operating loss, which excludes non-operating costs and certain
reorganization and other items, was $51.2 million or $0.12 per share.
Net operating loss excludes expenses for the write-down, cost and
amortization of goodwill, intangible assets and certain other assets
and acquisition-related amounts, restructuring costs, and cost and
amortization of distribution agreements, and includes interest and
other expense, net.
On September 28, 2001, Excite@Home and its wholly owned subsidiaries (excluding certain foreign subsidiaries) filed petitions for reorganization relief under chapter 11 of the United States Bankruptcy Code. On the same date, Excite@Home also entered into an asset purchase agreement with AT&T for the purchase by AT&T of substantially all of the assets and services associated with Excite@Home's broadband internet access business for $307 million and the assumption of certain liabilities. The transaction is subject to closing conditions including timely approval by the bankruptcy court and competing offers or overbids.
In October, Excite@Home entered into interim agreements revising the terms under which it provides service to its North American cable partners. Under these agreements, payments for past services were brought current and Excite@Home will receive periodic up-front payments for subscriber revenues based on a fixed amount of revenue per subscriber that is higher than the revenue-share amounts historically received. These interim agreements expire on November 30, 2001, and there can be no assurance that they will be extended or renewed.
Both Excite@Home and the creditor committee representing Excite@Home's bondholders have filed motions in the bankruptcy court seeking an order for Excite@Home to reject master distribution agreements with certain cable companies. |
