Hey DubM, thanks for the memories! Obviously you've been lurking for a while, or have just read a whole lot of posts to catch up. I have been talking about the rapid ramp for a couple of months. There is news today to substantiate it. Seems obvious to me that this management does have a plan, and is executing it ahead of schedule.
WinStar Reports Rapid Growth In Its Local Business
July 8, 1997 06:45 AM
CLEC Line Orders and Installations More than Doubled in Second Quarter
Quarterly EBITDA Loss Expected to Peak in 1997
Capital Expenditures Lower than Original Forecast
WINSTAR COMMUNICATIONS, INC. (NASDAQ - WCII) today announced a doubling in some of its key operating statistics, which will be reported along with second quarter results on August 5th. The company also announced that it expects its quarterly EBITDA losses to peak by the end of 1997 and decline in 1998, and that it now foresees lower capital expenditures over the next three years than originally expected.
The company reported that cumulative CLEC access lines installed, which were reported at 13,319 as of March 31, doubled to more than 30,000 during the second quarter. This rate of installation exceeded the company's earlier forecast of 5,000 per month. The company also reported that cumulative CLEC lines ordered, which were reported at 21,237 as of March 31, doubled to more than 43,000 at the end of the second quarter.
WinStar also confirmed that it had secured roof rights on approximately 1,400 buildings as of the end of June, versus 1,000 at the end of March, and 800 at the end of 1996.
The rate of growth in WinStar's quarterly EBITDA losses is expected to slow after the second quarter and peak by the end of the year, with declining EBITDA losses expected in 1998.
WinStar also expects its capital expenditures to be lower than originally expected. The company had planned to spend $500 million in the three year period covering 1997, 1998, and 1999. The company now expects to spend no more than $450 million, due mainly to lower expenditures on customer premise equipment than in the original budget. WinStar remains fully funded through 1999 as a result of the stock and bond offerings which it undertook in the first quarter of 1997, which increased funds available for WinStar's growth by $550 million. |
