Financial: Mtel Improves Financial Performance as
Advanced Messaging Base
( Cambridge Telecom Report )
Mobile Telecommunication Technologies Corp. (NASDAQ:MTEL) continued to
improve its overall financial performance while making significant
progress introducing advanced messaging services to the American public.
The Mtel advanced messaging base nearly doubled to 133,200 units in
service and now accounts for more than 10 percent of Mtel's domestic
customers.
"This was a tremendous quarter for Mtel. We had record growth of our
advanced messaging services and accomplished several strategic objectives
that position Mtel to continue our fast growth while improving our
financial performance," stated John T. Stupka, Mtel president and chief
executive officer.
Consolidated revenue for the quarter ended Sept. 30, 1997 was $105
million, a 14 percent increase over the same period last year.
Consolidated operating cash flow, a key measure in the paging industry,
was $14.3 million versus $5.3 million in the year-ago period and $10.9
million last quarter. The consolidated net loss was $22.2 million, or 47
cents per share, a significant improvement from a net loss of $32.3
million, or 65 cents per share, in the third quarter of 1996.
Mtel's traditional one-way paging business recorded $33.2 million in
operating cash flow, representing a 38.7 percent operating cash flow
margin on revenue of $85.6 million. Mtel's advanced messaging operating
cash flow loss of $14.7 million improved by $2.8 million from the previous
quarter.
"Mtel has shown great discipline by improving its financial performance
while making significant investments in promoting the awareness of SkyWord
Plus," said Robert Kaiser, Mtel chief financial officer. "Comparing
Mtel's domestic operations in the third quarter of this year with the same
period last year, Mtel was able to bring almost 80 cents of every dollar
of incremental revenue to the operating cash flow line."
Mtel added 64,600 advanced messaging units in the quarter bringing its
total advanced messaging units in service to 133,200 -- nearly doubling
the previous quarter's advanced messaging base from 68,600 units in
service. Advanced messaging services include SkyTel 2-Way interactive
two-way messaging and Mtel's latest innovation SkyWord Plus. Since its
introduction on April 29, 1997, SkyWord Plus, a nationwide word messaging
service with guaranteed delivery, has become the world's fastest growing
wireless messaging service, with net additions increasing 111 percent from
last quarter to 44,500 in the third quarter.
"This is the second quarter in a row that Mtel has doubled its advanced
messaging net additions," said Stupka. "Mtel needs to continue making
customers aware of the benefits of guaranteed delivery and affordable
nationwide coverage delivered by SkyWord Plus and SkyTel 2-Way, which
should enable us to continue our strong growth."
Mtel has a total of 1,493,500 units in service worldwide, an increase of
seven percent sequentially and 24 percent from the third quarter of 1996.
Domestic units in service increased by 86,100 units sequentially or seven
percent in the third quarter to 1,279,200 units. The domestic total
includes 1,146,000 one-way units and 133,200 advanced messaging units.
During the quarter, Mtel added 21,500 one-way units. Mtel has 214,300
proportionate international units in service concentrated in Latin
America.
During the quarter, Mtel announced several significant developments. Mtel
signed a strategic resale agreement with PageNet, the world's largest
paging company, whereby PageNet will resell Mtel's advanced messaging
services and PageNet will be Mtel's preferred provider for local paging
services. Also during the quarter, Mtel announced that it signed four
commercial fixed location services contracts and now has more than 30,000
units under contract. Fixed location services enable companies to transmit
data to and from remote devices such as utility meters, vending machines
and other equipment that needs to be monitored. In addition, Mtel
announced that it had reached agreement with its bank lending group to
simplify certain covenants, giving the company additional financial
flexibility.
Mtel is a leader in wireless messaging, serving nearly 1.5 million
customers. Its SkyTel service is a leading brand in paging. Since 1989,
Mtel has led the paging industry towards true nationwide messaging through
a series of innovations that culminate in SkyTel 2-Way interactive
messaging service. Mtel is headquartered in Jackson, Miss., and had 1996
revenue of $350 million. FMI: www.mtel.com.
Copyright c 1997 Cambridge Publishing Inc.
Financial: Mtel Improves Financial Performance as Advanced Messaging Base.,
Cambridge Telecom Report, 10-27-1997. |
