MTON PRESS RELEASE JAN 9 8:45am
PORTLAND, Oregon, Jan. 9 /PRNewswire/ -- Metro One Telecommunications,
Inc. (Nasdaq: MTON), a leading provider of enhanced directory assistance (EDA)
to the telecommunications industry, today announced that revenue in its fourth
quarter ended December 31, 1997 was approximately $9.1 million. That figure
represents an increase of approximately 94% above fourth quarter 1996 revenue
and an increase of approximately 29% from third quarter 1997 revenue. The
company believes its revenue growth rate for the latest quarter is greater
than current investor expectations. Several factors related to existing
contracts contributed to the strong revenue performance, including growth in
call volume and initiation of service in certain markets. Full year 1997
revenue is expected to be approximately $26.1 million. Metro One plans to
announce full results for its fourth quarter and full year on or about
February 26, 1998.
While Metro One expects rapid year-over-year revenue growth to continue in
the first quarter of 1998, it also announced that revenue in that quarter is
expected to decline from fourth quarter levels. As previously disclosed, the
company has not expected that its contracts with Bell Atlantic Mobile for
service in Baltimore and Philadelphia (approximately 13% of Q4 revenue in
1997) will be renewed or extended upon expiration in December and January.
The transition of those subscriber calls to another service provider has
begun. In addition, the company expects a normal seasonal slowdown in revenue
in the first quarter from the fourth quarter.
"We believe that this increase in fourth quarter revenue again
demonstrates the long-term growth capability of this company," commented
Timothy A. Timmins, president and CEO of Metro One. "We continue to see
substantial overall year-over-year growth. Within a short period of time
after the Bell Atlantic Mobile transition, we expect incremental revenue from
existing and new sources to replace those revenues."
Regarding expenses, Timmins noted that the company has continued to open
new call centers as part of its strategy to provide local service in most
major metropolitan areas of the country. Fourth quarter 1997 expenses will be
above third quarter levels due in part to the development of call centers in
Sacramento and Dallas. "We also plan to begin accepting substantial call
volume in our new Los Angeles call center during the first quarter of 1998,"
Timmins said. "While the expenses of these new call centers and the lower
revenue will affect our bottom line in the first quarter, our longer-term
outlook remains bright. Fundamental changes in the telecommunications
industry, the proven success of our business model, expanding business from
existing customers and a range of potential new business opportunities all
contribute to our optimistic outlook."
Metro One Telecommunications, Inc. is an independent developer and
provider of Enhanced Directory Assistance(R) services for the wireless and
landline telecommunications industry. The Company currently provides its
services from fifteen call centers located throughout the country.
This press release contains forward-looking statements that are made
pursuant to the safe harbor provisions of The Private Securities Litigation
Reform Act of 1995. The forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements, including, but not limited to, increased
competition, expiration of EDA contracts, the rapidly changing
telecommunications market, changes in pricing policies by the company or its
competitors, lengthy sales cycles, lack of market acceptance or delays in the
introduction of new versions of the company's products or features, the timing
of the initiation of wireless services in new market areas by
telecommunications customers and other factors detailed in the Company's
Securities and Exchange Commission filings, including its reports on Form 10-
KSB for the year ended December 31, 1996 and on Form 1O-QSB for the quarters
ended March 31, 1997, June 30, 1997 and September 30, 1997. The forward-
looking statements should be considered in light of these risks and
uncertainties.
SOURCE Metro One Telecommunications, Inc.
/CONTACT: Stebbins Chandor, S.V.P., Chief Financial Officer of Metro One
Telecommunications, Inc., 503-643-9500; or Fletcher Chamberlin, Investor
Relations of Harris Massey Herinckx, 503-295-1922/ |
