Q1 Results: Nice sequential revenue growth, but MAMMOTH loss!
DRAPER, Utah, April 15 /PRNewswire/ -- I-Link Inc. ILNK , an enhanced voice and data communications company, today reported significantly increased revenues for both its fourth quarter and twelve-month period ended Dec. 31, 1997.
Revenue from continuing operations was $14.1 million for the year ended Dec. 31, 1997. The revenue from continuing operations represents new sources of revenues to the company primarily from providing long-distance telecommunications and other enhanced voice and data communications services, all of which began in 1997. Revenues prior to 1997 were primarily related to I-Link's medical imaging division that the company intends to divest itself of. Accordingly, revenues, expenses, assets and liabilities of that division have been reported as discontinued operations.
I-Link demonstrated strong growth for the second straight quarter by increasing revenues from continuing operations to $5.2 million in the fourth quarter of 1997, up 38 percent from third quarter 1997 revenues of $3.7 million. This increase was primarily due to a 46 percent increase in telecommunications services business.
"Our strong revenue growth is a direct result of our increased focus on our network marketing channel," said John Edwards, I-Link chairman and CEO. "We are confident that our dedication to this sales channel will provide the growth we need to continue the deployment of our communications network across the country."
Net loss for 1997 was $29.9 million compared to $23.1 million in 1996, while the loss from continuing operations for 1997 was $28.7 million compared to $22.2 million for 1996. The loss for 1997 and 1996 included $11.0 million and $16.5 million, respectively, of non-cash expenses relating to acquired in- process research and development, stock options issued to non-employees, amortization of intangible assets related to I-Link's acquisition of other entities and interest expense. Net loss per common share for 1997 was $2.64 before a $7.53 loss per common share relating to a deemed preferred stock dividend (non-cash) resulting in a net loss per common share of $10.17. (The deemed preferred stock dividends are implied only and do not represent obligations to pay a dividend.) Net loss per common share for 1996 was $3.45 before a $3.08 loss per common share relating to a deemed preferred stock dividend (non-cash) resulting in a net loss per common share of $6.53.
Founded in 1994, I-Link Inc. is an enhanced voice and data communications company that uses Internet protocol (IP) telephony and its own private network to provide low-cost long distance, conference calling, voice mail, fax, e-mail and other communications services. I-Link's products and services are primarily offered through a network marketing channel. Through wholly owned subsidiary MiBridge Inc., I-Link develops emerging communications technologies that are used by I-Link and other leading communications firms worldwide. I- Link is headquartered in Draper, Utah, and its Web site is located at i-link.net. |
