Hi Chris,
Here's a blurb from their Feb press release; it covers three main points: revenue/subscriber ($56), capital expenditure/subscriber ($18), and agreements with handset companies.
"Our average subscriber run rate was $59 per month during the fourth quarter," said OCS President George F. Schmitt. "Even excluding promotions, the average revenue per subscriber was $56 per month. This was better than we had anticipated considering how skewed the subscriber additions were toward the last three weeks of the year. I am particularly pleased with how our customer acquisition costs per gross add declined through the year, dropping to under $520 per gross add for the fourth quarter," said Schmitt.
"With the rapid roll out of our networks, we will soon provide service in four of the nation's largest metropolitan areas - New York, Philadelphia, Boston and Miami," noted Douglas Smith, Omnipoint Corporation's CEO, Chairman and President. "At the end of 1997, we had 30 million pops covered or under construction and were marketing to more than 16 million," said Smith.
Added Schmitt, "As promised, we are preparing to launch service in Boston and Miami next month and are continuing to improve coverage in our existing markets. Our capital expenditures continue to run at roughly $18 per covered pop."
"Omnipoint made a significant number of strides in the last year," said Bradley E. Sparks, the Corporation's Chief Financial Officer. "In addition to initiating a commercial "hard" launch of the first digital PCS wireless service in the New York metropolitan area, we also launched service for Philadelphia and eastern Pennsylvania." Sparks added, "Significant new vendor financing arrangements were reached with Ericsson, Nortel and various financial institutions. Construction began in Boston, Providence, Miami, Detroit and Indianapolis, and we will cover approximately 50 million pops by the end of 1998."
At the end of 1997, the company had $129.8 million in cash, short term investments and escrowed deposits, as well as access to approximately $1.4 billion in financing commitments. The company completed a $750 million financing in February, 1998 which lowered its interest costs and provided the company with additional working capital, while replacing $515 million of existing commitments. Coupled with the recent $400 million in additional Nortel financing, the Corporation has enough capital to fund all its planned needs through the rest of 1998."
I like a company that allows its CFO to make statements :)
John
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