Advanced Radio Telecom Corp. Reports First Quarter Results
PR Newswire - May 15, 1998 07:15
ARTT %TLS %ERN V%PRN P%PRN
--------------------------------------------------------------------
BELLEVUE, Wash., May 15 /PRNewswire/ -- Advanced Radio Telecom
(Nasdaq: ARTT) announces its first quarter results. "I'm extremely
pleased with our progress towards implementing our new broadband data
network strategy. We're on target to commence commercial service in
Seattle during the fourth quarter of 1998," said Henry C. Hirsch,
chairman, president and CEO of ART. "Our first quarter revenues were
in line with management's expectations and reflect the shift from our
prior carrier's carrier link business to our new data network focus."
The following is a list of recent activities:
* On March 4, 1998, announced its intention to construct a broadband
packet-switched wireless network to provide business customers with a
comprehensive suite of communications services via its planned hybrid
fixed-wireless and third-party fiber network. Initially offering
high-speed, high-capacity Internet connectivity with access speeds of
56K- 10mbps, ART's services will include email, web access, web
hosting, and news feeds.
* Selected Lucent Technologies to provide network systems and
integration for ART's national network. Lucent has committed to
provide $200 million for the first phase of the network construction
subject to certain conditions.
* As previously announced, ART is currently seeking funding of
$125 million in the capital markets.
* ART is commencing a pilot program in Seattle in late June, with
full commercial service slated for early fourth quarter. Washington,
DC will launch before year-end 1998, with operations starting in an
additional 10 markets in 1999.
* Expanded nationwide 38 GHz license footprint through agreements
to acquire additional spectrum, resulting in population coverage of
over 186 million and channel pops of over 371 million, including 90
of the top 100 U.S. markets.
Total revenues for the quarter ended March 31, 1998, were $236,557
compared with $499,105 for the same period last year. Last year's
revenue included $356,970 of non-recurring equipment sales.
Operating costs and expenses were $7,089,860 for the quarter ended
March 31, 1998, down from $8,047,287 during the same period in 1997.
During the comprehensive management review of its operating strategy
the company substantially reduced its overhead, anticipating
organizational changes.
Operating losses for the quarter ended March 31, 1998 were $6,853,303
compared to $7,548,182 during the same period last year. The net loss
for the quarter ended March 31, 1998, was $10,823,414 million, or
$0.50 per share, compared to $12,461,976 million, or $0.79 per share,
for the same period last year.
ART intends to become the leading provider of broadband data services
to business customers that are without fiber connectivity. With
Lucent Technologies, Inc. as its network provider, ART is building a
packet-switched broadband national network utilizing a hybrid of
fixed-wireless and fiber to provide end-to-end connectivity on a
metropolitan, regional and national basis. ART's network architecture
will employ Asynchronous Transfer Mode ("ATM"), Internet Protocol
("IP"), Ethernet and Frame Relay technology. ART intends to offer a
comprehensive suite of communications services in up to 100 of the
top metropolitan markets in the U.S. over the next five years,
beginning in 1998 with Seattle and Washington, D.C. ART's 38 GHz
licenses cover 210 markets in the U.S., with nationwide licenses in
the United Kingdom, Denmark, Norway and Sweden. For further
information visit ART's website at artelecom.com.
The above information includes forward looking statements regarding
ART's strategy, network deployment, operations and agreements. These
statements are not guarantees of future performance. Known and
unknown risks, uncertainties, and other factors including without
limitation, financial resources and capital requirements, customer
demand, technological risks, need for definitive agreements,
management of growth, competition and government regulation may cause
actual results to differ materially from the future results implied
or expressed in the forward looking statements. Additional
information about the most significant of such factors is set forth
in ART's most recent annual report on Form 10-K. The Company does not
undertake to update or revise it forward looking statements publicly
even if experience or future changes make clear that any projected
results expressed or implied herein will not be realized.
Advanced Radio Telecom Corp.
Consolidated Statement of Operations
For the Three Months Ended March 31,
(unaudited)
1998 1997
Service revenue $236,557 $142,135
Equipment sales and construction revenue -- 356,970
Total revenue 236,557 499,105
Costs and expenses:
Technical and network operations 1,611,252 1,381,598
Cost of equipment sales and construction -- 214,399
Sales and marketing 1,512,078 2,455,622
General and administrative 2,398,088 2,982,149
Research and development 139,474 59,545
Depreciation and amortization 1,428,968 953,974
Total operating costs and expenses 7,089,860 8,047,287
Operating loss (6,853,303) (7,548,182)
Interest and other:
Interest expense 5,121,701 3,531,843
Financing commitment expense -- 2,699,881
Interest income (822,420) (1,062,749)
Loss before income taxes (11,152,584) (12,717,157)
Deferred income tax benefit 329,170 255,181
Net loss $(10,823,414) $(12,461,976)
Basic and diluted net loss per common share ($0.50) ($0.79)
Weighted average common shares 21,736,800 15,826,087
Advanced Radio Telecom Corp.
Condensed Consolidated Balance Sheet
(unaudited)
March 31, 1998 December 31, 1997
ASSETS
Current assets $33,032,482 $45,207,488
Property and equipment, net 25,461,173 25,294,946
FCC licenses, net 131,841,729 131,210,102
Other assets 21,901,910 30,847,213
Total assets $212,237,294 $232,559,749
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $8,861,827 $19,598,667
Long term debt, net of current portion 106,966,329 106,823,103
Other liabilities 29,551,746 29,880,916
Total liabilities 145,379,902 156,302,686
Stockholders' equity 66,857,392 76,257,063
Total liabilities and
stockholders' equity $212,237,294 $232,559,749
SOURCE Advanced Radio Telecom
/CONTACT: Lori Lawrenson, Investor Relations, 425-990-1620, or Mary
Moore Bailey, Mgr., Public Relations, 425-990-1617, both of Advanced
Radio Telecom/
/Company News On-Call: prnewswire.com or fax, 800-758 5804, ext. 120659/
/Web site: artelecom.com
|
