Metricom Announces 2nd Quarter, 1998 Results...
Tuesday July 21, 5:05 pm Eastern Time
Company Press Release ÿhttp://biz.yahoo.com/bw/980721/metricom_2_1.html
Metricom Announces 2nd Quarter, 1998 Results
Company Expands Right-of-Way Activities Into Fourteen Metropolitan Areas, and
Opens New Offices in Eight Cities
LOS GATOS, Calif.--(BUSINESS WIRE)--July 21, 1998--Metricom, Inc. (NASDAQ:MCOM - news)
today announced results for its 2nd quarter ended June 30, 1998.
Metricom reported revenues of $4.4 million for the 2nd quarter versus $4.7 million for the same period in
1997. Ricochet revenues in the current quarter increased 13% over the comparable quarter from prior year.
The Company reported a net loss for the second quarter of $13.2 million, or $.71 per share, compared to a net
loss of $12.3 million, or $.91 per share for the same period last year. The results for the quarter ended June
30, 1997 exclude a one-time charge of $3.6 million to write-down the Company's investment in Overall
Wireless to its net realizable value.
For the six-month period ended June 30, 1998, revenues totaled $8.0 million, up from $6.5 million for the
same period in 1997. Net loss for the six-month period ended June 30, 1998 was $24.9 million, or $1.41 per
share, compared to a net loss of $26.3 million or $1.94 per share for the same period last year, excluding the
one-time charge to write-down the Company's investment in Overall Wireless in 1997.
''In the second quarter, Metricom continued its progress towards making untethered information access
ubiquitous,'' said Timothy A. Dreisbach, Metricom president and CEO. ''Accomplishments during the
quarter clearly show that Metricom has moved from the strategic planning stage to actual execution.''
Dreisbach continued, ''The customer base for our Ricochet service continues to grow, and we are
approaching 24,000 subscribers. The engineering efforts for our next-generation, high-speed system have
moved out of our lab to a geographically-deployed testbed in the local area. A live demonstration of the
system will be held in New York City on July 22nd and July 23rd.''
During the quarter, Metricom launched Right-of-Way acquisition initiatives for its high-speed network in 14
metropolitan areas. These included the new areas of Atlanta, Boston, Chicago, Dallas, Denver, Houston, New
York City, Philadelphia, Phoenix, and San Diego, as well as in our existing service areas of Los Angeles
(partially deployed), San Francisco, Seattle and Washington, D.C. New offices were opened in eight of these
cities, with mini-Ricochet networks already connected to the nationwide backbone. Right-of-Way teams have
been trained and are on the ground working. In-person briefing sessions have already been held with
government leaders in over 400 separate municipalities, with very positive results. In keeping with company
policy, specific plans and dates for physical deployment and generally-available service in individual cities
have not been disclosed.
This press release may contain forward-looking statements. These forward-looking statements are subject to
risks and uncertainties. Actual results may differ materially from such forward-looking statements as a result
of risks and uncertainties, including those described in Metricom's 1997 Form 10-K and other reports filed
with the Securities and Exchange Commission.
About Metricom
Metricom, Inc. is the leading provider of wide-area, portable wireless data services. The company's Ricochet
products and services provide portable and desktop computer users with high-performance, cost-effective
wireless access to the Internet, private intranets, local-area networks, e-mail, and other online services.
Ricochet service is generally available in the greater San Francisco Bay, Seattle, and Washington, D.C.
metropolitan areas; on corporate campuses; and at select gate areas at eleven major airports throughout the
United States. For more information, call 1-800 Go-Wireless or visit Metricom's Web site at
metricom.com.
NOTE TO EDITORS: Metricom and Ricochet are registered trademarks of Metricom, Inc. All other
trademarks are the property of their respective owners.
Metricom, Inc.
Quarterly Statements of Operations
(In thousands)
Three Months Six Months
Ended Ended
June 30, June 30,
1998 1997 1998 1997
REVENUES:
Service revenues $ 2,277 $ 2,209 $ 4,251 $ 3,373
Product revenues 2,084 2,533 3,713 3,163
Total revenues 4,361 4,742 7,964 6,536
COSTS AND EXPENSES:
Cost of service revenues 7,564 6,792 13,722 13,674
Cost of product revenues 1,416 1,412 2,791 1,687
Research and development 3,715 2,868 6,773 5,889
Selling, general and
administrative 4,605 5,387 8,866 10,764
Provision for Overall
Wireless 3,611 3,611
Total costs and expenses 17,300 20,070 32,152 35,625
Loss from operations (12,939) (15,328) (24,188) (29,089)
INTEREST EXPENSE 953 1,172 1,965 2,131
INTEREST INCOME 671 549 1,224 1,310
Net loss $(13,221) $(15,951) $(24,929) $(29,910)
Net loss per share $ (0.71) $ (1.17) $ (1.41) $ (2.20)
Weighted average shares
outstanding 18,512 13,601 17,728 13,591
Metricom, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
1998 1997
ASSETS
Current Assets:
Cash and cash equivalents $ 41,147 $ 9,784
Short-term investments 150 4,390
Accounts receivable, net 2,513 2,278
Inventories 4,837 3,011
Prepaids and other 2,265 1,124
--------- ---------
Total current assets 50,912 20,587
Fixed Assets, net 22,927 25,875
Long-Term Investments 58 300
Other Assets 3,309 4,341
--------- ---------
Total assets $ 77,206 $ 51,103
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 3,502 $ 3,143
Accrued liabilities 7,180 5,464
Notes Payable -- 5,000
--------- ---------
Total current liabilities 10,682 13,607
--------- ---------
Long-Term Debt 45,000 45,000
Other Liabilities 943 1,129
Minority Interest 5,184 5,184
Stockholders' Equity:
Common stock 19 14
Additional capital 189,605 135,466
Accumulated deficit (174,232) (149,298)
Unrealized holding gain on investments 5 1
--------- ---------
Total stockholders' equity 15,397 (13,817)
--------- ---------
Total liabilities and stockholders'
equity $ 77,206 $ 51,103
========= =========
Contact:
Metricom, Inc.
Susan Kohl, 408/399-8198 (PR)
skohl@metricom.com
OR
Terri Bicknell, 408/399-8201 (IR)
terri@metricom.com
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