<< In the case of WinStar, the higher EBITDA losses are consistent with trends for the rest of the CLECs. We believe these losses are appropriate to the game plan, and to have been shooting aggressively for faster reduction in losses, would have meant sacrificing long term growth opportunities. The company has the flexibility to reduce these losses in order to preserve cash, if that becomes necessary, but for the time being using the higher target EBITDA losses makes more sense. >>
this is a key point. not only does WinStar have the resources to execute its plan through calendar 1999, it can also slow down a bit and go EBITDA positive sooner based on, say, being in 35 cities by end of 1999 instead of 40. also, vendor financing could have a very positive effect on WinStar's cash position, allowing the company to extend well into year 2000, sticking to current plan, without the need to revisit capital markets.
mark
p.s. WCII's market cap is currently below $700M! |
