[Advanced Radio Telecom Closes Third Quarter with Successful Commercial Launch in Seattle]
ART Reports Third Quarter Earnings
BELLEVUE, WASH. (November 10, 1998) - Advanced Radio Telecom Corp. today announced its third quarter earnings and the achievement of several significant milestones as a facilities-based, broadband Internet Services Provider for the first mile.
-- ART filled the final two positions on its top executive team: Thomas Boyhan joined ART as executive vice president of sales and marketing; and Robert McCambridge was selected as executive vice president and chief financial officer.
-- ART completed definitive agreements with Lucent Technologies [NYSE:LU] in September. These agreements provide for contingent purchase money financing of up to $275 million, including deferred interest, and, also, $25 million of operating capital for the build out of ART's initial three markets.
-- ART launched its new broadband metropolitan area network in the Seattle area on September 15, and successfully converted 85 percent of its pilot customers into commercial customers.
-- ART signed leases for access to 53 buildings across its three markets -- Seattle, Portland and Phoenix. At the end of the quarter, ART had 14 buildings on its Seattle metropolitan area network.
“It's been a very busy and productive quarter for our company,” said ART Chairman and CEO, Henry C. “Harry” Hirsch. “I am very pleased with our progress to date and with the reception to our high-speed dedicated Internet access services in Seattle. We have totally reconstructed our organization and, with our new, seasoned top management team in place are looking to close out 1998 well ahead of our previously announced schedule for introducing commercial services in Seattle, Portland and Phoenix. There is an air of tremendous excitement at ART, as we focus all of our energies on the execution of our business plan."
Results for the quarter ended September 30, 1998
Total revenues for the quarter ended September 30, 1998 were $186,800 compared with $190,300 for the same period last year. Total revenues for the nine months ended September 30, 1998 were $629,100 compared to $875,500 for the same period last year, which included approximately $357,000 in revenue from non-recurring equipment and construction related activity.
Operating costs and expenses for the third quarter of 1998 were $10,660,300 including a $2.7 million non-recurring inventory write down, compared with $9,748,900 for the same period last year. Operating costs and expenses for the nine months ended September 30, 1998 were $25,120,500 also including a $2.7 million inventory write down, down from $27,700,400 during the same period in 1997.
Operating losses for the third quarter of 1998 were $10,473,500 compared to $9,558,600 for the same period last year. Operating losses for the nine months ended September 30, 1998 were $24,491,400 down from $26,824,900 for the same period last year. The net loss for the third quarter of 1998 was $14,835,200 or $(0.56) per share, compared to $12, 995,700 or $(0.66) for the third quarter of 1997. Net loss for the nine months ended September 30, 1998 was $35,973,200 or $(1.48) per share, compared to $38,154,000 or $(2.07) per share for the same period last year. |
