I wouldn't be to sure it goes down, earnings were in line with estimates, and the outlook for the company looks very good.
biz.yahoo.com
Thursday July 15, 4:09 pm Eastern Time
Company Press Release
Metricom Reports Second Quarter 1999 Results
Company Sets the Stage for Ricochet High-Speed Nationwide Service
LOS GATOS, Calif.--(BUSINESS WIRE)--July 15, 1999--Metricom, Inc. (Nasdaq:MCOM - news), leading provider of
mobile data networking and technology, today announced results for its second quarter ended June 30, 1999.
Metricom reported revenues of $4.7 million for the second quarter up from $4.4 million for the same period of 1998. The
Company reported a net loss for the second quarter of 1999 totaling $16.6 million, or $.86 per share, compared with a net loss
of $13.2 million or $.71 per share for the second quarter of 1998. Losses are in line with expectations and are attributed to
Metricom's investment in high-speed technology and right-of-way expansion efforts.
For the six-month period ended June 30, 1999, revenues totaled $8.8 million, up from $8.0 million for the same period of
1998. Net loss for the first six months of 1999 was $31.6 million, or $1.65 per share, compared with a loss of $24.9 million or
$1.41 per share in the first six months of 1998.
''This was a monumental quarter for Metricom as we secured funding and a strategic partner to help us deliver on the vision of
nationwide high-speed mobile data service. We are poised to advance our service, giving mobile professionals the freedom of
anytime, anywhere access to replicate the experience of their office desktop in a wireless environment,'' said Tim Dreisbach,
President and CEO of Metricom. ''In addition to validation of our business plan, through the backing of MCI WorldCom and
Vulcan Ventures, Inc., the second quarter was marked by tangible progress toward making 128 kbps mobile data a reality.''
Metricom continued to execute on its strategy to provide high-speed mobile Internet and LAN access on a nationwide basis.
Progress for the quarter includes:
-- Testing: Alpha network field tests incorporating the industry's
first 128 kbps radio frequency equipment were successfully
completed. Through this phase of testing, encompassing over 300
poletop radio transceivers, 3 ISM Wired Access Points (WAPs), and
a fourth WAP using licensed WCS spectrum, the company was able to
validate both the network system and the production hardware.
During the quarter, Metricom also deployed a separate network for
Beta testing comprising 333 poletops and 7 WAPs, covering 42
square miles. Beta testing was initiated with over 250 customers
under an extensive test plan.
-- Infrastructure Readiness: The positive outcome of Metricom's Alpha
test has translated into the confidence to begin high-volume
equipment manufacturing. The Company recently signed an agreement
with Sanmina for mass production of radio infrastructure equipment
necessary for national network deployment beginning later this
year.
-- Right-of-Way: Progress continued for the initial 12 markets in
Metricom's rollout schedule. During the quarter, Metricom added
100 municipalities, including San Diego, Houston, Dallas and
Phoenix, to its growing list of areas granting permission for
deployment of Ricochet radio infrastructure.
-- Solution Development: A developer program aimed at enhancing
Ricochet service with third party solutions for mobile workers was
kicked off with an inaugural conference targeting software and
hardware developers, and vertical application integrators.
Participants experienced first-hand the performance on 128 kbps
mobile data services during the conference. Under the program,
Metricom announced two separate strategic relationships with
AvantGo and Wireless Knowledge to provide Ricochet support for
their services aimed at users with mobile devices.
-- Strategic Partnering: In June, Metricom announced an equity
investment of $600 million from MCI WorldCom and Vulcan Ventures
to fund national rollout of 128 kbps service in 46 markets by
mid-2001, with the first areas coming on line in the middle of
next year. In addition to funding, Metricom formed a strategic
relationship with MCI WorldCom which includes a five-year,
non-exclusive wholesale agreement valued at $350 million. Metricom
will also utilize MCI WorldCom's high-speed data and Internet
network and support operations as it expands nationally.
-- Subscriber Growth: While the Company is deferring aggressive
marketing until the new service is available and distribution
partners are reselling Ricochet, gross additions for the quarter
rose over 3,600, with a total installed base nearing 29,000 for
the current service in three markets. Metricom believes this
growth validates both market demand and the value of its service,
with the majority of new customers arriving via current-user
referrals.
''Execution against plan has been our focus. We have continued to manage costs while hitting all of our milestones toward
national service availability,'' said Dreisbach. ''We expect to continue to invest wisely as we manage under an aggressive plan
that results in 128 kbps service turn up beginning next year.''
About Metricom
Metricom, Inc. is a leading provider of mobile data networking and technology. The Company's Ricochet service provides
mobile professionals with high-performance, cost-effective untethered access to the Internet, private Intranets, local-area
networks, e-mail, and other online services. Ricochet is generally available in the greater San Francisco Bay Area, Seattle, and
Washington, D.C. metropolitan areas; in select areas of New York City; on corporate campuses; and at gate areas at major
airports throughout the United States. For more information, call 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.
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 1998 Form 10-K and other reports filed with the Securities and Exchange
Commission.
Metricom, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
1999 1998
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 20,830 $ 19,141
Accounts receivable, net 2,548 1,450
Inventories, net 1,484 3,046
Prepaid expenses and other 3,911 1,522
--------- ---------
Total current assets 28,773 25,159
Property and Equipment, net 7,103 5,555
Long-Term Investments 58 58
Other Assets, net 3,892 3,694
Total assets $ 39,826 $ 34,466
========= =========
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT):
Current Liabilities:
Accounts payable $ 2,701 $ 5,061
Accrued liabilities 13,322 10,662
Notes Payable 10,008 40
--------- ---------
Total current liabilities 26,031 15,763
--------- ---------
Long-Term Debt 75,281 55,098
Other Liabilities 348 680
Minority Interest 5,184 5,184
Stockholders' Equity:
Common stock 20 19
Additional paid-in capital 197,999 191,184
Accumulated deficit (265,037) (233,462)
--------- ---------
Total stockholders' equity
(deficit) (67,018) (42,259)
--------- ---------
Total liabilities and
stockholders' equity
(deficit) $ 39,826 $ 34,466
========= =========
Metricom, Inc.
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
REVENUES:
Service revenues $ 2,195 $ 2,277 $ 4,626 $ 4,251
Product revenues 2,468 2,084 4,223 3,713
-------- -------- -------- --------
Total revenues 4,663 4,361 8,849 7,964
COSTS AND EXPENSES:
Cost of service
revenues 4,459 6,419 8,892 12,177
Cost of product
revenues 2,011 1,416 3,337 2,791
Research and
development 8,806 4,860 17,041 8,318
Selling, general and
administrative 4,529 4,605 8,669 8,866
-------- -------- -------- --------
Total costs and
expenses 19,805 17,300 37,939 32,152
-------- -------- -------- --------
Loss from
operations (15,142) (12,939) (29,090) (24,188)
INTEREST EXPENSE 1,601 953 2,814 1,965
INTEREST INCOME 186 671 329 1,224
======== -------- -------- --------
Net loss $(16,557) $(13,221) $(31,575) $(24,929)
======== ======== ======== ========
Net loss per share $ (0.86) $ (0.71) $ (1.65) $ (1.41)
======== ======== ======== ========
Weighted average
shares outstanding 19,296 18,512 19,084 17,728
======== ======== ======== ========
Contact:
Metricom, Inc.
David Pangburn, 408/399-8155 (IR)
Jeannie Slone, 408/399-8136 (PR) |
