Third-Quarter Highlights: * Exceeded 1999 network expansion goals: 28 markets, 51 MSAs, more than 1,100 cities * Operational central offices grew 56 percent to 683 * 25 percent of all U.S. businesses passed by NorthPoint network * Revenue and subscriber growth of 129 percent and 107 percent respectively
NorthPoint Announces Year 2000 Network Expansion Goals to Over 60
Markets And 110 Metropolitan Statistical Areas (MSAs)
SAN FRANCISCO, Oct. 27 /PRNewswire/ -- NorthPoint Communications Group, Inc. (Nasdaq:NPNT - news) today announced strong third-quarter results, highlighted by substantial sequential revenue and subscriber growth. Revenue for the quarter ended September 30, 1999 was $5.73
million versus revenue of $2.50 million for the quarter ended June 30, 1999, a 129 percent sequential increase. Revenue for the third quarter of 1998 was $0.24 million.
Net loss for the third quarter of 1999 was $46.5 million versus a net loss of $37.9 million for the quarter ended June 30, 1999 and a net loss of $7.8 million in the quarter ended September 30, 1998. Earnings before net interest, taxes, depreciation and amortization (EBITDA) for the quarter ended September 30, 1999 were negative $42.0 million versus negative $29.2 million for the quarter ended June 30, 1999 and a negative $5.1 million for the quarter ended September 30, 1998.
NorthPoint launched service in eight new U.S. markets during the quarter, and can now offer service to one-quarter of all U.S. businesses and 20 percent of all households. The company currently offers service in 28 major metropolitan areas, spanning 51 metropolitan statistical areas (MSAs) and more than 1,100 cities and towns. Operational central offices increased 56 percent during the quarter to 683 at September 30, 1999 from 438 at June 30, 1999. The number of homes and businesses passed increased 47 percent during the quarter to approximately 22 million at September 30, 1999
from approximately 15 million at June 30, 1999. As of September 30, 1999, the company had secured collocation space in more than 1,200 central offices. The number of subscribers more than doubled, increasing 107 percent during the third quarter to approximately 11,800 lines at September 30, 1999 from approximately 5,700 subscribers at June 30, 1999.
''We are pleased with the progress made during the quarter. We believe the efforts we have made to accelerate our network expansion provide us with a competitive advantage in that we now have a presence in more metropolitan areas nationwide than any other provider,'' said Michael Malaga, NorthPoint's chairman and CEO. ''During the quarter we continued to add subscribers to our nationwide DSL network at an accelerating pace.''
NorthPoint Unveils Network Expansion Plans
NorthPoint also announced today an aggressive network expansion plan for the year 2000 that it expects will enable it to serve more than 50 percent of all U.S. businesses and 45 percent of U.S. households by the end of the year. The company expects to deploy service in at least 32 new markets, increasing its presence to over 60 major metropolitan areas and 110 MSAs by the end of next year.
''Due to increasing demand for broadband services NorthPoint continues to extend the reach of its DSL services in its existing 28 operational markets. Also, we will expand the geographic breadth of our service, providing the benefits of broadband to more businesses and consumers nationwide,'' said Malaga. ''We remain committed to offering our wholesale partners the most expansive DSL footprint available in the United States.''
Third-Quarter and Recent Highlights
NorthPoint's third-quarter was highlighted by several strategic marketing, technology and business development initiatives as well as by federal regulatory developments that are expected to create new market opportunities and enable the company to expand its service portfolio.
During the third quarter, NorthPoint announced the availability of technology allowing the future doubling, to 3 Mbps, of access speeds on its existing network. This technology, called ''DSL bonding,'' also enables NorthPoint to offer higher speeds at greater distances from central office facilities. NorthPoint also announced a voice over DSL trial with leading voice CLEC, Focal Communications. NorthPoint and Focal will utilize their respective expertise with data and voice
services to develop integrated services.
In addition, NorthPoint announced a first-of-its kind reciprocal services agreement with New Edge Networks, enabling the company to quickly extend its footprint in second- and third-tier markets. The agreement enables NorthPoint to offer services in markets that complement NorthPoint's own expansion plans.
More recently, NorthPoint announced an important agreement with SBC, the first wholesale agreement of its kind between competitive and incumbent local carriers. As part of the agreement, NorthPoint will enable SBC to immediately expand its DSL service offerings to more consumers throughout California.
NorthPoint also formed recent agreements with High Speed Access Corporation (HSAC) and iBEAM. NorthPoint will expand the broadband service offerings HSAC ffers its cable partners to include DSL, creating a unique new distribution channel for NorthPoint and demonstrating the complementary nature of cable modem and DSL technology. With iBEAM, NorthPoint brings high-quality streaming content over digital subscriber line (DSL) technology to its Internet and other network service provider partners.
Finally, NorthPoint also welcomed the Federal Communications Commission's ruling on unbundled network elements, which reinforced the availability of local loops and transport services NorthPoint
needs to continue the aggressive deployment of its broadband network. In its September 15 ruling, the FCC also recognized the importance of facilities-based competitors such as NorthPoint by not requiring incumbent carriers to unbundle DSL equipment. NorthPoint was also encouraged by SBC-Ameritech merger conditions approved by the FCC on October 6, requiring a separate data subsidiary, substantially discounted loop prices, increased collocation rights, and better access to operation support systems in the 13-state SBC-Ameritech region.
WOW~
CHRIS
|
