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Technology Stocks : GST Telecom (GSTX) 4th quarter earning -- Ignore unavailable to you. Want to Upgrade?

To: Rob Preuss who wrote (222)	10/28/1999 8:35:00 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 369

Notes from conference call... Service Revenue by Category (millions of dollars): Q3 Q2 Local 16.2 14.5 Data 5.4 5.1 Internet Dialup 2.3 2.5 Private Line 9.8 10.7 Long Distance 16.7 18.5 Product 1.3 1.3 (cyclical, non-core) Facilities 45.6 19.6 [1] TOTAL 97.3 72.2 [1] Includes construction. This will continue to be a key contributor to revenue in future quarters. Revenue per access line was $56 in Q3 vs $58 in Q2 vs $53 in Q1. Interest payments totalled $32.3 M in Q3 vs $32.8 M in Q2. SG&A was $30.8 M in Q3 vs $28.8 M in Q2. YTD Capital Expenditures are on track at $208M. $175M cash on hand plus another $45M expected from the Williams contract. The $175M breaks down as: $45.2 M unrestricted 58.2 M restricted for fixed asset purchases 34.3 M reserved for future interest payments 36.7 M short-term investments (common stock) Additional cash will also come from facilities sales and divestitures of non-core businesses (including the planned divestiture of their Hawaiian assets). They're also proactively seeking alternative sources of financing such as private investment and vendor financing. Q&A Paine Webber: + Will roll out voice over DSL next year. + Class action suit is just a nuisance and they will file for dismissal Morgan Stanley: + Majority of their growth will be in their core markets... double-digit growth expected. + Will divest Action Telecom (expected in early November). This will reduce revenue about $1.3 M as well as 150 K in EBITDA reduction. Bank of America CIBC World Markets Deutsche Bank + 3 elements of legacy business ($18 M in revenue) will be incorporated into the core business and will grow at double-digit rates. + They view themselves as a backbone company, not a consumer company. Bear Stearns + Looking at opportunities for BOTH capacity sales AND facilities sales. + VITA network deployment: 37 ATM switches implemented (total 60 when frame switches included). Opportunities to expand East will increase the savings.