Airnet Communications (ANCC)
(Just opened)
-------Business-------
We provide broadband, software-defined base stations, backhaul free
base stations and other infrastructure products to wireless service
operators who use the GSM, or Global Systems for Mobile Communications,
protocol. Our base stations incorporate a new radio architecture that
is designed to allow operators to support simultaneous voice and
high-speed Internet data on a single software-upgradeable platform. We
designed our system to be easier to deploy, easier to upgrade, and to
have lower capital and operating costs than traditional narrowband
systems. We received the 1998 GSM World Award for Best Technical
Innovation from the GSM Association, an international body with members
from 133 countries, in recognition of our revolutionary
software-defined architecture and backhaul free technology.
-------Customers-------
The following table is a list of customers that have each ordered
approximately $1 million or more of our products from January 1997
through September 30, 1999:
Carolina PCSI Limited Partnership, Coleman County Telephone
Cooperative, Comtel PCS Mainstreet Limited Partnership, Hafatel, High
Plains/Midwest, MBO Wireless, Message Express Company*, NPI Wireless*,
OnQue Communications, Panhandle Telecommunications Systems*, Pinpoint
Communications, Third Kentucky Cellular Corporation
* Accounted for 10% or more of our revenues for the nine months ended
September 30, 1999 or for the year ended December 31, 1998. Together,
these customers accounted for substantially all of our revenues for
these periods.
In recent years, there has been substantial growth in the number of
wireless users around the world, reaching 303 million subscribers in
1998 according to International Data Corporation, or IDC. Approximately
44% of these subscribers are using the GSM protocol, making it the most
widely used protocol in the world. ... We believe our broadband,
software-defined solution positions us to meet the industry's challenge
of transitioning from today's GSM networks to tomorrow's integrated
voice and high-speed data networks.
In 1998, three customers accounted for 96% of our net revenues, with
one accounting for 42%. For the nine months ended September 30, 1999,
two customers accounted for 76% of our net revenues, with one
accounting for 48%.
GSM is the most widely used wireless standard worldwide, with systems
operating in approximately 120 countries and serving over 160 million
subscribers as of April 1999. This represents 45% of all wireless
subscribers and 65% of digital wireless subscribers worldwide. As of
September 1999, the number of subscribers using this standard increased
to approximately 200 million.
In the U.S., TDMA and CDMA are currently the most widely used
standards. According to Allied Business Intelligence, Inc. in 1998,
there were approximately 8.1 million TDMA subscribers and approximately
5.8 million CDMA subscribers. The primary users of these standards in
the U.S. have been the traditional large wireless operators. According
to Allied Business Intelligence, Inc. at the end of 1998 there were 3.0
million GSM subscribers in the United States, representing 4.3% of
wireless subscribers in the United States.
We have initiated direct sales efforts in the United States, Australia,
Africa, South America, and the Pacific Rim.
Our network currently consists of sales agents working in Africa, Chile
and Venezuela and a distributor working in Australia. Since GSM has
been widely adopted throughout the world, other geographical areas have
been targeted for penetration via similar third party relationships;
most notably, Eastern Europe and the Pacific Rim.
-------Competitors-------
Underwriters: Salomon Smith Barney, Hambrecht & Quist, Volpe Brown
Whelan
Shares offered in IPO: 5,500,000 (over-allotment=825,000)
Outstanding Shares: 22,223,736
Stock Price (as of 12/6): $14
Market Cap: $ 311.13 (based on $14 pricing)
Compare to Market Caps of: (as of 12/6)
Financials (in thousands)-------
Year,Revenues,Net Income (Loss),Diluted EPS
1996 $ 1,077 $(29,174)
1997 $ 1,603 $(17,236)
1998 $ 4,462 $(18,776) $(1.44)
as of
9/99 $11,077 $(11,333) $(1.38) |
