:
High Speed Access Corp. Reports Third Quarter Results
Quarterly Revenues Increased 300% to $4.3 Million
Residential Cable Modem Subscribers Reach 56,000
DENVER, Nov. 6 /PRNewswire/ -- High Speed Access Corp. (NASDAQ:HSAC), a
leading broadband services provider, today announced net revenue of $4,282,000
for the quarter ended September 30, 2000, an increase of 300% over net revenue
of $1,070,000 generated for the third quarter of 1999.
(Photo: newscom.com )
HSA's residential broadband subscriber base increased 37% from 41,000 at
June 30, 2000 to approximately 56,000 at the end of the third quarter. As of
September 30, 2000, HSA had the right to offer services to more than 6.6
million homes passed under contracts or letters of intent, and had deployed
its high-speed Internet service on local broadband networks passing
approximately 3.4 million homes.
"In the third quarter, HSA continued deployments of broadband
infrastructure, expanding our footprint to over 3.4 million homes passed and
adding approximately 15,000 residential broadband subscribers," said Dan
O'Brien, President and CEO of HSA. "In addition, in October we signed a
definitive agreement with Vulcan Ventures and Charter Communications that will
provide an additional $75 million in funding to HSA."
June 30 Sept. 30
2000 2000
Homes under contract
or letter of intent 6,600,000 6,600,000
Homes deployed 2,900,000 3,400,000
Subscribers:
Residential 41,000 56,000
Commercial 900 1,050
Dial up 8,700 9,050
O'Brien continued, "Also in the third quarter, we completed the
acquisition of Digital Chainsaw, Inc., a Florida-based web hosting and systems
integration company doing business as NetPerformance. As we increase our focus
on the small and medium enterprises in our markets -- using both cable modem
and DSL connectivity -- web hosting, web design and systems integration
capabilities will become increasingly important in gaining subscribers and
expanding our revenue stream. NetPerformance brings HSA an installed base of
web services customers as well as a strong talent base upon which to rapidly
grow our value-added services business."
HSA has now deployed commercial DSL in five markets: Denver, CO, Atlanta,
GA, San Antonio, TX, Raleigh-Durham, NC and Tampa, FL. These deployments were
completed under a reseller agreement with NorthPoint Communications, and
initial marketing to small and medium enterprises in these areas has
commenced. HSA recently announced the expansion of its DSL strategy that will
target approximately two dozen markets by the end of 2001.
The net loss available to common stockholders for the third quarter was
$32.2 million, or 56 cents per share, compared with a net loss available to
common stockholders of $14.3 million, or 26 cents per share for the quarter
ended September 30, 1999. (See Attached Unaudited Condensed Consolidated
Statements of Operations)
The net loss before certain non-cash charges for the current quarter was
$30.4 million, or a pro forma net loss before non-cash charges of 53 cents per
share. This compares with a net loss of $13.8 million before non-cash charges
for the quarter ended September 30, 1999 or a pro forma net loss before
non-cash charges of 26 cents per share.
Non-cash charges for the third quarter of 2000 included $95,000 of
non-cash compensation expense from the issuance of stock options, $796,000 for
the amortization of distribution agreement costs and $915,000 of amortization
of goodwill and other intangible assets. Non-cash charges for the amortization
of distribution agreement costs during the quarter related to the issuance of
warrants to strategic partners. From time to time, HSA will incur these
charges as strategic partners earn the right to purchase additional shares and
HSA is provided with additional homes passed. For the third quarter of 1999,
non-cash charges included $18,000 of non-cash compensation expense from the
issuance of stock options, $193,000 for the amortization of distribution
agreement costs and $268,000 of amortization of goodwill and other intangible
assets.
About High Speed Access Corp.
High Speed Access Corp. (NASDAQ:HSAC), a Wired World company(TM), is a
leading provider of broadband Internet access and related communications
services to residential customers and small and medium enterprises, or SMEs,
nationwide primarily using cable modem technology. HSA's core service offering
currently consists of cable modem Internet access, which HSA offers at several
speeds and prices to residential end users through partnerships with cable
multiple system operators. HSA is actively expanding its offering of services
to include DSL services as well as expanded web site hosting and a range of
other value-added and ongoing support services primarily for commercial
customers. HSA also is conducting technical and customer trials for Internet
Telephony service in collaboration with major telecommunication vendors.
Cautionary Note Regarding Forward Looking Statements
This press release contains statements about future events and
expectations that are "forward-looking statements." Any statement in this
press release that is not a statement of historical fact is a forward-looking
statement that involves known and unknown risks, uncertainties and other
factors which may cause the company's actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.
Specific factors that might cause such a difference include, but are not
limited to: the possibility that the company may not complete its proposed
financing with Vulcan or Charter; the company's unproven and evolving business
model, which has recently undergone substantial changes; the company's history
of losses and anticipation of future losses; the company's need for additional
capital, which may not be available to fund its business plan; the potential
fluctuations in the company's operating results; the company's competition;
the company's potential inability to attract and retain end users; the
company's potential inability to establish or maintain relationships with DSL
wholesalers and cable operators, including Charter; rapid technological change
and evolving industry standards in the markets for the company's services; and
those risks and uncertainties discussed in filings made by the company with
the Securities and Exchange Commission, including those risks and
uncertainties contained under the heading "Risk Factors" in the Company's
recent filings on Forms 10-K and 10-Q as filed with the Securities and
Exchange Commission.
High Speed Access Corp.
Condensed Consolidated Statements of Operations
For the three and nine months ended September 30, 2000 and 1999
(Dollars in thousands, except per share data)
Unaudited
Three Months Ended Nine Months Ended
2000 1999 2000 1999
Net revenue $4,282 $1,070 $9,033 $2,010
Costs and expenses:
Operating 18,133 7,194 48,923 13,344
Engineering 6,048 2,547 16,439 6,103
Sales and marketing 5,928 5,126 18,393 10,783
General and administrative
(excluding non-cash
compensation expense
from stock options) 6,520 3,019 15,660 6,666
Non-cash compensation
expense from stock
options 95 18 143 2,698
Amortization of
distribution
agreement costs 796 193 1,912 3,498
Total costs and expenses 37,520 18,097 101,470 43,092
Loss from operations (33,238) (17,027) (92,437) (41,082)
Investment income 1,544 2,824 5,535 3,684
Interest expense (544) (122) (1,564) (216)
Net loss (32,238) (14,325) (88,466) (37,614)
Mandatorily redeemable
convertible preferred
stock dividends -- -- -- (1,122)
Accretion to redemption
value of mandatorily
redeemable convertible
preferred stock -- -- -- (229,148)
Net loss available to
common stockholders $(32,238) $(14,325) $(88,466) $(267,884)
Basic and diluted net
loss available to
common stockholders
per share $(0.56) $(0.26) $(1.59) $(10.10)
Weighted average shares
used in computation of
basic and diluted net
loss available to common
stockholders per share 57,112,159 54,141,481 55,563,508 26,526,365
Supplemental Information:
Net loss before non-cash charges:
Net loss including
non-cash charges $(32,238) $(14,325) $(88,466) $(37,614)
Non-cash charges:
Compensation expense
from stock options 95 18 143 2,698
Amortization of
distribution
agreement costs 796 193 1,912 3,455
Amortization of
intangible assets 915 268 1,467 740
Net loss before
non-cash charges $(30,432) $(13,846) $(84,944) $(30,721)
Pro forma basic and
diluted net loss
before non-cash
charges $(0.53) $(0.26) $(1.53) $(0.75)
Weighted average shares
used in computation of
pro forma basic and
diluted net loss before
non-cash charges 57,112,159 54,141,481 55,563,508 41,203,105
(1) Assumes conversion of mandatorily redeemable convertible preferred
stock into common stock at the beginning of the period or at issuance,
whichever is earlier.
SOURCE High Speed Access Corp.
-0- 11/06/2000
/CONTACT: Investors, Stephen Calk, VP of Investor Relations,
720-922-2820, scalk@hsacorp.net, or Media, Katina Vlahadamis, Director of
Media Relations, 720-922-2823, kvlahadamis@hsacorp.net, both of High Speed
Access Corp./
/Photo: NewsCom: newscom.com
PRN Photo Desk, 888-776-6555 or 201-369-3467/
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