eSAT Inc. Announces Third-Quarter Results; Third-Quarter Results Reflect Strong Growth in Revenues Compared With Same Period One Year Ago
LOS ANGELES--(BUSINESS WIRE)--Nov. 16, 2000--eSAT Inc. (OTC:ASAT) (Frankfurt:ES8, Berlin:ES8), a leading broadband service provider offering and integrating satellite, wireless and managed network solutions, today announced financial results for the three-month period ended Sept. 30, 2000.
The company reported revenues from continuing operations of $1,439,185 for the quarter ended Sept. 30, 2000, as compared with $879,593 for the same period in 1999. Year-to-date revenues from continuing operations increased from $2,703,760 in 1999 to $3,806,481 in 2000. The loss from continuing operations totaled $2,270,024, or $0.10 loss per basic and diluted common share, for the quarter ended Sept. 30, 2000.
This compares with income of $11,609,332, or $0.57 and $0.47 per basic and diluted common share, respectively, in the same period one year ago. The results from continuing operations include the effect of a compensation income adjustment recognized under APB 25 in the amounts of $575,007 and $13,633,701 for the quarters ended Sept. 30, 2000, and 1999, respectively.
"Our financial results this quarter indicate that we managed to maintain a consistent growth in revenues compared to the same period in 1999," said Chet Noblett, chairman and chief executive officer. "In addition, we reduced our overall operating expenditures, due in part to the cost-cutting measures we implemented over the quarter.
"These actions resulted in a decrease in our general and administrative expenses in the third quarter of approximately $1.1 million, or 30%, as compared to second quarter, 2000. However, as described in our Form 10-Q for the third quarter ended Sept. 30, 2000, filed with the Securities and Exchange Commission (SEC), we will need additional financing before the end of the year, to permit the company to continue as a going concern.
"While we have a private equity credit arrangement in place, there is no assurance that we can meet the conditions precedent to further advances under that arrangement."
During the quarter, eSAT has:
-- Announced the completion of the successful alpha testing
of its proprietary technology called Virtual Onboard
Switching, which promises to increase the bandwidth
efficiency of satellite networks by more than 50 percent;
-- Completed an agreement with Wang Recovery Services where
Wang will market eSAT's satellite business continuity
services to its customer base;
-- Announced the appointment of Chester (Chet) Noblett Jr.,
chairman of eSAT, as interim chief executive officer for
the company, pending a search for a replacement for former
chief executive officer, Michael Palmer;
-- Opened a Vienna, Austria office to serve as a base of
operations for eSAT's continued growth in the European and
Asian markets;
-- Appointed Leon Shpilsky as senior vice president of
European operations; and
-- Signed a mutual cooperation agreement with satellite
provider, Intersputnik, to provide broadband Internet
infrastructure services in various regions served by
Intersputnik's global satellite network.
Noblett further noted: "Additionally, during the quarter we successfully completed the alpha testing phase of our proprietary Virtual Onboard Switching (VOS) technology, during which it demonstrated significant capabilities to improve the Internet performance of networks using geosynchronous earth orbit (GEO) satellites.
"This event, combined with our third quarter announcement of a mutual cooperation agreement with international satellite provider, Intersputnik, is an indication of the progress we are making in furthering our global expansion and achieving our long-term goal of becoming a leading worldwide provider of comprehensive Internet access services."
About eSAT Inc.
eSAT Inc. is a leading broadband service provider offering satellite, wireless and network management solutions. Through a series of key acquisitions, eSAT has created a suite of managed broadband connectivity services geared to clients servicing customers, both domestically and abroad. These offerings can be seamlessly combined to satisfy a wide-range of data delivery needs.
Through its PacificNet Inc. subsidiary, eSAT markets a proprietary "virtual" ISP (V-ISP) product and service, as well as the ability to provide both network management and data center services through its existing Class-A data facility in Universal City, Calif. eSAT's TERA-POINT wireless subsidiary offers proven fixed wireless solutions that address the last-mile broadband delivery market.
Through key vendor relationships, proprietary network management software and years of operational experience, TERA-POINT wireless can rapidly and cost-effectively deploy into a community wireless connectivity solutions and ISP services.
Additionally, eSAT provides Internet access and networking services through its Global Satellite Internet (GSI) gateway and its bi-directional Nexstream(TM) product. Nexstream is currently being targeted to rural customers and the business continuity (disaster recovery) market, while GSI is ideal for IP multicasting applications. For more information, go to our Web site at www.esatinc.com.
Certain statements in this news release may constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks (including the risk that the transaction will not be completed), uncertainties, and other factors, which may cause the actual results, performance, or achievement expressed or implied by such forward-looking statements to differ.
CONTACT:
eSAT Inc.
Mark Basile, 818/464-2675
Toll Free: 800/472-2638
Fax: 818/464-2799
E-mail: mbasile@esatinc.com
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