DSL.net Reports First Quarter Fiscal 2001 Results
Company Meets or Exceeds Its Prior Guidance On Each of Its Key Quarterly Metrics
NEW HAVEN, Conn.--(BUSINESS WIRE)--May 1, 2001--DSL.net, Inc. (NASDAQ NM: DSLN - news), a direct provider of high-speed Internet access solutions for small- and medium-sized businesses, today reported first quarter fiscal 2001 financial results.
Total revenue for the first quarter of 2001 was $8,822,000, representing a sequential increase of 24% compared with the quarter ended December 31, 2000 of $7,116,000, and more than a six-fold increase over first quarter 2000 revenue of $1,404,000. Recurring revenue for the first quarter of 2001 accounted for more than 90% of total revenue. The Company ended the first quarter with 16,275 installed DSL lines.
David F. Struwas, chairman and chief executive officer of DSL.net, stated, ``I am pleased to report a successful start to fiscal 2001. Once again, we delivered a strong quarter with excellent growth, further demonstrating the success of our unique business model and smart growth plan that we laid out in the fourth quarter of 2000.''
Struwas added, ``We continue to be very positive about the future, as demand from small- and medium-sized businesses has never been stronger. We are continuing to add to our line count every day. Our pricing has remained relatively stable, and we are maintaining an average monthly revenue per SDSL line of approximately $200. Given our strong belief in our current business plan and to fully exploit the opportunities in front of us, securing additional capital remains a top priority and we continue to engage in discussions with institutions concerning additional financing.''
Keith Markley, president and chief operating officer, said, ``In the first quarter, we made some significant enhancements to our service, as part of our managed growth strategy. We completed the deployment of a new IP (Internet Protocol) backbone architecture that will provide customers with superior performance and reliability in connecting to the Internet. We also recently augmented our suite of value added services by entering into a new agreement with LiveVault Corporation. This agreement will allow us to offer customers on-line, continuous back-up and recovery services for data stored on their servers.''
``We also continue to add to our customer base through our direct sales force, as well as through recently signed distribution agreements with Sabre Holding Corporation, a worldwide leader in travel marketing and distribution services, and VitalLink, a leading provider of real-time data services to premium food and beverage franchise companies. In addition, we took steps during the quarter to capture lines from companies that are exiting the DSL space. As part of this strategy, we recently signed a deal to migrate a portion of the DSL lines previously served by Zyan Communications. And, we continue to talk to other organizations concerning those lines that fit into our managed growth strategy.''
Markley concluded, ``From on operational perspective, we remain right on target. Our managed growth plan is enabling us to make steady progress toward our overall goal of achieving profitability. ''
Earnings before interest, taxes, depreciation, amortization, and non-cash stock compensation (EBITDA) for the first quarter of 2001 was negative $18,562,000, compared to negative $23,645,000 for the fourth quarter of 2000 and negative $15,876,000 for the first quarter 2000. The Company posted a net loss of $26,627,000 for the quarter, or $0.42 per share, compared to a net loss of $29,907,000, or $0.47 per share, for the fourth quarter 2000 and a net loss of $18,338,000, or $0.33 per share, for the first quarter 2000.
With regard to liquidity, the Company ended the first quarter with approximately $54.3 million in cash and cash equivalents. Based on current plans and projections, the Company currently expects that its cash resources will carry it into the fourth quarter of 2001. The Company is currently in the process of seeking additional financing. The results of these financing efforts will likely impact the Company's business plans and projections.
With respect to the second quarter of 2001, based on current plans and projections, the company currently expects to achieve the following:
-- 20,000 to 20,500 installed DSL lines at the end of the quarter
-- Revenues for the quarter to be between $10.0 and $10.5 million
EBITDA loss in the range of $15.7 to $16.7 million for the quarter
With respect to the full year 2001, based on current plans and projections, the Company currently expects to achieve the following:
-- 28,000 to 30,000 installed DSL lines at the end of the year
-- Revenues of $45 to $50 million for the year
-- EBITDA loss in the range of $55 to $60 million for the year
Capital expenditures expected to be approximately $10 to $12 million
DSL.net will host a conference call to discuss results for the quarter, as well as future plans and expectations, today at 5:00 P.M. Eastern time. To listen to the call over the Internet, please go to the Investor Relations section of www.dsl.net. To listen to the call via telephone, please dial 1-800-967-7143.
If you are unable to attend the live conference call, a replay will be available on DSL.net's web site (www.dsl.net). If you do not have Internet access, the replay of the call will be available by phone until 5:00 P.M. Eastern Time, May 4, by dialing 1-888- 203-1112 and entering the access code 685954. |
