Someone correct me if this is wrong, but i believe it was posted somewhere back that the Teleport ATT deal values Teleport at something over 20 times REVENUE. If WCII were valued on this basis based on 4 th qtr. estimated revenue annualized, i think it would result in a value of around $58 per share. Also, wanted to post the WCII press release here for all to see.
Regards to all,
Dub
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Thursday January 8, 5:10 pm Eastern Time
Company Press Release
Winstar Accelerates and Expands CLEC Rollout Plan
Broadband Network and CLEC Sales Organization Will Reach 30-Market Goal One Year Ahead of Schedule
NEW YORK--(BUSINESS WIRE)--Jan. 8, 1998-- EBITDA Losses To Decline Starting in First Quarter 1998
Winstar Communications, Inc. (NASDAQ-WCII) today announced that the nationwide deployment of its competitive local exchange carrier (CLEC) operations will be accelerated in 1998, enabling the company to attain its initial 30-market goal by year-end, one year ahead of schedule. The original timetable called for WinStar's CLEC business to cover 20 markets by the end of 1998 and 30 markets by the end of 1999.
''By expanding our CLEC operations at an accelerated pace, we will grow the company faster and more profitably,'' said William J. Rouhana, Jr., Chairman and Chief Executive Officer of WinStar. ''We are pleased to be able to speed our response to the growing demand for broadband connectivity, which WinStar is uniquely qualified to provide with its national Wireless Fiber(SM) network. At the same time, the acceleration of our nationwide deployment should result in far higher revenues and EBITDA in the year 2000 and beyond than would have been attained through the more gradual expansion called for in our original plan.''
Rouhana noted that the faster deployment could be accomplished while still meeting the company's goal of having EBITDA losses peak in the 1997 fourth quarter. Quarterly EBITDA losses in 1998 are expected to gradually decline, with WinStar reaching the EBITDA breakeven point by the end of 1999, as originally scheduled.
Citing factors making the accelerated buildout possible, Rouhana said: ''We're entering each market more cost-effectively, with less negative EBITDA, by better synchronizing the deployment of our network infrastructure and sales force. In addition, we're realizing benefits from our recently announced acquisitions. We're ahead of schedule in integrating seven Lucent 5ESS-2000 switches that we acquired from U.S. One Communications, and our pending acquisition of MIDCOM Communications gives us an established sales presence in four of the markets where we'll be activating switches early this year.''
Rouhana also said WinStar was positioned to move further ahead in 1999, expanding its network to the country's 40 largest telecommunications markets. Proceeds from WinStar's recent $175 million preferred stock offering will assist the company in funding a portion of its more aggressive business plan, he added.
Currently marketing its CLEC services in 15 large metropolitan areas, WinStar will expand its switched network during the early part of 1998 to reach 21 cities: New York, Chicago, Los Angeles, Boston, San Diego, Newark, Washington, D.C., Dallas, Fort Worth, Atlanta, Houston, Minneapolis, San Francisco, Tampa, Philadelphia, Kansas City, Baltimore, Columbus, Seattle, Denver and Phoenix. An additional nine markets will be added to WinStar's switched network prior to year-end: Milwaukee, Stamford, Miami, Detroit, St. Louis, Cleveland, Oakland, Orange County, Calif., and Oak Brook, Ill. This 30-market territory will be served by a total of 23 WinStar switches.
WinStar Communications, Inc. is a national local communications company, serving business customers, long distance carriers, fiber-based competitive access providers, mobile communications companies, local telephone companies, and other customers with broadband local communications needs. The company provides its Wireless Fiber(SM) services using its licenses in the 38 GHz spectrum. The company also provides long distance, Internet and information services.
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties which are described in the company's SEC reports, including the 10-K for the period ended December 31, 1996, and the 10-Q for the period ended September 30, 1997.
WinStar is a registered trademark, and Wireless Fiber is a service mark of WinStar Communications, Inc. |
