Although TGNT's results are posted on the WinStar thread, thought it should be here also. What are "Management fees and other services provided to members"? That is by far the bulk of their total revenue with only $ 32,745 in revenue for wireless communications services for both the quarter and THE WHOLE YEAR!
Wednesday March 11, 6:02 pm Eastern Time
Company Press Release
SOURCE: Teligent, Inc.
Teligent Reports 1997 Financial Results, Setting the Stage for 1998 Market Entry
VIENNA, Va., March 11 /PRNewswire/ -- Teligent, Inc. (Nasdaq: TGNT - news), an integrated communications company, today announced financial results for 1997, reflecting a year of development that sets the stage for the launch of local, long distance and high-speed Internet service in at least ten markets in 1998.
''We are building the necessary foundation to support our aggressive build out schedule,'' said Teligent Chairman and CEO Alex J. Mandl. ''We're deploying the most advanced digital, local communications networks in the country to bring real competition to the local marketplace.''
Teligent reported a net loss for the year ending December 31, 1997 of $138.1 million on revenue of $3.3 million. Approximately $84 million of the loss was attributable to a non-cash, stock-based compensation charge associated with the conversion of company appreciation rights into stock options at the time of Teligent's initial public stock offering last November. The net loss for the fourth quarter was $59.2 million on revenue of approximately $400,000. Approximately $32.1 million of the fourth quarter loss resulted from the non-cash, stock-based compensation charge.
''We're very pleased with our progress to date,'' Mandl said. ''The last 18 months have been a very important time for Teligent. We assembled a top management team, we raised or received commitments for $1.6 billion in capital, we met key regulatory goals, we are putting in place key systems and infrastructure and we initiated construction of our local communication networks. We've come a long way in a very short time,'' Mandl added.
''The coming year looks even more promising,'' said Teligent President and Chief Operating Officer Kirby G. Pickle Jr. ''By the end of 1998, we plan to have resources deployed in thirty top markets, with at least ten of those markets fully commercial. Our equipment delivery schedule is on target, and we expect on-time deployment of our point to multi-point digital fixed-wireless networks.''
Markets currently scheduled for commercial launch in 1998 are Austin, Chicago, Dallas, Denver, Houston, Los Angeles, Orlando, San Antonio, Tampa and Washington, D.C.
''As we build out our 74 markets, which cover half the nation's businesses, the benchmark for Teligent's success in 1998 is deploying key resources, including employees and facilities, that will allow the company to scale rapidly,'' Pickle added. ''We will measure our progress in 1998 by the markets we launch, the people we hire, the switches we install, the base stations we deploy, and the customer buildings we serve. We are making significant progress in all of these critical areas.''
To date, Teligent has:
-- Ramped up hiring, bringing the total number of Teligent employees to
more than 400.
-- Secured authority to offer competitive local telephone service in 42
markets.
-- Signed interconnection agreements with Ameritech (Illinois); Bell
Atlantic (D.C., Virginia and Maryland); BellSouth (Georgia and
Florida); Pacific Bell (California); Southwestern Bell (Texas); and
GTE (Virginia, Florida, Texas and California).
-- Ordered 12 Nortel DMS-500 switches, including those for its initial 10
markets. Five are currently being installed.
-- Begun construction of its Network Operations Center in Northern
Virginia.
-- Selected key base station sites in its initial 10 markets.
-- Identified vendors for core operating systems, including billing,
customer care and network infrastructure.
-- Concluded the $100 million equity investment by Nippon Telegraph and
Telephone Corp. [NYSE:NTT - news] and finalized the NTT technical services agreement.
Tetsuro Mikami, a senior NTT executive, joined Teligent's board of
directors, as did Donald H. Jones, a Pittsburgh-based investor.
''With the recently completed senior discount note transaction, the company has raised or secured commitments for $1.6 billion in financing,'' said Teligent Senior Vice President and Chief Financial Officer Abraham L. Morris. ''This provides sufficient capital for Teligent's current business plan through the year 2000.''
The company raised $136 million gross proceeds from its initial public stock offering last November; an additional $60 million equity contribution from its founding partners; $100 million in a strategic equity investment from NTT; $300 million gross proceeds from the sale last November of senior notes due 2007; $250 million gross proceeds from the sale last month of senior discount notes due 2008; and $780 million in a vendor financing commitment by Nortel.
Morris also said that Teligent expects that its operating and capital expenditures will increase significantly in 1998 as the company moves forward with network construction and deployment. ''The increased expenditures will cover our 10 announced markets for 1998 and also allow us to be working in 20 additional markets by year end in order to meet our launch goals for 1999,'' Morris said.
Using advanced digital wireless technology, Teligent will provide local, long distance, high-speed data and Internet services to customers by placing small antennas on top of customer buildings. The customer antennas will send digital voice, data and video signals to a Teligent base station, where the signals will be routed to a Teligent switch. The switch will route the signals to the local telephone network, a long distance network or the Internet.
Teligent is a registered trademark.
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including but not limited to economic, key employee, competitive, governmental and technological factors affecting the company's growth, operations, markets, products, services, licenses and other factors discussed in the company's filings with the Securities and Exchange Commission. Actual results may vary materially due to these and other risks and uncertainties.
TELIGENT, INC.
(a development stage company)
STATEMENTS OF OPERATIONS
Quarter Year
Ended Ended
December 31, 1997
Revenues:
Management fees and other
services provided
to members $364,466 $3,278,254
Wireless communication
services 32,745 32,745
Total revenues 397,211 3,310,999
Costs and expenses:
Cost of services 1,911,035 4,785,589
Sales, general and
administrative
expenses 17,914,699 43,465,732
Stock-based
compensation 32,107,143 84,042,581
Depreciation and
amortization expense 6,147,563 6,453,632
Total costs and
expenses 58,080,440 138,747,534
Loss from operations (57,683,229) (135,436,535)
Interest and other income 3,136,676 3,241,837
Interest expense (4,681,654) (5,859,457)
Net loss $(59,228,207) $(138,054,155)
Pro forma net loss per share $(1.21) $(2.94)
Pro forma weighted
average common shares
outstanding 49,007,709 46,950,860
SELECTED FINANCIAL AND OTHER DATA:
Cash and cash
equivalents $424,900,715 $424,900,715
Total assets 596,380,268 596,380,268
Total stockholders'
equity (deficit) 274,146,222 274,146,222
Cash used in operations (11,919,947) (34,427,626)
Modified EBITDA (1) (18,678,523) (41,940,322)
Number of employees,
end of period 221 221
(1) Modified EBITDA (earnings before interest, taxes, depreciation and
amortization) excludes non-cash charges for stock-based compensation
and for non-cash amortization of notes receivable of $750,000 and
$3.0 million for the quarter and year ended December 31, 1997,
respectively.
SOURCE: Teligent, Inc. |
