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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Jay Lowe who wrote (5922)	3/3/1999 8:28:00 AM
From: John Carragher	Respond to of 29970

March 2, 1999 At Home Says It Plans Rollout Of TV-Based Internet Service Dow Jones Newswires SNOWBIRD, Utah -- At Home Corp. Chief Financial Officer Ken Goldman said Tuesday that he expects the company to roll out a television-based Internet service that will cost about $15 a month in the second half of the year. Separately, At Home declared a 2-for-1 stock split, pending shareholder approval. In trading on the Nasdaq Stock Market Tuesday, shares of At Home were up $11, or 10%, to $118.125. Speaking at the Hambrecht & Quist Planet.Wall.Street Internet conference, Mr. Goldman said the new service "will be used in a different way" than the company's traditional cable Internet-access service and will serve more as an introduction to the Internet "for the grandmothers of the world." At Home currently provides high-speed Internet access over cable-TV lines at around $40 a month. That price could fall in the future, as advertising and e-commerce revenue pick up. Mr. Goldman also said At Home's goal is to reach operating profitability by the fourth quarter of this year. The executive said he expects At Home to have more than $2 billion in revenue by the year 2002 and gross margins of 70% to 75%, up from its previous targets of 60% to 65% before the planned acquisition of Excite Inc. The executive said he expects operating income to be 30% to 35% of revenue by the year 2002, up from the company's previous target of 25% to 30% before the Excite deal. Despite small revenue and no profits, At Home has received a high valuation on Wall Street because of investor enthusiasm for broadband Internet services. Broadband, which can be delivered over cable-TV networks or digital phone lines, offers high-speed downloads of video and audio clips, digital photographs and other data-intensive services. At Home recently agreed to acquire portal site Excite in hopes that the high traffic on Excite's Web site will generate more customers for its Internet service. At Home appears well-positioned in the emerging broadband market; the company's largest shareholder is cable giant Tele-Communications Inc., which is in the process of being acquired by AT&T Corp. CS First Boston analyst Kristen Koh initiated coverage of At Home with a "buy" rating Tuesday. Ms. Koh said that because At Home has exclusive rights to provide cable-Internet access to 60 million homes, the company will likely "set the broadband Internet standard and become a market leader." At Home's competitors include Time Warner Inc.'s Road Runner, which provides high-speed access over its parent's cable network, and local phone companies offering DSL, or digital subscriber line, services. Return to top of page \| Format for printing Copyright © 1999 Dow Jones & Company, Inc. All Rights Reserved.