Sorry, that was incorrect..here is the full release.
WorldGate Communications, Inc. Announces First Quarterly Results Since Going Public
BENSALEM, Pa., May 5 /PRNewswire/ -- WorldGate Communications, Inc. (Nasdaq: WGAT - news) today reported revenues totaling $549,000 for the first quarter ended March 31, 1999, an increase of 17% over revenues of $468,000 for the fourth quarter ended December 31, 1998. The net loss for the first quarter was $8.3 million or $0.91 per share; in the fourth quarter 1998, the net loss was $12.0 million or $1.31 per share. The pro forma weighted average common shares outstanding were 15.5 million, and on a pro forma basis, net loss per share was $0.53 for the quarter. The pro forma results take into account the conversion of series A, B, and C preferred shares into common stock.
Total costs and expenses amounted to $6.7 million in the first quarter compared to $10.5 million in the last quarter of 1998. Cash, cash equivalents, and investments amounted to $4.8 million as of the end of the first quarter 1999. Capital expenditures in the first quarter of 1999 of $10,000 were employed for office equipment and computer systems. Capital resources increased dramatically recently as a result of the company's initial public offering which raised gross proceeds of $105 million.
WorldGate started commercial deployment of its WorldGate(SM) Service in the third quarter of 1998 and as of March 31, 1999, had 2,846 homes subscribed to its Internet TV Over Cable(SM) Service. The company has entered into multi-year agreements with seven cable television operators -- Bresnan Communications, Cable Bahamas, Charter Communications, Click!Network, Massillon Cable, Prestige Cable, and TVCable Ecuador -- which collectively with their affiliates represent approximately 3.7 million subscribers. In addition, WorldGate is in various stages of trials with numerous other US and international cable operators whose total subscriber base is approximately 32 million.
Hal Krisbergh, Chairman and CEO, commented, ''With twenty WorldGate systems in commercial deployment or trial on four continents at the end of the quarter, we are seeing significant evidence of the cable industry's enthusiasm for our service. Across a wide range of demographics and geographies, subscriber families are using the power of the cable infrastructure to log onto our service multiple times per week for its e-mail, Web surfing, and Channel HyperLinking(SM) capabilities.''
WorldGate provides a new television-based Internet service, the WorldGate Service, which offers cable television subscribers fast and easy access to the Internet through their television sets. The Service is designed to operate using standard advanced analog or digital cable set-top boxes, thereby eliminating the need for a personal computer or any additional set-top appliance. WorldGate Service subscribers enjoy access within seconds to full- featured Internet functionality on their televisions, as well as the ability to dynamically link from television programming to related Web sites through WorldGate's Channel HyperLinking technology. The Service is provided at low cost to subscribers and employs ultra thin-client network architecture (patents pending) that facilitates deployment, setup, and central system management, and allows for centrally administered upgrades to the system.
On April 15, 1999, WorldGate Communications, based in Bensalem, Pennsylvania, became a public company upon the completion of its initial public offering of 5 million shares. The stock is listed on Nasdaq under the symbol WGAT. The Web site for WorldGate can be found at www.wgate.com.
WorldGate, Channel HyperLinking, and Internet TV Over Cable are service marks of WorldGate Communications, Inc.
This press release may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions including, without limitation, expressions using the terminology ''may,'' ''will,'' ''believes,'' ''plans,'' ''expects,'' ''anticipates,'' ''predicts,'' ''forecasts,'' and expressions which otherwise reflect something other than historical fact are intended to identify forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
WORLDGATE COMMUNICATIONS, INC.
SUMMARY FINANCIAL DATA
Three Months Ended
March 31, March 31, Dec. 31,
1999 1998 1998
Statement of Operations Data:
Total revenues $549,000 $4,000 $468,000
Total costs and expenses 6,691,000 6,234,000 10,541,000
Loss from operations (6,142,000) (6,230,000) (10,073,000)
Other income and expenses (55,000) 183,000 26,000
Net loss (6,197,000) (6,047,000) (10,047,000)
Accretion on preferred stock (2,111,000) (1,410,000) (1,916,000)
Net loss available to
common stockholders $(8,308,000) $(7,457,000) $(11,963,000)
Net loss per common share
- basic and diluted $(0.91) $(0.82) $(1.31)
Weighted average common
shares outstanding
- basic and diluted 9,100,801 9,100,801 9,100,801
Pro forma net loss per
common share $(0.53)
Pro forma weighted average
common shares outstanding 15,544,138
March 31, March 31, Dec. 31,
1999 1998 1998
Balance Sheet Data:
Cash, cash equivalents,
and investments $4,784,000 $11,505,000 $368,000
Working capital (deficit) (773,000) 9,690,000 (3,250,000)
Total assets 10,292,000 13,377,000 5,621,000
Long - term debt 470,000 - 607,000
Total stockholders'
equity (60,449,000) (26,606,000) (52,241,000)
SOURCE: WorldGate Communications, Inc.
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