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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] -- Ignore unavailable to you. Want to Upgrade?

To: Bill Lotozo who wrote (189)	5/14/1999 12:58:00 AM
From: Obewon	Respond to of 1860

Of concern to all BBFW providers: techweb.com Obewon

To: Bill Lotozo who wrote (189)	5/19/1999 12:35:00 AM
From: SteveG	Read Replies (2) \| Respond to of 1860

Bill, we saw it trade there briefly this afternoon. I've followed WCII long and close enough to never say never, but I do think the next days/weeks will see some continued strength in WCII. I think if someone can add in the 40s, IMO they will not be disappointed in 6-12 months, certainly not with NXLK impressing funds on their roadshow, and their BBFW effort is significantly behind WCII's. It also doesn't hurt that Reingold suggested yesterday that TGNT (and IIXC) are likely takeover candidates. If this happened, this would be GREAT for WCII.

To: Bill Lotozo who wrote (189)	5/19/1999 1:10:00 AM
From: SteveG	Respond to of 1860

SSB on TGNT: TGNT--Reports Strong Q1'99 Results; Raising Target to $70 Salomon Smith Barney Thursday, May 13, 1999 ------------------------------------------------------------------------ --SUMMARY:--Teligent, Inc.--Telecommunications Services Teligent reported strong Q1'99 results which demonstrated management's ability to quickly & effectively roll out its mkts. TGNT launched 11 add'l mkts this year bringing the total at the end of Q1'99 to 26. Lines in service at the end of Q1'99 totaled 17,600 in only a few months in operation. TGNT is well on its way to reaching its goal of 40 markets and 75,000 lines in service by year end 1999. Revs of $1.5 mil & EBITDA losses of $78.3 mil were better than expected. TGNT had 800 bldgs on-net w/nearly 444 equipped w/fixed wireless, which expands its marketable base of customers. TGNT added more than 700 building leases & options, & had 60 base stations and 17 switches installed. Both operationally & financially, TGNT is executing quite solidly; we are raising target from $50 to $70 due to a reduction in its cost of capital. --EARNINGS PER SHARE-------------------------------------------------------- FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 12/98 EPS $(0.73)A $(1.12)A $(1.49)A $(2.00)A $(5.35)A Previous 12/99 EPS $(2.25)E $(2.35)E $(2.55)E $(3.05)E $(10.20)E Current 12/99 EPS $(2.05)A $(2.45)E $(2.65)E $(3.05)E $(10.20)E Previous 12/00 EPS $N/A $N/A $N/A $N/A $(10.00)E Current 12/00 EPS $N/A $N/A $N/A $N/A $(10.00)E Previous 12/01 EPS $N/A $N/A $N/A $N/A $N/A Current 12/01 EPS $N/A $N/A $N/A $N/A $N/A Footnotes: --FUNDAMENTALS-------------------------------------------------------------- Current Rank........:1S Prior:No Change Price (5/12/99).....:$55.88 P/E Ratio 12/99.....:N/Ax Target Price..:$70.00 Prior:50.00 P/E Ratio 12/00.....:N/Ax Proj.5yr EPS Grth...:0.0% Return on Eqty 98...:N/A% Book Value/Shr......:-1.14 LT Debt-to-Capital(a)N/A% Dividend............:$N/A Revenue (99)........:35.0mil Yield...............:N/A% Shares Outstanding..:61.2mil Convertible.........:No Mkt. Capitalization.:3327.8mil Hedge Clause(s).....:# Comments............: Comments............:(a) Data as of the most recently reported quarter. --OPINION------------------------------------------------------------------- Teligent reported strong Q1'99 results after the close yesterday which demonstrated management's ability to quickly and effectively roll out its markets. Teligent has already completed the launch of its services in 11 additional markets this year bringing total markets in service at the end of Q1'99 to 26. Lines in service at the end of Q1'99 totaled 17,600 in only a few months in operation. TGNT is well on its way to reaching its goal of 40 markets and 75,000 lines in service by year end 1999. Revenues and EBITDA losses were better than expected. Furthermore, based on our estimates TGNT will not need financing until 2001 since it had a cash position at the end of Q1'99 of $294 million and has not yet utilized its $800 million bank credit facility. Both operationally and financially, TGNT is executing quite solidly and we are raising our price target from $50 to $70 due to a reduction in TGNT's cost of capital. Financially, revenues for Q1'99 were $1.5 million while cash expenses were $79.8 million excluding a $7.9 million non-cash charge for stock-based compensation. EBITDA loss excluding the above-mentioned items was $78.3 million compared with our estimate of $83.1 million. Capital expenditures for the quarter were $57 million and consistent with previous guidance, capital expenditures are estimated to be $300 million in 1999. Teligent's target for 1999 revenues remains $35 million and EBITDA losses are still targeted at $350 million. Teligent's Q1'99 was quite impressive especially since it is Teligent's first full quarter of commercial service. By the end of 1998 TGNT launched commercial service in 15 cities and added 11 markets during Q1'99. These markets comprise more than 430 cities and towns with a combined population of more than 75 million. Teligent will install and equip a core number of point-to-multipoint base stations and customer building antennas in each market. The company has quickly launched its first 26 markets and at the end Q1'99 TGNT had 800 buildings connected to its network with nearly 444 of these buildings equipped with fixed wireless installations which expands its marketable base of customers. The company added more than 700 building leases and options bring the total number to more than 3,100 and is on track to meets its goal of 5,000 building leases or options by year end. Base stations or nodes at the end of Q1'99 totaled 60 and switches installed totaled 17 compared with 13 at year end 1998. At the end of Q1'99 TGNT had 17,600 lines in service compared with 9,000 at the end of 1998, providing multiple services to 35%-40% of lines in service (for example local/LD or local/data vs. LD only). In fact, 60% of lines in service were taking local, 60% took long distance and 20% of lines took data. Currently, TGNT's average lines per customer is 10-11, exceeding our estimate of 9.5 lines per customer. On a per building basis, TGNT currently has on average 1.5-2.0 customers per building with a long term goal of 3-4 customers per building. The average building that TGNT provides service to is in the 20-25 tenants per building range. As mentioned in previous notes, Teligent will provision more customer sites as sales are made and will not resell local services. If Teligent has a prospective customer and the customer's building is in Teligent's territory but it is not prepared for Teligent services, Teligent will presell long distance via its agreement with Frontier with local services to follow or Teligent could lease a T-1 which would be connected to its switch site (and thus the building will be on-net) in order to provide local, LD and Internet services. Teligent ended the quarter with 333 salespeople and nearly 1,900 total employees. The number of full-time equivalent sales people that were fully trained to sell TGNT services grew to 127 from 70-80 at the end of 1998. We expect TGNT will be able to meet its goal of 75,000 lines in service for the year especially as the number of fully trained salespeople, buildings on-net and markets in service grow. NET/NET: TGNT reported strong Q1'99 results and is well on its way to meeting its targets for the year with its fast-paced, aggressive market launches. We reiterate our Buy and our $70 price target.