BOSTON COMMUNICATIONS GROUP REPORTS YEAR END RESULTS.WOBURN, Mass.--(BUSINESS WIRE)--Feb. 12, 1997-- - Signs Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay ment n. Agreement With Western Wireless -
Boston Communications Group bcgi develops products and services that enable wireless operators to fully realize the potential of their networks. bcgi's Access Management, Billing, Payment and Network Solutions help operators rapidly deploy and manage innovative voice and data services for subscribers. , Inc. (Nasdaq:BCGI BCGI Boston Communications Group Inc ) today reported financial results for the fourth quarter and year ended December 31, 1996. Net revenues for the year ended December 31, 1996 increased 48% to $50,651,000 from $34,220,000 reported for the year ended December 31, 1995. Net income available to common shareholders for the year was $150,000, or $0.01 per share, compared with net income available to common shareholders of $1,893,000, or $0.21 per share reported in the prior year which included a one time income tax benefit of $1,300,000, or $0.14 per share. (Per share results for both periods reflect the accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of dividends on redeemable preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of $451,000 in 1996 and $950,000 in 1995.) The weighted average number of shares outstanding was 11,259,000 and 9,179,000 in 1996 and 1995, respectively. For the quarter ended December 31, 1996, the Company reported net revenues of $12,745,000, a 31% increase over $9,696,000 reported in the same period last year. The net loss available to common shareholders was $303,000, or $0.02 per share, compared with a net income of $1,682,000, or $0.18 per share reported in the same period last year which included a one time income tax benefit of $1,300,000, or $0.14 per share. (Per share results for 1995 reflect the accretion of dividends on redeemable preferred stock of $237,000.) The weighted average number of shares outstanding was 12,719,000 and 9,179,000 in 1996 and 1995, respectively. "We are very pleased to have maintained our significant revenue growth rate during our first year as a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. ," commented George Hertz hertz (hûrts) [for Heinrich R. Hertz], abbr. Hz, unit of frequency, equal to 1 cycle per second. The term is combined with metric prefixes to denote multiple units such as the kilohertz (1,000 Hz), megahertz (1,000,000 Hz), and gigahertz , President and Chief Executive Officer of Boston Communications. "In 1996 we maintained a strong leadership position in calling services and secured major contracts with significant carriers for the deployment of our prepaid C2C (Client to Client) An earlier term for peer-to-peer (P2P), in which one user communicates with another user without going through a server in between. See peer-to-peer. systems and for our carrier support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . Despite the lower-than-expected revenues from our ROAMERplus calling service and delays in carrier deployment of our prepaid calling service in the latter part of 1996, we are confident that we are taking the necessary steps to maintain our position as a major player in the wireless telecommunications market." Mr. Hertz continued, "Looking forward to 1997, we will continue to invest capital as we execute our strategy of securing a substantial market share in the prepaid wireless sector. We believe that this investment of resources is necessary to achieve our operating goals for the year. In a separate announcement, Boston Communications stated today that it has signed an agreement with Western Wireless Corp. (Nasdaq:WWCA WWCA Western Wireless Corporation (stock symbol) WWCA Western Washington Center for the Arts ) to provide prepaid services for their Personal Communications Service Des Moines (dĭ moin`), city (1990 pop. 193,187), state capital and seat of Polk co., S central Iowa, at the junction of the Des Moines and Raccoon rivers; inc. and Denver, servicing a population of 19.5 million. All the markets will have immediate access to service except Denver, which is expected to be launched during the second quarter. The signed agreement signifies the launch of Boston Communications' wireless prepaid service to the PCS-GSM arena. The Company has been a major provider of prepaid on the cellular side and has successfully applied its wireless prepaid platform to the PCS marketplace. "We are very excited to begin providing our prepaid calling service to Western Wireless PCS subscribers," commented Mr. Hertz. "This announcement represents a significant milestone in our Company's goal to become a leading provider of prepaid calling services in the PCS market." Based in Issaquah, Wash., Western Wireless Corp. is a leading provider of wireless communication services in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . It currently offers PCS services marketed under the VoiceStream-Wireless brand in six U.S. metropolitan markets and provides cellular service marketed under the CellularOne. brand in 15 western states. Western Wireless' combined cellular and PCS licenses, along with its investment in Cook Inlet Cook Inlet Inlet, Gulf of Alaska in the northern Pacific Ocean. Bounded by the Kenai Peninsula on the east, it extends northeast for 220 mi (350 km), narrowing from 80 to 9 mi (129 to 14 km). Anchorage is situated near its head. PCS, cover about 59 percent of the land in the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. . Boston Communications Group, Inc. develops, markets and provides innovative call processing In telecommunication, the term call processing has the following meanings:
This press release contains, in addition to historical information, forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including Mr. Hertz's comments regarding steps being taken to maintain the Company's position and the Company's belief that the investment of resources in the prepaid wireless sector is related to the achievement of its operating goals for the year. Such statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Among the important factors that would cause actual results to differ materially from those indicated by such forward-looking statements are significant decreases in business from major customers, declines in demand for the Company's services, lack of acceptance of the prepaid wireless service, general economic conditions, and the risk factors detailed from time to time in the Company's periodic reports and registration statement filed with the Securities and Exchange Commission. -0-
BOSTON COMMUNICATIONS GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Year Ended
12/31/96 12/31/95 12/31/96 12/31/95
Service revenues:
Calling service revenues $7,821 $6,874 $32,234 $25,446
Carrier support service
revenues 2,991 2,822 13,413 8,774
Prepaid network services 201 --- 312 ---
Prepaid and other system
revenues 1,732 --- 4,692 ---
Total net revenues 12,745 9,696 50,651 34,220
Total operating expenses 13,485 8,919 50,041 32,091
Operating income (loss) (740) 777 610 2,129
Interest (income) expense, net (331) 53 (591) 150
Income (loss) from continuing
operations before income taxes (409) 724 1,201 1,979
Income tax expense (benefit) (106) (1,195) 600 (1,030)
Income from continuing
operations (303) 1,919 601 3,009
Loss from discontinued
operations --- --- --- (166)
Net income (loss) $(303) $1,919 $601 $2,843
Accretion of dividends on
redeemable
preferred stock --- (237) (451) (950)
Net income (loss) available to
common shareholders $(303) $1,682 $150 $1,893
Net income (loss) available to
common shareholders per
common share:
Continuing operations $(0.02) $0.18 $0.01 $0.22
Net income (loss) $(0.02) $0.18 $0.01 $0.21
Shares used in computing net income
(loss) per common share 12,719 9,179 11,259 9,179
-0-
SELECTED CONSOLIDATED BALANCE SHEET DATA
(in thousands)
12/31/96 12/31/95
Cash and short-term investments $21,421 $ 253
Property & equipment (net) $12,906 4,884
Total assets 51,959 13,614
Redeemable preferred stock --- 15,896
Shareholders' equity (deficit) 42,893 (8,698)
-0-
CONTACT: Boston Communications Group, Inc. Fritz fritz n. Informal A condition in which something does not work properly: Our television is on the fritz. [Perhaps from German Fritz von Mering Vice President Finance 617-692-7000 or Morgen-Walke Associates Andrea Kaimowitz/Cindy Miller Press: Lee Foley 212-850-5600 |
|
||||||||||||||

ment n.
Printer friendly
Cite/link
Email
Feedback
Reader Opinion