CAI Wireless Systems, Inc. announces 1996 third quarter and nine-month results.ALBANY, N.Y.--(BUSINESS WIRE)--Feb. 10, 1997--CAI Wireless Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM: CAWS CAWS Create A Wrestler (video games) CAWS Community Animal Welfare Society (Salt Lake City, Utah) CAWS Close Assault Weapon System CAWS Common Arrangement of Work Sections (engineering) ) ("CAI (1) (Computer-Assisted Instruction) Same as CBT. (2) See CA. CAI - Computer-Aided Instruction ") today announced results for the third quarter and nine months ended December 31, 1996. For the third quarter ended December 31, 1996, sales were $9,250,000, versus $12,952,000 for the comparable year-ago quarter, the decrease was primarily due to the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of two operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. with 1995 sales of $3,277,000, into a non-consolidated subsidiary, CS Wireless Systems, Inc. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. before depreciation and amortization for the most recent quarter increased $1,300,000 to $(3,328,000), versus $(2,028,000) for the comparable year-ago quarter operating loss, primarily due to increased costs to develop spectrum usage and costs associated with the new digital systems built in Boston and Norfolk, VA, while the same systems operated in both periods had a $255,000 reduction in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , primarily through reduced marketing, compared to the prior year quarter. Net loss for the most recent quarter was $(21,016,000) or $(0.60) per common share, versus $(14,586,000), or $(0.45) per common share, for the year-ago quarter. For the nine months ended December 31, 1996, sales increased 33% to $27,738,000 versus $20,843,000 for the nine months ended December 30, 1995, primarily due to systems acquired in September 1995. Operating loss before depreciation and amortization decreased one percent to $(8,266,000) versus $(8,341,000) for the comparable year-ago period. Net loss for the most recent nine months was $(57,493,000), or $(1.68) per common share, versus $(29,800,000) or $(1.40) per common share, for the nine months ended December 31, 1995. CAI currently operates six analog-based MMDS (Multichannel Multipoint Distribution Service or Microwave Multipoint Distribution Service) A digital wireless transmission system that works in the 2.2-2.4 GHz range. subscription video systems in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Rochester and Albany, NY, Philadelphia, PA, Washington DC, and Norfolk/Virginia Beach, VA and has a portfolio of MMDS channel rights in eight additional markets, including Long Island, Buffalo and Syracuse, NY, Boston, MA, Providence, RI, Hartford, CT, Baltimore, MD, and Pittsburgh, PA. In addition, CAI owns approximately 52% of CS Wireless Systems, Inc. ("CS Wireless"), which is jointly owned by Heartland Wireless Communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. , Inc. CS Wireless has, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis for announced transactions, approximately 6.0 million line-of-sight ("LOS") households and 65,600 subscribers in 11 markets located primarily in the Midwest and Southwest regions of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . - tables follow - -0-
CAI WIRELESS SYSTEMS, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended,
December 31, December 31,
1996 1995
Revenues $ 9,250,000 $ 12,952,000
Expenses:
Programming and license fees 4,130,000 5,145,000
Marketing 565,000 1,118,000
General and administrative 7,883,000 8,717,000
12,578,000 14,980,000
Operating loss before
depreciation (3,328,000) (2,028,000)
and amortization
Depreciation and amortization 8,179,000 11,732,000
Operating loss (11,507,000) (13,760,000)
Other Income (Expense):
Equity in net loss of (5,200,000) -
affiliate
Other income 1,203,000 3,155,000
Interest expense (10,012,000) (9,981,000)
(14,009,000) (6,826,000)
Loss before provision for
income taxes (25,516,000) (20,586,000)
Provision for income tax benefit 4,500,000 6,000,000
Loss before minority interest (21,016,000) (14,586,000)
Minority interest - -
Net Loss $(21,016,000) $(14,586,000)
Loss per common share $(0.60) $(0.45)
Weighted average common
shares 40,464,356 37,829,482
outstanding
-0-
CAI WIRELESS SYSTEMS, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Nine Months Ended,
December 31, December 31,
1996 1995
Revenues $ 27,738,000 $ 20,843,000
Expenses:
Programming and license fees 11,989,000 8,555,000
Marketing 1,791,000 2,874,000
General and administrative 22,224,000 17,755,000
36,004,000 29,184,000
Operating loss before
depreciation (8,266,000) (8,341,000)
and amortization
Depreciation and amortization 24,730,000 17,322,000
Operating loss (32,996,000) (25,663,000)
Other Income (Expense):
Equity in net loss of (13,000,000) -
affiliate
Other income 5,320,000 3,330,000
Interest expense (30,317,000) (13,789,000)
(37,997,000) (10,459,000)
Loss before provision for
income taxes (70,993,000) (36,122,000)
Provision for income tax benefit 13,500,000 6,000,000
Loss before minority interest (57,493,000) (30,122,000)
Minority interest - 322,000
Net Loss $(57,493,000) $(29,800,000)
Loss per common share $(1.68) $(1.40)
Weighted average common
shares 39,915,020 23,517,014
outstanding
CONTACT: Investor Relations Investor relations The process by which the corporation communicates with its investors. Contact: Jason Thompson Jason Thompson can refer to different people:
Lippert/Heilshorn & Associates 212/838-3777 or CAI WIRELESS SYSTEMS, INC. Company Contact: Jared Abbruzzese, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 518/462-2632 or Media Contact: Anne Inman LevLane Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most 610/667-7313 x 138 |
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