Crosswave's Performance Continues to Improve in the 3rd Quarter of Fiscal Year 2002.Business Editors TOKYO & NEW YORK--(BUSINESS WIRE)--Feb. 11, 2003 Crosswave Communications 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 : CWCI CWCI California Workers' Compensation Institute ) ("Crosswave"), a pioneer in broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. in Japan, today announced its financial results for the third quarter of the fiscal year ending March 31, 2003 ("fiscal 2002"). All figures are unaudited and prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in 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. for interim financial information. On February February: see month. 12, 2003 at 9 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ), Crosswave's President, Koichi Koichi is a male Japanese given name. It can also be a surname. People with the given name Koichi
ever faithful to her mistress, especially in sorrow. [Ital. Opera: Puccini, Madama Butterfly, Westerman, 358] See : Loyalty , 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. Akio Onishi, and CFO See Chief Financial Officer. Yasuharu Fushimi Fushimi can refer to:
in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : www.cwc.co.jp/en/. 3Q02 Results Summary -- 3Q02 revenues grew steadily to JPY 4,900 million (US$41.3 million)(*1), increasing 13.5 % from JPY 4,317 million in 2Q02 and 65.3 % from JPY 2,964 million in 3Q01. The increase is mainly due to the growth in demand for Platform-type Network services. -- The number of customers contracting for Platform-type Network services increased to 348 in 3Q02 from 298 in the previous quarter. Revenue for the quarter from the flagship service recorded a 14.6% increase from 2Q02 to JPY 2,627 million (US$22.1 million). -- 3Q02 adjusted EBITDA (*2) continued to improve as losses decreased to JPY 1,439 million (US$12.1 million) from a loss of JPY 1,847 million in 2Q02. The Company expects its adjusted EBITDA to turn positive in the next fiscal year. -- 3Q02 net loss decreased to JPY 3,494 million (US$29.4 million) compared to JPY 3,821 million in 2Q02. The Company maintains its target to achieve positive net income for fiscal year 2004. (*1) The translations of Japanese yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. amounts into US dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 118.75 = $1, the approximate rate of exchange on December December: see month. 31, 2002. (*2) Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become represents operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (loss) before depreciation and amortization. Overview and Outlook Market Overview "Although Japan's general economy remains weak, the corporate sector has been very active in renewing IT systems and networks," said Koichi Suzuki, President of Crosswave. "Continued growth in broadband access See broadband and wireless broadband. penetration is rapidly expanding the borders of the corporate data communications market. Alternative network solutions and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. will be the key to growth in such a market, as we expect the outsourcing market to continue to grow significantly. In order to access this new market, it is critical to have the ability to provide not only the space but also the network, facilities and engineering resources to satisfy corporate outsourcing needs. Crosswave recently opened two major data center facilities in Japan which are designed and constructed for the complete relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of corporate IT functions to data centers on our backbone network A backbone network provides a path for the exchange of information between different LANs or subnetworks.[1] A backbone can tie together diverse networks in the same building, in different buildings in a campus environment, or over wide areas. . These new data centers offer corporate customers full scale outsourcing for their network operations based on our strategy for systems and network operation. We strongly believe that they will contribute to sustainable growth for Crosswave." Business Outlook "The potential market for Crosswave is enormous," said Akio Onishi, CEO of Crosswave. "The corporate data communications market has rapidly expanded to include mid-size and small-size corporations, who are now starting to use Wide-Area Networks Wide-area networks Communication networks that are regional, nationwide, or worldwide in geographic area, with a minimum distance typical of that between major metropolitan areas. Smaller networks include metropolitan and local-area networks. and systems outsourcing services. In addition, traditional services such as frame-relay services have been replaced by platform-type services like the Wide-area Ethernet Ethernet Telecommunications networking protocol introduced by Xerox Corp. in 1979. It was developed as an inexpensive way of sending information quickly between office machines connected together in a single room or building, but it rapidly became a standard computer Platform services. We plan to increase the size of our customer base by combining the provision of our own network infrastructure with various high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. . Crosswave launched a series of value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: options improving the manageability man·age·a·ble adj. That can be managed or controlled: manageable problems. man , quality and usability How easy something is to use. Both software and Web sites can be tested for usability. Considering how difficult applications are to use and Web sites are to navigate, one would wish that more designers took this seriously. See user interface and usability lab. of our Platform type Network services during the second half of 2002. We expanded the service line-up line-up Noun 1. people or things assembled for a particular purpose: Christmas TV line-up 2. of our Wide-area IP Platform Service, with the most recent service additions implemented in 3Q02. As a result, the size of our customer base has expanded in line with our expectations in 3Q02. We are confident that our business strategy is solid and will enhance our performance going forward." "Crosswave continued to improve its financial performance in 3Q02 despite the fact that sales growth was lower than expected as a result of the current difficult business environment," said Yasuharu Fushimi, CFO of Crosswave. "3Q02 revenues increased compared to 3Q01 and 2Q02 due to the expansion of usage by existing customers and acquisition of new customers. Our cost structure also improved, and our 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. steadily decreased as a result. We maintain our target that adjusted EBITDA will turn positive in Fiscal Year 2003." 3Q02 Operating Highlights Launch of new data center service, "Resource on Demand DC Service" In November November: see month. 2002, Crosswave announced that together with Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Initiative Japan Inc. ("IIJ IIJ Internet Initiative Japan IIJ Internet Initiative Japan Inc. (Internet Service Provider) IIJ Indo-Iranian Journal IIJ Is It Jazz (Boston band) "), the companies will provide a new data center service, "Resource on Demand DC Service". Locating data centers on the robust data communications networks that Crosswave operates enables corporate users to redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re their systems operations. Systems managers will be free from network provisioning Network provisioning or Service mediation are terms referring to provisioning of the customer’s services to the network elements, mostly used in the telecommunication industry. constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. once their entire system resides on our data center facility. Also, since our data centers are connected by the ethernet platform, they will provide backup support for one another. System managers will also be free from recovery site construction. Data storage, applications, servers and engineering capabilities will be provided on demand, limitlessly and in a timely manner, in this service framework. The service will be provided at Crosswave's newly opened data center facilities at Yokohama Yokohama (yō'kōhä`mä), city (1990 pop. 3,220,331), capital of Kanagawa prefecture, SE Honshu, Japan, on the western shore of Tokyo Bay. and Saitama Saitama (sī`tämä), prefecture (1990 pop. 6,405,319), E central Honshu, Japan. Urawa (the capital), Omiya, and Kawaguchi are the chief cities. as well as other centers. Start of Data Center Operations in Yokohama and Saitama On February 1, 2003, Crosswave celebrated the grand opening of its data center facilities in the cities of Yokohama and Saitama, Japan. In response to the growing awareness of the need to secure business continuity even when faced with disasters and breakdowns, the new data centers are seismic-structured with a detailed disaster recovery plan. New centers are designed to accommodate not only the systems space but also provide the office space to fully support the relocation of customers' systems operation requirement. New Service Line-up for "Wide-area IP Platform Service" Crosswave expanded the service line-up of its Wide-area IP Platform service on December 1, 2002. Crosswave's Wide-area IP Platform offers affordable ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line lines that can comprise a customer's national private network using our nationwide network connectivity. Even the smallest of offices can be now wired to a corporate network. Continuous Expansion of Customer Base The total number of our customers grew to 384 in 3Q02 increasing 22.7% from 313 in 2Q02. The majority of these customers use the Wide-area Ethernet Platform service and most of them concurrently use the value-added services. The new customers include leading Japanese companies This is a list of companies from Japan. Note that 株式会社 can be (and frequently is) read both kabushiki kaisha and kabushiki gaisha (with or without a hyphen). See that article for more details. in various sectors such as Kyushu Kyushu (ky  `sh), island (1990 pop. 13,064,955), c.13,760 sq mi (35,640 sq km), S Japan. Oil Co.,Ltd., Fuso Fuso or Fusō may refer to:
adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. ticketing and publishing company in Japan, and Soliton A laser pulse that retains its shape in a fiber over long distances. By generating the pulse at a certain frequency and at a certain power level, the pulse takes advantage of competing dispersion effects. As it travels, the pulse is lengthened and then shortened back to its original size. Systems K.K., one of the leading network integrators in Japan. Expansion of our customer base reflects the increasing demand for data communications infrastructure as well as Crosswave's reputation in the market. We expect our customer base to grow further due to the introduction of the newly completed data center services and the strong relationships with our sales partners including Hitachi Hitachi (hētä`chē), city (1990 pop. 202,141), Ibaraki prefecture, E central Honshu, Japan, on the Kashima Sea. The city is a leading producer of Japan's electrical equipment. , NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , NTT NTT Nippon Telegraph and Telephone Corporation NTT New Technology Telescope NTT National Technology Transfer, Inc NTT Name That Tune (TV game show) NTT National Tree Trust NTT Number Theoretic Transform Data, Fujitsu (company) Fujitsu - A Japanese elecronics corporation. Fujitsu owns ICL, Amdahl Corporation, and DMR. Home USA, Japan. , and IIJ.
Number of Customers
3Q02 2Q02 3Q01
----------------------------------------------------------------------
Total Number of Customers 384 313 191
----------------------------------------------------------------------
Number of Customers for Platform-type Network Services:
Number of customers contracting for service 348 298 179
Number of customers using service 314 276 163
----------------------------------------------------------------------
ADR Ratio ADR ratio The number of foreign shares represented by one American Depositary Receipt. Change Crosswave announced on January January: see month. 28, 2003, that an ADR ratio exchange is scheduled for February 18, 2003. The ratio will be changed from one ordinary share per two hundred ADRs to one ordinary share per twenty ADRs. Crosswave believes that the ratio change is in the best interest of its shareholders, as it will assist the Company in meeting its continued listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. on the NASDAQ National Stock Market. Discussion with PoweredCom Crosswave, together with IIJ, agreed with PoweredCom, Inc. ("PoweredCom") to extend the period for discussion regarding a possible integration of their businesses until the end of March 2003. 3Q02 Financial Results Revenues: 3Q02 total revenues amounted to JPY 4,900 million, an increase of 13.5% from 2Q02 and of 65.3% from 3Q01.
Revenue Breakdown (JPY million)
3Q02 2Q02 3Q01
----------------------------------------------------------------------
Total Network services 4,428 3,906 2,633
Platform-type Network services 2,627 2,292 1,212
----------------------------------------------------------------------
Data Center and related services 472 411 331
----------------------------------------------------------------------
Total Revenues 4,900 4,317 2,964
----------------------------------------------------------------------
Total Network services revenues increased to JPY 4,428 million in 3Q02 from JPY 3,906 million in 2Q02 and from JPY 2,633 million in 3Q01. The increase is due to the steady increase in sales of Platform-type Network services from JPY2,292 million in 2Q02 and JPY1,212 million in 3Q01 to JPY 2,627 million in 3Q02. We expect further growth of Wide-area IP Platform service which has been recently expanded its service line-up. Data Center and related service revenues increased to JPY 472 million in 3Q02 from JPY 411 million in 2Q02. The increase is due to the sale of equipment relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc data centers. The Company expects to see significant growth of racks and spaces in data centers starting in 4Q02 due to the opening of new data centers in Yokohama and Saitama. Operating costs operating costs npl → gastos mpl operacionales and expenses: The cost of data communication services increased slightly by 2.5% to JPY 5,650 million in 3Q02 from JPY 5,510 million in 2Q02. The sequential cost increase was primarily due to an increase in local access charges. Costs increased slower than revenues due to the shift to NNI (1) (Network-to-Network Interface) In ATM networking, the interface between two ATM devices (typically ATM switches). In frame relay networking, the interface between two separate frame relay networks. Contrast with UNI. (Network-Network-Interface) connections and the discounting of some local access lines, UNI (User-Network-Interface) lines, which Crosswave leases for back-up In cartography, an image printed on the reverse side of a map sheet already printed on one side. Also the printing of such images. use. Depreciation and amortization expenses slightly increased by 2.3% from 2Q02 to JPY 1,604 million in 3Q02. The sequential increase is mainly due to equipment purchases relating to the nationwide network. Sales and marketing expenses increased 22.3% from 2Q02 to JPY407 million in 3Q02. This increase was caused mainly by the increase in sales promotion-related expenses. General and administrative expenses decreased 12.1% from 2Q02 to JPY 282 million in 3Q02 primarily due to a decrease in outsourcing expenses. The increase in other expenses primarily reflected an increase in interest expenses. Net loss: Net loss for 3Q02 narrowed to JPY 3,494 million from JPY 3,821 million in 2Q02, an 8.5% improvement as compared to the previous quarter. The quarter over quarter improvement exceeded the quarter over quarter improvement of 7.8% for 2Q02. Adjusted EBITDA: Adjusted EBITDA for 3Q02 improved to a loss of JPY 1,439 million compared to a loss of JPY 1,847 million in 2Q02.
(Unit: JPY million)
3Q02 2Q02 1Q02 4Q01 3Q01
----------------------------------------------------------------------
Adjusted EBITDA -1,439 - 1,847 - 2,208 - 2,467 - 2,176
----------------------------------------------------------------------
Capital expenditures (*3): Capital expenditures for the quarter amounted to JPY 2,307 million, down from JPY 7,643 million in 2Q02. Capital expenditures were primarily for investment related to Wide-Area Platform services. (*3) Crosswave defines capital expenditures as expenditures for property and equipment and initial obligations under capital leases and installment loans Noun 1. installment loan - a loan repaid with interest in equal periodic payments installment credit consumer credit - a line of credit extended for personal or household use loan - the temporary provision of money (usually at interest) adjusted for sale and lease/installment back transactions. Company Information Crosswave offers broadband data communications services through Japan's first nationwide fiber-optic See fiber optics. network specifically designed for the high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. transmission of data traffic. Crosswave currently operates eight data centers nationwide. The Company was established in October October: see month. 1998 by Internet Initiative Japan Inc., Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) Corporation and Toyota Toyota (toi-ō`tə, Jap. tōyō`tä), city (1990 pop. 332,336), Aichi prefecture, central Honshu, Japan. It is a major industrial center dominated by the Toyota Motor Company, which produces passenger vehicles and auto parts there. Motor Corporation with the goal of providing advanced, end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. data communications services to customers in Japan and to take advantage of demand for broadband data communications networks. Crosswave's executive offices are located at Crest Yasuda Yasuda (安田) was formed by Yasuda Zenjiro. Yasuda founded the third national bank of Japan in 1876. It is currently operating as Fuji Bank Ltd. It is Japan's sixth largest bank. Bldg., 3-21, Kanda Kanda can mean:-
Statements made in this press release that state Crosswave's or its management's intentions, beliefs, expectations, or predictions for the future are 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 are based on Crosswave's and its management's current expectations, assumptions, estimates and projections about its business and the industry in which it operates. These forward-looking statements are subject to various risks, uncertainties and other factors that could cause Crosswave's actual results to differ materially from those contained in any forward-looking statements. These risks, uncertainties and other factors include: that we have incurred significant losses since our establishment in 1998 and expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. losses in the future: that we may need additional cash to further develop our network and fund our operations and if we are unable to obtain it, we will not be able to complete our network development plans as scheduled or we will be forced to modify or abandon some or all of our plans; that prices for data communication services we offer will continue to decline which may reduce our revenues or limit our ability to grow our revenues; and other risks referred to from time to time in Crosswave's filings with the Securities and Exchange Commission.
CROSSWAVE COMMUNICATIONS INC. Appendix 1
----------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
----------------------------------------------------------------------
For the Three Months Ended Dec 31, 2002, Dec 31, 2001 and Sep 30, 2002
(Expressed in Thousands of Japanese Yen (JPY) and U.S. Dollars (USD)
Except for Per Share and ADS Data) (1)
Year-over-year Comparison
--------------------------------------------------------
Dec 31, 2002 Dec 31, 2001
---------------------------- ---------------------------
% of % of
Total Total YOY
USD (1) JPY Revenues JPY Revenues Chg %
-------- ----------- -------- --------- --------- ------
Revenues:
Data
communication
services 41,263 4,900,014 100.0% 2,964,406 100.0% 65.3%
Cost and
expenses:
Cost of data
communication
services 47,578 5,649,918 115.3 4,551,945 153.5 24.1
Depreciation
and
amortization 13,504 1,603,634 32.7 997,992 33.7 60.7
Sales and
marketing 3,431 407,396 8.4 272,765 9.2 49.4
General and
admini-
strative 2,371 281,575 5.7 316,007 10.7 (10.9)
-------- ----------- -------- --------- --------- ------
Total cost and
expenses 66,884 7,942,523 162.1 6,138,709 207.1 29.4
-------- ----------- -------- --------- --------- ------
Operating gain
(loss) (25,621) (3,042,509) (62.1) (3,174,303) (107.1) (4.2)
-------- ----------- -------- --------- --------- ------
Other income
(expenses):
Gain (loss) on
foreign
currency
exchange (41) (4,916) (0.1) 398,788 13.5 (101.2)
Other (3,849) (457,102) (9.3) (192,291) (6.5) 137.7
-------- ----------- -------- --------- --------- ------
Income (loss)
before
minority
interests
and income
taxes (29,511) (3,504,527) (71.5) (2,967,806) (100.1) 18.1
-------- ----------- -------- --------- --------- ------
Minority
interests in
consolidated
subsidiaries 87 10,369 0.2 836 0.0 1,140.3
Income taxes - - - - - -
-------- ----------- -------- --------- --------- ------
Net
income(loss) (29,424) (3,494,158) (71.3%) (2,966,970)(100.1%) 17.8%
======== =========== ======== ========= ========= ======
Basic and
Dilutive Net
Loss Per
Share (6,961) (5,911)
Basic and
Dilutive Net
Loss Per ADS
Equivalent
(2) (34.81) (29.55)
Weighted
Average
Number of
Shares
outstanding 501,960 501,960
Weighted Average
Number of ADS
Equivalents
outstanding(2) 100,392,000 100,392,000
Sequential Comparison
-----------------------------------------------
Sep 30, 2002
-----------------------------------------------
% of
Total QOQ
JPY Revenues Chg %
------------------- --------------- -----------
Revenues:
Data
communication
services 4,316,974 100.0% 13.5%
Cost and
expenses:
Cost of data
communication
services 5,510,027 127.6 2.5
Depreciation
and
amortization 1,567,545 36.3 2.3
Sales and
marketing 333,242 7.8 22.3
General and
admini-
strative 320,245 7.4 (12.1)
------------------- --------------- ------------
Total cost and
expenses 7,731,059 179.1 2.7
------------------- --------------- -------------
Operating gain
(loss) (3,414,085) (79.1) (10.9)
------------------- --------------- -------------
Other income
(expenses):
Gain (loss) on
foreign
currency
exchange 14,425 0.4 (134.1)
Other (425,489) (9.9) 7.4
-------------------- --------------- ------------
Income (loss)
before
minority
interests
and income
taxes (3,825,149) (88.6) (8.4)
-------------------- --------------- ------------
Minority
interests in
consolidated
subsidiaries 4,439 0.1 133.6
Income taxes - - -
-------------------- --------------- ------------
Net
income(loss) (3,820,710) (88.5%) (8.5%)
==================== =============== ============
Basic and
Dilutive Net
Loss Per
Share (7,612)
Basic and
Dilutive Net
Loss Per ADS
Equivalent
(2) (38.06)
Weighted
Average
Number of
Shares
outstanding 501,960
Weighted Average
Number of ADS
Equivalents
outstanding(2) 100,392,000
Note (1): The translations of Japanese yen amounts into US dollar
amounts with respect to the three months ended Dec 31, 2002
are included solely for the convenience of readers outside
Japan and have been made at the rate of JPY 118.75 = $1, the
approximate rate of exchange on Dec 31, 2002.
Note (2): Each ADS is equal to 1/200th of a share of common stock.
The ADR ratio will be changed to 1/20th of a share of common
stock on February 18, 2003.
CROSSWAVE COMMUNICATIONS INC. Appendix 2
----------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
----------------------------------------------------------------------
As of Dec 31, 2002, Dec 31, 2001 and Sep 30, 2002
(Expressed in Thousands of Japanese Yen (JPY)
and U.S. Dollars (USD))(1)
Dec 31, 2002 Dec 31, 2001
------------------------------- ----------------------
USD (1) JPY % JPY %
----------- ----------- -------- ------------ --------
ASSETS
----------------
Current assets:
Cash and cash
equivalents 39,549 4,696,445 7.2 % 12,850,690 20.9 %
Accounts
receivable-net 19,742 2,344,398 3.6 1,511,975 2.5
Receivable of
proceeds from
sale and
lease back
transactions - - - - -
Other current
assets 9,349 1,110,204 1.7 1,403,454 2.2
----------- ----------- -------- ------------ --------
Total current
assets 68,640 8,151,047 12.5 15,766,119 25.6
Property and
equipment-net 463,160 55,000,292 84.1 43,826,407 71.3
Deposits and
other assets 18,771 2,229,059 3.4 1,911,499 3.1
----------- ----------- -------- ------------ --------
Total 550,572 65,380,398 100.0 % 61,504,025 100.0 %
=========== =========== ======== =========== =========
LIABILITIES AND
----------------
SHAREHOLDERS'
EQUITY
----------------
Current
liabilities:
Short-term
borrowings 8,421 1,000,000 1.5 - -
Capital lease
obligations-
current portion 44,719 5,310,343 8.1 3,005,415 4.9
Long-term debt-
current portion 8,663 1,028,718 1.6 292,612 0.5
Accounts payable 50,803 6,032,868 9.3 9,186,207 14.9
Accrued expenses 65,039 7,723,402 11.8 6,546,282 10.6
Other current
liabilities 5,735 681,084 1.0 750,765 1.2
----------- ----------- -------- ------------ --------
Total current
liabilities 183,380 21,776,415 33.3 19,781,281 32.1
Capital lease
obligations-
noncurrent 168,315 19,987,440 30.6 13,258,890 21.6
Long-term debt-
noncurrent 152,079 18,059,356 27.6 7,700,547 12.5
Other noncurrent
liabilities 733 87,054 0.1 36,728 0.1
----------- ----------- -------- ------------ --------
Total
liabilities 504,507 59,910,265 91.6 40,777,446 66.3
----------- ----------- -------- ------------ --------
Minority
interest 539 63,996 0.1 76,885 0.1
Shareholders'
equity:
Common stock 256,796 30,494,526 46.6 30,494,526 49.6
Additional paid-
in capital 156,150 18,542,796 28.4 18,317,795 29.8
Accumulated
deficit (367,461)(43,636,001) (66.7) (28,165,922)(45.8)
Accumulated
other
comprehensive
income 41 4,816 0.0 3,295 0.0
----------- ----------- -------- ------------ --------
Total
shareholders'
equity 45,525 5,406,137 8.3 20,649,694 33.6
----------- ----------- -------- ------------ --------
Total 550,572 65,380,398 100.0 % 61,504,025 100.0 %
=========== =========== ======== =========== =========
Note (1): The translations of Japanese yen amounts into US dollar
amounts with respect to Dec 31, 2002 are included solely for
the convenience of readers outside Japan and have been made at
the rate of JPY118.75 =$1, the approximate rate of exchange on
Dec 31, 2002.
Sep 30, 2002
------------------------------------
JPY %
---------------------- -------------
ASSETS
----------------
Current assets:
Cash and cash
equivalents 3,125,212 4.9 %
Accounts
receivable-net 2,597,139 4.1
Receivable of
proceeds from
sale and
lease back
transactions 259,254 0.4
Other current
assets 1,228,060 1.9
---------------------- -------
Total current
assets 7,209,665 11.3
Property and
equipment-net 54,255,695 84.9
Deposits and
other assets 2,418,693 3.8
---------------------- -------
Total 63,884,053 100.0 %
====================== ========
LIABILITIES AND
----------------
SHAREHOLDERS'
EQUITY
----------------
Current
liabilities:
Short-term
borrowings 500,000 0.8
Capital lease
obligations-
current portion 5,219,857 8.2
Long-term debt-
current portion 386,159 0.6
Accounts payable 4,733,405 7.4
Accrued expenses 7,341,689 11.5
Other current
liabilities 693,085 1.1
---------------------- -------
Total current
liabilities 18,874,195 29.6
Capital lease
obligations-
noncurrent 21,083,496 33.0
Long-term debt-
noncurrent 14,879,570 23.3
Other noncurrent
liabilities 72,707 0.1
---------------------- -------
Total
liabilities 54,909,968 86.0
---------------------- -------
Minority
interest 74,365 0.1
Shareholders'
equity:
Common stock 30,494,526 47.7
Additional paid-
in capital 18,542,796 29.0
Accumulated
deficit (40,141,843) (62.8)
Accumulated
other
comprehensive
income 4,241 0.0
---------------------- -------
Total
shareholders'
equity 8,899,720 13.9
---------------------- -------
Total 63,884,053 100.0 %
====================== ========
Note (1): The translations of Japanese yen amounts into US dollar
amounts with respect to Dec 31, 2002 are included solely for
the convenience of readers outside Japan and have been made at
the rate of JPY118.75 =$1, the approximate rate of exchange on
Dec 31, 2002.
CROSSWAVE COMMUNICATIONS INC. Appendix 3
---------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
-----------------------------------------------------------
For the Three Months Ended Dec 31, 2002, Dec 31, 2001 and Sep 30, 2002
(Expressed in Thousands of Japanese Yen
(JPY) and U.S. Dollars (USD)) (1)
Dec 31, 2002 Dec 31, 2001 Sep 30,
2002
---------------------- ---------- ----------
USD (1) JPY JPY JPY
--------- ------------ ---------- ----------
Operating Activities:
Net income (loss) (29,424) (3,494,158) (2,966,970)(3,820,710)
Depreciation and
amortization 13,504 1,603,634 997,992 1,567,545
Unrealized foreign
currency exchange
(gain) loss (21) (2,461) (399,279) (14,224)
Minority interest in net
income (loss) of
consolidated
subsidiaries (87) (10,369) (836) (4,439)
Decrease (increase) in
accounts receivable 2,128 252,741 364,249 (424,148)
Decrease (increase) in
other current assets 1,096 130,201 (282,588) 229,732
Decrease (increase) in
other assets (34) (4,050) - 31,637
Increase (decrease) in
accounts payable 9,493 1,127,274 321,088 160,304
Increase (decrease) in
accrued expenses and
other current liabilities 3,113 369,712 485,696 265,131
Increase (decrease) in
other noncurrent
liabilities 121 14,347 7,282 14,346
--------- ------------ ---------- ----------
Net cash provided by (used
in)
operating activities (111) (13,129) (1,473,366)(1,994,826)
--------- ------------ ---------- ----------
Investing Activities:
Purchase of property and
equipment (19,384) (2,301,849) (3,216,096)(6,751,496)
Decrease (increase) in
other assets, net 1,225 145,524 (376,659) 25,572
Proceeds from sale and
lease/installment back 13,924 1,653,473 1,899,896 3,772,921
--------- ------------ ---------- ----------
Net cash provided by (used
in)
investing activities (4,235) (502,852) (1,692,859)(2,953,003)
--------- ------------ ---------- ----------
Financing Activities:
Increase in short-term
borrowings, net 4,211 500,000 - 500,000
Proceeds from long-term
borrowings 25,263 3,000,000 - 2,000,000
Principal payments under
capital leases (11,095) (1,317,519) (713,857)(1,182,216)
Principal payments under
installment loans (841) (99,881) (76,149) (93,670)
--------- ------------ ---------- ----------
Net cash provided by (used
in)
financing activities 17,538 2,082,600 (790,006) 1,224,114
--------- ------------ ---------- ----------
Effect of Exchange Rate
Changes on Cash 39 4,614 398,257 16,851
--------- ------------ ---------- ----------
Net Increase (Decrease) in
Cash and Cash
equivalents 13,231 1,571,233 (3,557,974)(3,706,864)
--------- ------------ ---------- ----------
Cash and Cash equivalents
at Beginning of Period 26,318 3,125,212 16,408,664 6,832,076
--------- ------------ ---------- ----------
Cash and Cash equivalents
at End of Period 39,549 4,696,445 12,850,690 3,125,212
========= =========== =========== ==========
Note (1): The translations of Japanese yen amounts into US dollar
amounts with respect to the three months ended Dec 31, 2002
are included solely for the convenience of readers outside
Japan and have been made at the rate of JPY118.75 =$1, the
approximate rate of exchange on Dec 31, 2002.
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