DSL.net Reports Third Quarter Results; Management Forecasts Fourth Quarter.Business Editors NEW HAVEN New Haven, city (1990 pop. 130,474), New Haven co., S Conn., a port of entry where the Quinnipiac and other small rivers enter Long Island Sound; inc. 1784. Firearms and ammunition, clocks and watches, tools, rubber and paper products, and textiles are among the many , Conn.--(BUSINESS WIRE)--November 8, 2000 DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary .net, 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: DSLN), a direct provider of high-speed 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. and 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 solutions, today reported third quarter financial results for the periods ended September 30, 2000. DSL.net uses digital subscriber line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (DSL) technology to provide high-speed Internet See broadband. connectivity and online services directly to small and medium-sized businesses, primarily located in second and third tier markets across 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. . Total revenue for the third quarter of 2000 was $5,861,000, representing a sequential increase of 55% when compared with the quarter ended June 30, 2000. The company ended the quarter with 9,208 DSL lines installed. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue for the quarter again accounted for a very significant percentage of the total revenues, at more than 90%. Operational central offices increased to 502 at September 30, from a count of 440 at June 30. At October 31, operational central offices totaled 540. David F. Struwas, chief executive officer of DSL.net, stated, "We are disappointed in this quarter's results. A portion of our difficulty was related to decisions we made against the backdrop Backdrop may refer to:
"As a consequence, we are currently forecasting for the fourth quarter that revenues will be in the range of $7.0M to $7.5M, and 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 loss will be approximately $25M to 26.5M," Struwas added. "We currently expect to end the year with 11,200 to 11,700 DSL lines installed, and approximately 600 central offices built. We have now begun a series of campaigns that will bring our marketing activities back to previous levels. With territory assignments finalized See finalization. , we believe our sales force is now better prepared to produce greater results in the future." Mr. Struwas continued, "Despite the challenging DSL environment, opportunities exist for DSL.net to acquire lines from ISP's that are in financial distress Financial distress Events preceding and including bankruptcy, such as violation of loan contracts. . We believe this could offer a cost-effective means of growing our aggregate line count in an expeditious ex·pe·di·tious adj. Acting or done with speed and efficiency. See Synonyms at fast1. ex manner. However, we will proceed with the objective to balance the cost of these potential acquisitions with a focus on aggressive cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. ." Earnings before interest, taxes, depreciation, amortization, and non-cash stock compensation (EBITDA) were negative $24,854,000 for the third quarter of 2000, compared to negative $23,764,000 for the second quarter of 2000, reflecting success in containing operating costs operating costs npl → gastos mpl operacionales , despite the effect of increased network facilities costs for central offices added in the second and third quarters. The company posted a net loss of $30,231,000 for the quarter, or $0.48 per share, compared to a net loss of $27,287,000, or $0.45 per share, in the second quarter of 2000. Total revenue for the first nine months of 2000 totaled $11,384,000, with a related EBITDA loss for the period of $64,493,000. The net loss for the nine months ended September 30, 2000 was $75,856,000, or $1.27 per share, based on 59.8 million weighted average shares outstanding. With regard to liquidity, the company ended the third quarter with nearly $109M in available cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . The following highlights occurred during the third quarter: -- DSL.net and IBM announced an agreement that made DSL.net's broadband access part of the IBM Small Business WebConnections package -- DSL.net finalized Electronic Data Interfaces (EDI) with most of the major LECs, to speed both address verification and order processing. -- DSL.net has completed deployment of a new-generation IP backbone that is a combination of private and public peering and transit, which will deliver superior performance and cost savings. We are also announcing some changes to our management team. Paul Sun will be leaving his post as Chairman, and will remain a member of our Board of Directors. Dave Struwas will assume the role of Chairman, as well as Chief Executive Officer. These adjustments pave PAVE Cardiology A clinical trial–Post AV Node Ablation Evaluation the way for Keith Markley to join DSL.net as President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . DSL.net will host a conference call to discuss results for the quarter as well as future expectations today at 5:00 P.M. Eastern time / 2:00 P.M. Pacific time. To listen to the call over the Internet, please go to www.vcall.com, and then enter ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors (DSLN).To listen to the call via telephone, please dial 1-800-946-0715, and enter the access code 477004. If you are unable to attend the live conference call, a replay will be available on DSL.net's web site (www.dsl.net) for 72 hours after the call. If you do not have Internet access See how to access the Internet. , the replay of the call will be available by dialing 1-888-203-1112 and entering the access code 477004. About DSL.net Based in New Haven, Conn., DSL.net, Inc. is a high-speed data communications and Internet access provider See ISP. (networking, company) Internet Access Provider - (IAP) A company or other origanisation which provides access to the Internet to businesses and/or consumers. that uses digital subscriber line technology to provide high-speed Internet access solutions to small and medium-sized businesses, primarily in second and third-tier cities throughout the United States. DSL.net allows smaller businesses to migrate their operations online and more equally compete in the Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . As of September 30, 2000, DSL.net had provided service or had installed equipment in over 350 cities. For more information regarding DSL.net solutions and services visit www.dsl.net, e-mail info@dsl.net, or call 1-877-DSL-NET1. 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. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, among others, statements regarding DSL.net's forecasts of financial results and DSL line and central office installations for the quarter ending December 31, 2000, opportunities for acquiring DSL lines from Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. and improved production from DSL.net's sales force. These statements and other forward-looking statements are subject to a variety of risks and uncertainties, many of which are beyond DSL.net's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things, (i) fluctuations in DSL.net's quarterly operating results, which could adversely effect the price of its common stock; (ii) DSL.net's unproven unproven Dubious, nonscientific, not proven, quack, questionable, unscientific adjective Relating to that which has not been validated by reproducible experiments or other scientific methods for determining effect or efficacy business model, which may not be successful; (iii) DSL.net's ability to execute its business plan in a timely manner to generate the forecasted financial results, which may not be achieved if DSL.net's sales force is not able to generate sufficient sales to customers or if DSL.net is not able to install and commence service for customers in a timely manner; (iv) DSL.net's need for additional funds during 2001, which may not be available on acceptable terms or at all, which could adversely impact DSL.net's ability to implement its business plan; (v) risks associated with acquisitions, including difficulties in identifying and completing acquisitions, integrating acquired businesses or assets and realizing the revenue, earnings or synergies anticipated from any acquisitions; (vi) the industry-wide trend toward free installation of service, which adversely impacts DSL.net's revenue; (vii) the challenges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the timely installation of service for customers, including DSL.net's dependence on traditional telephone companies to provide acceptable telephone lines in a timely manner; (viii) the need for DSL.net to achieve sustained market acceptance of its services at desired pricing levels; (ix) competition; (x) DSL.net's extremely limited operating history, which makes it difficult to evaluate its business and prospects; (xi) the difficulty of predicting the new and rapidly evolving high-speed data communications industry; (xii) DSL.net's ability to negotiate, enter into and renew interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. and collocation collocation - co-location agreements with traditional telephone companies; (xiii) regulatory, legislative, and judicial developments, which could adversely affect the way DSL.net operates its business; and (xiv) DSL.net's ability to recruit and retain qualified personnel, establish the necessary infrastructure to support its business, and manage the growth of its operations. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . DSL.net undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or otherwise. For additional information regarding these and other risks faced by DSL.net, see the disclosure contained under "Risk Factors" in DSL.net's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999, which has been filed with the Securities and Exchange Commission. DSL.net's authority to provide certain regulated services is held by its subsidiary companies. DSL.net is a trademark of DSL.net, Inc. Other product and company names herein may be trademarks of their respective owners.
DSL.Net
Statement of Operations
(Unaudited)
Three Months Ended
-------------------
September 30, September 30,
2000 1999
---- ----
Revenue $ 5,860,857 $ 317,492
------------- -----------
Operating expenses:
Network and operations 23,328,424 2,274,605
Sales and marketing 6,895,667 2,092,383
General and
administrative 6,714,222 1,391,064
Stock compensation 486,353 796,109
------------- -----------
Total operating
expenses 37,424,666 6,554,161
------------- -----------
Operating loss (31,563,809) (6,236,669)
------------- -----------
Interest expense (income), net (1,334,564) (620,341)
Other expense (income), net 2,110 5,156
------------- -----------
Net loss $ (30,231,355) $ (5,621,484)
============== =============
Exchange of Preferred Stock - -
--------------- --------------------
Loss applicable to
common stock $ (30,231,355) $ (5,621,484)
============== =============
Net loss per common share -
basic and diluted $ (0.48) $ (0.66)
Shares used in computing
net loss per share 62,373,498 8,478,493
Other data:
EBITDA (a) $ (24,853,975) $ (4,950,605)
============== =============
Three
Nine Months Ended Months Ended
------------------ ----------
September 30, September 30, June 30,
2000 1999 2000
---- ---- ----
Revenue $ 11,383,789 $ 501,665 $ 3,785,626
------------- ----------- ------------
Operating expenses:
Network and
operations 54,023,710 3,757,233 19,327,314
Sales and marketing 19,697,942 3,327,972 7,814,040
General and
administrative 16,066,477 2,945,077 5,648,314
Stock compensation 2,679,313 3,412,914 664,524
---------- ---------- ----- -------
Total operating
expenses 92,467,442 13,443,196 33,454,192
----------- ----------- ----------
Operating loss (81,083,653) (12,941,531) (29,668,566)
------------ ------------ ------------
Interest expense
(income), net (5,228,129) (827,956) (2,372,340)
Other expense
(income), net 748 5,156 (9,593)
------------ ------------ ------------
Net loss $ (75,856,272) $(12,118,731) $ (27,286,633)
============== ============= ==============
Exchange of
Preferred Stock - 11,998,000 -
------------ ------------ ------------
Loss applicable to
common stock $ (75,856,272) $(24,116,731) $ (27,286,633)
============== ============= ==============
Net loss per common
share - basic and
diluted $ (1.27) $ (3.87) $ (0.45)
Shares used in computing
net loss per share 59,784,516 6,230,836 61,257,149
Other data:
EBITDA (a) $ (64,493,313) $ (8,802,335) $ (23,763,520)
============== ============= ==============
(a) EBITDA is defined as earnings (losses) before interest, taxes,
depreciation, amortization and non cash stock compensation.
DSL.Net
Selected Balance Sheet Data
($ in 000's)
(unaudited)
September 30, December 31,
2000 1999
----- ----
Cash, cash equivalents and $108,977 $79,452
marketable securities
Net property and equipment 85,652 32,665
Total assets 225,293 117,632
Current liabilities 35,615 14,841
Long-term obligations 10,848 2,058
Stockholders' equity 178,830 100,733
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion