EchoStar Communications Corporation reports fourth quarter increase in revenues of 33%.ENGLEWOOD Englewood (ĕng`gəlw  d).1 City (1990 pop. 29,387), Arapahoe co., N central Colo., on the South Platte River, a residential and industrial suburb of Denver; inc. 1903. , Colo.--(BUSINESS WIRE)--April 1, 1997--EchoStar Communications Corporation ("EchoStar") (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 :DISH) today reported fourth quarter 1996 total revenues of $54.0 million, an increase of 33% as compared to $40.6 million during the fourth quarter of 1995. Total revenues were approximately $211.4 million for the year ended December December: see month. 31, 1996, compared to $163.9 million in the prior year, an increase of 29%. These increases were the direct result of the Company's rapidly increasing DISH Network See DBS. (SM) subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. base. The DISH Network began providing commercial service in March 1996. During the three months ended December 31, 1996, the DISH Network added approximately 160,000 subscribers. EchoStar had approximately 350,000 DISH Network subscribers as of December 31, 1996. EchoStar expects operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. to continue to increase in future periods as it expands its distribution channels and the number of DISH Network subscribers increases. As expected, EchoStar reported net losses of approximately $44.7 million and $101.0 million for the three-month period and year ended December 31, 1996, respectively, as compared to $7.1 million and $11.5 million reported during the same periods of 1995. These increases in EchoStar's net losses related principally to increased depreciation and amortization expense (including depreciation of the Company's EchoStar I and EchoStar II satellites, launched during 1995 and 1996, respectively), higher interest expense, DISH Network subscriber promotion subsidies (i.e., subscriber acquisition costs incurred in connection with certain DISH Network marketing promotions), and increases in programming and general and administrative expenses. Interest expense increased as a result of continued 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 the Company's Dish Notes, which were issued during 1994, as well as the issuance of the Company's ESBC ESBC East Staffordshire Borough Council (UK) ESBC European Sports Betting Consultants ESBC European Shareholders of Bougainville Copper Ltd. ESBC Earle Street Baptist Church (Greenville, SC, USA) Notes in March 1996. On February February: see month. 24, 1997, EchoStar announced the formation of a DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. alliance with The News Corporation Limited ("News"). News' American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Sky Broadcasting ("AskyB") affiliate will contribute to EchoStar, or to an entity in which EchoStar would have an equity interest, or make available for EchoStar's use, cash, satellites and other DBS assets. These assets are expected to have a total value of approximately $1.7 billion, including an FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. license purchased during 1996 for approximately $682.5 million. In return, AskyB will acquire an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 50 percent interest in EchoStar. Assuming consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the AskyB Transaction, EchoStar's business plan would contemplate the deployment of a total of seven DBS satellites. The Company anticipates that several hundred channels of digital video and audio programming would be available for purchase by most continental U.S. television households. EchoStar expects to use its expanded capacity to provide additional niche, foreign language, cultural, educational and business television programming services currently not widely offered by other providers of subscription television services. The Company also is planning, subject to obtaining necessary regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and other approvals, to use the remaining portion of its DBS capacity to provide local programming to major population centers within the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. . DISH Network, EchoStar's state-of-the-art DBS system, currently offers retailers and consumers over 120 channels of audio and video programming, fully MPEG-2/DVB compliant
EchoStar, headquartered in Englewood, Colorado Englewood is a city in Arapahoe County, Colorado, USA. As of 2005, the city is estimated to have a total population of 32,350.[5] It is part of the Denver-Aurora Metropolitan Area. , also is a worldwide manufacturer and distributor of satellite television products and the only U.S. provider of state of the art, fully MPEG-2/DVB compliant satellite television systems. The Company is widely recognized in the industry for its research and development activities. DISH Network is a service mark of EchoStar Communications Corporation EchoStar Communications Corporation (NASDAQ: DISH) is the parent company of DISH Network and the maintainer of the satellite fleet that provides the signal that DISH Network markets. . DISH Network's Internet address There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. is: http//www.dishnetwork.com -0- All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company's behalf, that are not statements of historical fact, constitute "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results of or from any future results expressed or implied by such forward-looking statements. -0-
SELECTED FINANCIAL DATA
EchoStar Communications Corporation
(Nasdaq National Market: DISH)
(In thousands, except per share data)
Three Months Ended
December 31,
1996 1995
Statements of Operations Data:
Revenue:
DTH products, technical services and
other $ 13,306 36,866
DISH Network promotions - subscription
television services and products 18,343 --
DISH Network subscription television
services 19,976 --
C-band programming 2,393 3,753
Total revenue 54,018 40,619
Expenses:
DTH products and technical services 13,894 29,139
Programming - DISH Network programming 11,202 --
C-band programming 1,879 3,223
Selling, general and administrative 36,820 15,071
Subscriber promotion, subsidies 27,591 --
Amortization of subscriber acquisition
costs 12,543 --
Depreciation and amortization 9,850 1,624
Total Expenses 113,779 49,057
Operating loss (59,761) (8,438)
Other Income (Expense):
Interest income 912 2,981
Interest expense, net of amounts
capitalized (8,307) (5,236)
Other (434) 554
Total other income (expense) (7,829) (1,701)
Net loss before income taxes (67,590) (10,139)
Income tax benefit 22,897 3,040
Net loss $(44,693) $(7,099)
Net loss attributable to common shares $(44,994) $(7,400)
Weighted average common shares outstanding 40,824 37,544
Loss per common and common equivalent share $(1.10) $(0.20)
Number of DISH Network subscribers 350,000 --
SELECTED FINANCIAL DATA
EchoStar Communications Corporation
(Nasdaq National Market: DISH)
(In thousands, except per share data)
Year Ended
December 31,
1996 1995
Statements of Operations Data:
Revenue:
DTH products, technical services and
other $ 138,846 $ 148,658
DISH Network promotions - subscription
television services and products 22,746 --
DISH Network subscription television
services 37,898 --
C-band programming 11,921 15,232
Total revenue 211,411 163,890
Expenses:
DTH products and technical services 123,790 116,758
Programming - DISH Network programming 19,079 --
C-band programming 10,510 13,520
Selling, general and administrative 90,372 38,525
Subscriber promotion, subsidies 33,591 --
Amortization of subscriber acquisition
costs 15,991 --
Depreciation and amortization 27,423 3,114
Total Expenses 320,756 171,917
Operating loss (109,345) (8,027)
Other Income (Expense):
Interest income 15,630 14,059
Interest expense, net of amounts
capitalized (61,487) (23,985)
Other (477) 722
Total other income (expense) (46,334) (9,204)
Net loss before income taxes (155,679) (17,231)
Income tax benefit 54,693 5,745
Net loss $(100,986) $(11,486)
Net loss attributable to common shares $(102,190) $(12,690)
Weighted average common shares outstanding 40,548 35,562
Loss per common and common equivalent
share $(2.52) $(0.36)
Number of DISH Network subscribers 350,000 --
CONTACT: EchoStar Communications Corporation Judianne Atencio, 303/799-8222 x5112 atenjud@echostar.com |
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