Netia Holdings S.A. Announces Second Quarter 1998 Results.WARSAW, Poland--(BUSINESS WIRE)--Aug. 18, 1998, 1998--NETIA HOLDINGS S.A., ("Netia") today announced unaudited results for the second quarter ended June 30, 1998. Revenues for the quarter increased by 171% to PLN PLN In currencies, this is the abbreviation for the Polish Zloty. 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 $1 trillion. 27,205,000 (US$ 7,817,000) compared to PLN 10,048,000 for the corresponding period last year. Loss before interest, depreciation, amortization and tax for the quarter fell to PLN 10,187,000 (US$ 2,926,000) compared to PLN 10,787,000 for the same period last year. Net loss for the quarter was PLN 42,178,000 (US$ 12,120,000) compared to a net loss of PLN 12,843,000 for the second quarter 1997. Total 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. for the quarter, excluding depreciation, increased 80% to PLN 37,392,000 (US$10,743,000) compared to PLN 20,835,000 for the same period last year. In addition, the net loss for the quarter includes financial expenses of PLN 36,747,000 (US$10,560,000), reflecting interest expense on the bonds issued by the Company in November 1997, as compared to PLN 3,942,000 for the same period last year. Revenues for the six months ended June 30, 1998 were PLN 48,869,000 (US$ 14,043,000), an increase of 179% compared to PLN 17,495,000 for the comparable period ended June 30, 1997. Loss before interest, depreciation, amortization and tax for the first half of 1998 was PLN 18,817,000 (US$ 5,407,000) compared to PLN 25,048,000 for the same period last year. The net loss for the six months ended June 30, 1998 was PLN 65,293,000 (US$ 18,763,00) compared to PLN 31,473,000 for the corresponding period of 1997. Revenues from telecommunications in second quarter 1998 have increased by 278% to PLN 21,213,000 (US$ 6,096,000) from PLN 6,461,000 in the second quarter of 1997. For the first half of the year, the revenues from telecommunication increased by 245% to PLN 37,076,000 from PLN 10,748,000for half year 1997. The increase was primarily due to a more than threefold increase in the number of subscribers to 96,023 from 31,705 as of June 30, 1997. At the end of the quarter, the Company had a backlog of 43,990 lines sold and awaiting to be connected; by the end of July 1998, the number of subscribers had reached 103,800. During the last 12 months, Netia has made considerable progress in building out its telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. . As of the end of the quarter, the Company is operating 19 digital switches compared to 7 at the end of the second quarter of 1997. The Company has increased the number of connected lines (defined as lines connected to the distribution point with the last drop to the customer to be completed) by 233% to 202,751 lines at the end of the second quarter of 1998 from 60,818 lines at the end of the second quarter 1997. In addition, the Company doubled the fiber optic backbone to 950 km at the end of the second quarter of 1998 from 450 km at the end of the second quarter of 1997. Finally, Netia began operating 4,500 lines of Radio In The Local Loop which accounted for 2% of the network at this end of the quarter. The Company has contracts to deploy additional 5,500 lines this year. To support the expanding network, Netia has opened 34 sales and customer care offices in its license areas. Net fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → increased to PLN 790,300,000 (US$ 227,100,000) as of June 30, 1998 from PLN 305,600,000 as of June 30, 1997 reflecting mainly the expansion of o support its operating activities. The Companyr of fixed-line local telephone services in Pol Certain statements contained in this release contain forward looking information with respect to plans and projections of future performance of the company, the occd Income Statement (All amo 1998 1997 1998 1997 1998 ---- -------- ---- translation Revenue Telecommunication revenue 21,213 6117 1,493 3,992 3,047 608 S69 17,495 7,817 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. Cha,125) (32,618) (7,753) (5,428) Depreciatio (21,690) (30,993) (3,286) ------- ------- ------- -------- ------- Total -- -------- ------- Loss from Operations - - - - Gain on Dilution of Holdings' Interest in Subsidiaries efore Income Tax (55,690) (15,913),454 3890 -------- ------- ------- ------- ------- Net Loss (4 Netia Holdings S.A. 1998 1997 1998 1997 Assets Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. Cash and cash equivalents 677,309 66,468 counts 16,941 4,219 4,868 1,212 Government 23,019 12,060 2,407 1,033 692 Inventories 1,328 - 382 -------- -------- -------- ------- Tot3 - Investments at Cost 61 5,502 18 1,581 Fixed Assets, Net 790,326 305,584 227,105 87,811 Investments 21,920 5,884 Goodwill, Net 21 --------- -- 30 June 30 June 30 June 30 June 1998 1 convenience translation LIABI 9,200 - 2,644 Accounts payable and accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. : Trade 158,408 2 201 - ------ 451 422 Long-Term Debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. 1,40 - Deferred Tax Liability 9,501 5,066 2,730 1,456 Minority Interest 17,905 51,100 5,145 14,685 Shareholdersshare) 77,117 72,292 22,160 ----- -------- -------- ------- Total Shareholders' Equity 53,739 156 T: 48 22 648 4500 F: 48 22 6YORK INDUSTRY KEYWORD: TELECOMMUNICATIONS COMED ComEd Commonwealth Edison COMED Combined Map and Electronic Display EARNINGS Today's News On The Net - Business Wire's fulinesswire.com First Loyalty Management Program in the Caribbean Business Editors/Technology Writers PHOENIXthe Fun Miles program, and consumers can instantly redeem their loyalty points towards discounts on airline tickets and other travel expenses. "This is the first customer loyalty management system to be deployed in the Caribbean and it would not be possible without the solid technology that Hypercom provides," said Alex Isings, president of Fun Miles Antilles. "We needed a sophisticated information system, and Hypercom provided a turnkey solution that included the required hardware and software." "The Hypercom system allows for comprehensive electronic data processing See EDP. (application) Electronic Data Processing - (EDP) data processing by electronic machines, i.e. computers. which allows us to provide our merchants with the information they need to further stimulate customer loyalty. Our cardholders enjoy maximum convenience through on-line redemption of earned Fun Miles," Mr. Isings said. "Fun Miles Antilles' selection of Hypercom further demonstrates our leadership in point-of-sale technologies and solutions that allow transaction processors to meet and exceed the needs of their customers," said Jairo E. Gonzalez, President of Hypercom International. Hypercom's Ascendent LMS (Learning Management System) An information system that administers instructor-led and e-learning courses and keeps track of student progress. Used internally by large enterprises for their employees, an LMS can be used to monitor the effectiveness of the supports cash, debit, credit and chip card payment types when applying and calculating stored value for merchant customers. Hypercom's solution for Fun Miles provides centralized control 1. In air defense, the control mode whereby a higher echelon makes direct target assignments to fire units. 2. In joint air operations, placing within one commander the responsibility and authority for planning, directing, and coordinating a military operation or group/category of of program rules and tracking of bonus points accumulated from the use of a magnetic stripe card A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card. at the point of sale independent of the payment means. Platform and database independent, Ascendent LMS is one of a family of Hypercom Ascendent Transaction Environment software solutions that run under UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). , Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. and Sun Solaris. Hypercom's Ascendent Transaction Environment allows transactions processors to preserve host integrity and investment while adding more applications and transaction types. This approach enables merchants and banks to offer advanced payment products and 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. , such as loyalty programs. "Hypercom's Ascendent Loyalty Management System allows companies such as Fun Miles Antilles to provide instant rewards to their customers, and that spells increased customer loyalty," said Theodore (Ted) F. Cole, Senior Vice President, Hypercom Ascendent Software Products Group. "Equally important in today's competitive business climate, Ascendent provides an adaptive layer for host legacy systems that allows companies to quickly and reliably support new functions, such as the loyalty management program Fun Miles Antilles is using, without replacing their existing transaction infrastructure investments." Fun Miles Antilles was founded in 1998. Headquartered in Curacao, Fun Miles Antilles is a program that enables Netherlands' Antilles merchants to reward their customers with discounts on travel and travel-related expenses. Celebrating its 20th anniversary, Hypercom Corporation (NYSE NYSE See: New York Stock Exchange :HYC HYC Houston Yacht Club (Texas) ) is a global provider of electronic payment solutions, including multi-functional point-of-sale terminals, peripherals, network products, transaction software, Internet-based and electronic commerce payment solutions. On a global basis Hypercom delivers the services and technology infrastructure required to quickly integrate and deploy new payment applications for competitive value-add programs, improved business performance and low total cost of ownership. Headquartered in Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. , Hypercom markets its products in more than 50 countries through a global network of offices and affiliates in Argentina, Australia, Brazil, Chile, China, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Hungary, Japan, Mexico, Russia, Singapore, the United Kingdom and Venezuela. Hypercom'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 www.hypercom.com. Note to Editors: Hypercom is a registered trademark of Hypercom Corporation. Ascendent is a trademark of Hypercom Corporation. All other products or services mentioned in this news release are trademarks, service marks, registered trademarks or registered trademarks of their respective owners. Certain matters discussed within this press release 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. 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. Although management of Hypercom believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include industry, competitive and technological changes; risks associated with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and foreign currency fluctuations; management retention; and the composition, timing, and size of orders from and shipments to major customers, and other risks detailed from time to time in Hypercom's SEC reports, including the company's prospectus dated November 13, 1997. CONTACT: Hypercom International Pete Schuddekopf, 602/504-5000 pschudde@hypercom.com or Lois Paul & Partners Marti Westlake, 650/286-3836 marti_westlake@lpp.com or Fun Miles Alex Isings, 599/9-465-3300 |
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