NEW YORK-Mobile Telecommunication Technologies Corp., Jackson, Miss., reported first quarter results showing increases in revenues and operating cash flow, with continuing but lessening losses per share of common stock.
Consolidated revenues for the latest quarter were $94.6 million, a 7.2 percent increase compared with first quarter 1996 and a 5 percent increase compared with fourth quarter 1996, said Robert Kaiser, chief financial officer.
Operating cash flow totaled $9.9 million, vs. a $4.4 million loss during the same quarter a year earlier. In the last quarter of 1996, Mtel had operating cash flow of $2.5 million.
Consolidated losses for the latest first quarter were $21.4 million, or 45 cents per share, compared with $28.6 million, or 57 cents per share, during the first quarter of 1996. However, Kaiser noted that first quarter losses actually would have been higher, at $28.8 million, or 59 cents per share, were it not for the fact that “Mtel realized a $7.4 million gain on the sale of our interest in a Brazilian paging property.”
However, he stressed that this gain wasn’t used to help repay the $135 million Mtel has drawn down against a bank credit facility whose terms it renegotiated, “to accommodate a new three-year plan.” Since November, the carrier has repaid $5 million of that loan and hasn’t borrowed further against it. But Kaiser said he anticipated further borrowing against the facility this year, “because of spending associated with the introduction of SkyWord Plus.”
The carrier’s advanced messaging base grew by 1,800 units during the first quarter of this year. Mtel is hoping for 300,000 net subscriber additions this year, of which 200,000 would be on its advanced messaging platforms, company officials said. Fixed costs for SkyWord Plus will be covered at the 100,000 subscriber mark, Kaiser said.
“We now have more than 40 carriers signed up for SkyWord Plus acknowledgement paging, and many are ready to begin selling it in May or June,” Kaiser continued.
“Look for intelligent unit and revenue growth in 1997.”
