HACKENSACK, N.J.-GoAmerica Inc. surprised Wall Street with a better-than-expected earnings report and a reiteration of its positive outlook for the future.
The company’s stock was trading at $4.69 per share in afternoon trading Tuesday. Monday, the company’s stock rose about 20 percent to nearly $5 per share following news of the company’s earnings.
For the fourth quarter, ended Dec. 31, GoAmerica’s total revenues were $6.1 million, up from $1.2 million during the same period in 1999. The company’s fourth-quarter loss was $19.4 million, compared with its $15.7 million loss during the same period in 1999. GoAmerica posted total revenues last year of $13.9 million, up from 1999’s $2.7 million.
On the subscriber front, the company boasted 47,632 subscribers at the end of last year, way up from the 6,000 subscribers it had at the same period in 1999.
“Record subscriber revenue in the fourth quarter was driven by continued effective execution of our strategy, highlighted by contributions from the alliances and relationships we announced during 2000,” said Aaron Dobrinsky, the company’s chairman and chief executive officer.
GoAmerica also was positive about this year’s outlook, predicting 300,000 subscribers by the end of the year and profitability by the second half of next year.
Bear, Stearns & Co. said it is maintaining its Buy recommendation.
“In an environment with other wireless data and related companies lowering guidance, we believe GoAmerica’s reiteration of its 2001 subscriber and financial guidance is a positive for the company,” Bear, Stearns & Co. said in a statement.
Hackensack, N.J.-based GoAmerica is a nationwide wireless Internet service provider.
