Winstar Communications Inc. beat analyst expectations for the fourth quarter and year ended Dec. 31, reporting its revenues increased 59.1 percent to $225.1 million, and its total revenues for the year increased 70.4 percent to $759.3 million, compared with 1999.
The company reported a net loss for the quarter of $255.1 million, or $2.76 per share, 2 cents better than consensus analyst earnings expectations.
William J. Rouhana, Winstar’s chairman and chief executive officer, said the company’s performance in two key areas has driven much of its success.
“First, consistent execution of our strategy to accelerate the buildout of our broadband network, while enhancing its value with a wide range of broadband services, continues to pay dividends. Second, the unprecedented success of our disciplined on-net strategy has resulted in sharply improved performance for eight consecutive quarters,” Rouhana said.
Standard & Poor’s said although Winstar’s fourth-quarter loss widened to $255.1 million from $180.4 million a year earlier, it had no impact on the company’s credit rating outlook because the company’s earnings before interest, taxes, depreciation and amortization has dropped significantly for the quarter to $19 million from $62 million for fourth-quarter 1999.
Winstar said it increased its total on-net buildings by 1,000 during the fourth quarter, bringing its total to 4,400 buildings. As a result, the company’s “addressable businesses,” or those businesses located in on-net buildings, increased 32 percent to 125,000 during the quarter.
“Execution is driving our results, pure and simple,” said Nathan Kantor, Winstar’s president and chief operating officer. “Given our goal of doubling our addressable market again in 2001, we clearly expect the momentum to continue.”
In other Winstar news, the company said the General Services Administration’s Federal Technology Service for the city and surrounding metropolitan area of Philadelphia awarded Winstar, along with AT&T Corp., a Metropolitan Area Acquisition contract with a potential value of $296 million over eight years.
Under terms of the four-year contract, which includes four additional one-year options, Winstar will provide data and local switched voice services, as well as dedicated transmission services to government users in Philadelphia.
The contract is the 12th MAA contract Winstar has been awarded in the past 11 months.
