DALLAS-Paging Network Inc. finally reported year-end and fourth-quarter 1999 financial results and filed its 10-K annual report, following repeated delays blamed on a massive accounting effort under way regarding its pending merger with Arch Communications Group Inc.
Fourth-quarter net loss was reported as $64.9 million, or 64 cents per share, compared with a net loss of $37.5 million, or 36 cents per share, reported the previous fourth quarter. Total revenues for the quarter were $209.3 million, compared with $245.6 million the year before.
PageNet’s subscriber base, which has declined significantly every quarter for more than a year, showed no sign of improving. The company reported about 8.9 million subscribers for the fourth quarter, a reduction of about 300,000 units. Going further, PageNet said it estimates it lost an additional 570,000 subscribers during the first quarter.
Looking to PageNet’s liquidity, which concerns some financial analysts, PageNet said it had a cash balance of $55 million as of May 1. The company said its cash position is improving as a result of cost-cutting and cash-management policies implemented to conserve liquidity until its merger with Arch is completed.
PageNet said it expects the cash balance and cash from operations are sufficient to fund company operations through the third quarter.
