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PageNet expects revenue jump

The wireless messaging service says third-quarter revenues are likely to increase 10 percent to 12 percent compared to third quarter 1997.

Wireless messaging service PageNet today announced that the company expects third quarter revenues to increase 10 to 12 percent compared to third quarter 1997.

PageNet said it expects third quarter earnings before interest, taxes, depreciation,and amortization (EBITDA) earnings to rise 12 percent to 14 percent as the company says that it continues to experience improvements in the financial performance of its core business.

"We are pleased with the progress we are making in the implementation of our realignment program and in refocusing PageNet toward long-term, profitable growth," said John P. Frazee, Jr., PageNet chairman, president, and chief executive officer. "We are making significant strides in focusing our sales efforts on more profitable services, and we have made substantial inroads in establishing our new advanced messaging offerings."

PageNet said the improvements in the company's core business are the result of two factors: an improvement in average monthly revenue per unit due to reduced numbers of customers utilizing unprofitable services and continued low levels of capital spending.

As a result of this strategy, PageNet expects to have a decrease in the number of units in service for the quarter, but expects to report continued improvements in its average revenue per unit for the period.

PageNet's average revenue per unit from its core business has increased 6 percent, from $7.03 to $7.44, during the 12 months ending in June 1998. The majority of the decline in the number of units in service is attributable to the reseller channel.

The company's stock was down 1.8 percent to 6.81 and has traded as high as 16.63 and as low as 6.5 during the past 52 weeks.