Network Access Solutions Corporation (NAS) (Nasdaq: NASC) slid by First Call's estimates by a penny Thursday, reporting first quarter loss of 50 cents a share as the company expanding its network infrastructure and increasing the number of installed lines.
Shares in the broadband service provider fell 13/16 to 17 3/16 Thursday morning following the news. The company pulled out of a secondary offering in April due to the unreceptive market conditions.
Revenue increased 33 percent year-over-year to $6.4 million. Network services revenue, which are now about 26 percent of total revenue, contributed $1.7 million, or 1,400 percent more than in the year-ago quarter.
Net loss increased to $23 million, or 50 cents a share, including a one-time charge of $574,000 to write off costs associated with the follow-on offering which the company started, but had to withdraw. Net loss in the year-ago quarter was $2.8 million, or 8 cents a share. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to negative $16.5 million compared to negative $1.8 million in the first quarter of 1999.
The company said it delivered strong operating growth, and finalized its previously-announced financing and strategic operating agreement with SBC Communications (NYSE: SBC) and Telefonos de Mexico (Telmex) (NYSE: TMX) for $150 million.
Among other earnings news Thursday:
Fourth quarter sales rose 47 percent to $34.6 million as a result of continued demand for KVM switch products and the contribution from the company's PixelVision acquisition. Excluding non-recurring charges, income increased 50.8 percent year-over-year to $6.1 million, or 29 cents a share. Net sales rose to $34.6 million compared with $23.5 million in the fourth quarter a year ago.
Results for fiscal 2000 showed sales rose 46.5 percent over 1999. Income before non-recurring charges rose 56.2 to $21.3 million, or $1.03 per diluted share, and net income was $18.8 million, or 91 cents a share, compared with $12.4 million, or 63 cents a share in 1999.
Shares in the company which uses the Internet to market long distance services were down 15/16 to 10 5/16 Thursday morning.
Total sales were $156.1 million, an increase of 41 percent over the same period last year. Gross profit was up 75 percent to $64.4 million. Net income for the quarter was $13.4 million or 20 cents per diluted share, compared with net income of $12.3 million or 20 cents per diluted share for the same period last year.
The company said the increase in net income was achieved even with a more than twofold increase in marketing and advertising expenses to about $36.7 million, as it continued to expand its online customer base. The increase in sales is a result of higher than expected revenue per subscriber and the seasonal increase in subscribers from its AOL (NYSE: AOL) marketing channels.
Talk.com also announced Thursday its launch of local services in BellSouth (NYSE: BLS) territory Thursday.
Shares rose 1/8 to 12 1/2 Thursday morning.
Net sales were up 35 percent to $19.5 million over the prior year's second quarter. Net income for the quarter was $257,464, or 3 cents a share on a basic and diluted basis, respectively, compared with $865,552, or 10 cents and 9 cents a share for the prior years second fiscal quarter.
"Though our sales growth in the quarter was satisfactory, the company had lower overall profit margins due to the slow acceptance of our Digital TV receivers," said CEO Ken Plotkin in a release. Hauppauge said it is a firm believer in the potential of the Digital TV market, though in both the data broadcast area and for viewing digital TV shows, the market has been ramping up slower than expected.
The rapid drop in the Euro was also blamed for denting profitability.
Revenue was $1.4 million, less than the $1.7 million for the same period in 1999.
Net loss of $1.7 million or 9 cents a share, was slightly narrower than the $2.2 million or 13 cents a share reported in the first quarter of 1999.
The company said that as of March 31, it had strengthened its balance sheet, with $7.8 million in cash, reduced its operating expenses and improved its gross margin.