"The company believes that international markets will provide a substantial opportunity for its services," @Home said in the "10K" filing. "The markets that the company plans to target first are Canada, the United Kingdom, the Netherlands, and Australia."
Last March, @Home struck a deal to distribute its service in Canada through Rogers and Shaw, the two leading cable system operators in Canada. The company expects to expand the service in Canada, the filing added. @Home also offers the service in the United States.
According to an @Home spokesman, the filing marks the first time that @Home has detailed the other countries that it is targeting. (Word of @Home's interest in the United Kingdom has surfaced in the British media, however). @Home previously has said that countries that provide a high Net-access penetration rate, among other factors, would be considered, and the United Kingdom, Australia, and the Netherlands fit the bill. Industry sources said another candidate for @Home service would be Singapore. @Home declined comment.
@Home executives have said they plan to sign a deal with an international affiliate by year's end.
The filing also said PCTV had filed a lawsuit against @Home last July, alleging trademark infringement and unfiar competition based on the company's use of the @Home name. In February, the company and PCTV entered into a settlement.
"PCTV assigned any and all right, title, and interest in the @Home trademark to the company and agreed to dismiss the complaint," the filing said. "The company, in turn, agreed to enter into certain distribution arrangements for its @Home and @Work services with PC Connection, an affiliated company of PCTV; promote PCC on the @Home service; and make a one-time immaterial payment to PCTV."
@Home had 50,000 subscribers at year's end. According to the filing, the company has forecast that its number of subscribers could grow to 350,000 or more by the end of 1998. But it warned, "The company may not achieve this level of subscriber growth."
@Home has posted net losses from operations in each fiscal period since its inception. As of December 31, its accumulated deficit totalled $73.7 million (before a one-time charge of $172.6 million).