Metricom needs money, slows deployment plans

(Telephony) Mobile wireless data network operator Metricom announced plans to scale back launches of its Ricochet high-speed wireless data network in some markets until it obtains more financing.

“We have enough cash to carry us into the second half of the year,” said Chairman and CEO Timothy Dreisbach during a conference call with analysts. “We’re actively exploring a variety of investment alternatives with a variety of different parties.

“Nevertheless, prudence dictates that we must dramatically reduce our negative cash flow, requiring a slowdown from our aggressive pace of deployment that we’ve been on. We all recognize that, if we are unable to obtain the funding, the business will not have sufficient resources to continue operations.”

The company reported a total of 34,000 subscribers, below analysts’ expectations of 40,000 customers. Net loss in the fourth quarter reached $114.4 million, or $3.71 per share, compared with a net loss of $56.3 million, or $2.51 per share, the previous year. Revenue also fell to $2.4 million from $4.9 million. Capital expenditures increased to $201.6 million from $27.4 million, said the company.

Metricom’s stock fell almost 44% by the end of trading on Thursday, finishing at $5.81. The company said it is considering all alternatives and is preparing to reduce its staff and operations.

Metricom service is available in 13 markets. The company relies on resellers such as Go America and, most recently, WorldCom to sell the service.