Nucentrix posts losses as second-generation gear fails to appear

Fixed broadband wireless service provider Nucentrix, continuing to migrate its broadband wireless high-speed data customers from wireless to satellite and cable programming sources, today reported losses for the previous three- and six-month periods.

The company reported that three- and six-month revenues for the period ending June 30 were $10 million and $20.6 million compared with $12.6 million and $26.5 million last year. Earnings during the same periods were a negative $1.1 million and $1.9 million, compared with negative $910,000 and $1.6 million last year. Net loss for the three- and six-month periods was $7.3 million and $15.1 million compared with $7.1 million and $14.8 million last year. The company said it had $11 million of cash on hand July 30.

Nucentrix offers high-speed Internet services in Austin and Sherman-Denison, Texas, using MMDS and Instructional Television Fixed Service spectrum in the 2.1 and 2.5 GHz bands. It holds 152 MHz of FCC-licensed spectrum, covering an estimated 8.9 million households, in 94 medium and small markets across Texas, Oklahoma and the Midwest, and 20 MHz of Wireless Communications Service spectrum at 2.3 GHz in 19 markets in Texas and Louisiana. It announced its subscriber migration program in March.

Last month, Nucentrix announced that Russell Wiseman, its senior vice president of Internet Operations had left the company, based partially on the delay in significant Internet deployment activity, attributed to the slow development of next-generation fixed broadband wireless gear.

--Jim Barthold, Senior Editor