Teligent losses widen; better future predicted

(Telephony) Even as its fourth-quarter losses widened on increased costs, Teligent sees a bright future with a cash-positive flow in late 2002.

The company reported a fourth quarter net loss of $270.2 million, or $4.25 per diluted share. That was up from $156.6 million or $2.89 per share a year earlier. On the flip side, fourth-quarter revenues climbed to $54 million from $15.5 million last year.

Chairman/CEO Alex Mandl saw the numbers as evidence that the company's "on-net" strategy is paying off. Teligent recently moved from a hybrid service approach that used wireline connectivity from resold lines provided by RBOCs or other carriers to a 100% on-net fixed wireless focus for the last mile.

"Executing on this plan allows us to increase margins by selling bundles of services to customers in our on-net buildings, increasing building penetration, increasing per-customer revenue, and, of course, fully bypassing the LEC last mile," said Mandl.

He noted the first results of this strategy were evident in the fourth quarter and those results reflected a solid year's growth.

"Our fourth-quarter results capped a very strong 12 months of growth for Teligent," Mandl said.

The company ended the year with $152 million in revenue--almost 400% more than 1999--a footprint of nearly 4,500 on-net buildings--a 79% increase over 1999--and a customer base of 35,000, more than 135% more than a year ago.

"Despite some of the trying times our industry has had of late, I'm very much encouraged about Teligent and future prospects,” Mandl said. “We really have come a long way in a relatively short time. We have more customers, more buildings that are on network, more fixed wireless radios installed, more and better product offerings and more revenues than we did a year ago."