Winstar 4Q loss widens; prospects improve

(Telephony) Fixed broadband wireless provider Winstar Communications said higher costs to expand its network caused its fourth quarter loss to widen to $228.7 million, or $2.76 per share, from $162.3 million or $2.18 per share a year ago, beating analyst predictions of a $2.78 per share loss.

There may be light at the end of the losing tunnel for the wireless data and telephony provider for the commercial market. Sales climbed 59% during the quarter from $225.1 million from $141.5 million as Winstar added 1200,000 customer lines to reach a total of 1 million.

Winstar further predicted its sales would hit the high end of analyst forecasts of $1 billion to $1.75 billion in 2001. Its stock, which has lost about three-quarters of its value during the past year, climbed 19% in early afternoon trading to reach almost $14.

Overall, the wireless provider, which secured $1 billion in new financing last November, predicted better days ahead as it moves into its network implementation.

“This is definitely going to be a critical year for us,” said a Winstar spokesman. “We've done a lot of the heavy lifting on the network, so now we're just turning to lighting buildings on it.”

Winstar has business in 60 U.S. markets and 15 overseas. In addition to its fixed broadband wireless business, it also designs and manages Web sites, sells high-speed Internet access, and provides online services to small and medium-sized businesses.