JACKSON, Miss.-Mobile Telecommunication Technologies Corp. reported operational results for the quarter that again exceeded analysts’ financial expectations but did not meet their subscriber forecasts.
Mtel reported a net loss of $12.4 million, or 28 cents per share, which the company called a significant improvement from the $21.4 million, or 45 cents per share, reported in the first quarter of 1997. Some analysts had predicted a 37 cents-per-share net loss. Net revenue for the first quarter totaled $121.5 million, a 28-percent increase from the same period last year.
Domestically, the company has 939,700 one-way units in service and 224,900 advanced messaging units. For the quarter, Mtel gained 67,100 subscribers, 66,300 of which were advanced messaging. Fewer than 1,000 were one-way adds. Analysts expected total subscriber adds upward of 80,000. The shortfall was mainly blamed on the few one-way additions.
“Our progress in the first quarter and the acceleration of growth we anticipate in the second quarter should get us to operating cash flow break-even on the advanced messaging network by the third quarter of this year,” said John Stupka, Mtel president and chief executive officer.
Toronto Dominion Bank, New York, maintained its Strong Buy rating for the company following the report.
Mtel announced earlier its plans to change its name to SkyTel Communications Inc. in a move intended to unify the company’s image and brand under its primary operating subsidiary, the SkyTel messaging service. The name change first must be approved by shareholders. Mtel expects the name change to be effective May 22.
