Metrocall Inc. reported revenues for the first quarter ended March 31 of $145.2 million, a substantial increase from the $96.3 million reported for first-quarter 1998.
Net loss for the quarter was $46 million, or $1.15 per share, compared with a net loss of $28.2 million, or 75 cents per share, for the same time the previous year.
“During the quarter we made significant progress integrating the Advanced Messaging Division of AT&T (Wireless Services Inc.),” said Metrocall President and Chief Executive Officer William Collins.
“However, we incurred increased expenses in the first quarter as we constructed our own technical data network and related facilities to allow us to transition away from multiple service and support agreements we currently have with AT&T,” he added. “This means that in effect we are paying duplicate expenses for several quarters.”
Collins noted Metrocall currently is known by 94 separate account names. The company has assembled a special task force to seek out and implement cost reductions, including canceling redundant telephone circuits. During the first quarter, Metrocall also made 460 net site reductions.
Commenting on the seemingly rampant exit by many customers and vendors from the paging and data messaging industry, Collins said, “Those customers who are leaving our service are not showing up that its for cellular or PCS services.”
Instead, many customers are finding all-in-one services being offered by other companies are inferior in quality to the voice and data messaging services offered by paging/messaging companies, Collins contended. In fact, Metrocall’s subscriber base increased from 4.1 million in the first quarter of 1998 to 5.8 million this year.
“Competition from voice is not a problem,” said Collins.
Also in the future for Metrocall is development and distribution of advanced messaging and wide-area personal communications services through its alliance with PageMart Wireless Inc.
