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EXHIBIT 99.1
NEWS RELEASE
METRICOM REPORTS FOURTH QUARTER 2000 RESULTS
RICOCHET, FASTEST MOBILE WIRELESS INTERNET SERVICE, COVERS 48 MILLION IN 15
MARKETS
DEPLOYMENT POSTPONED PENDING ADDITIONAL FUNDING
SAN JOSE, CALIFORNIA - FEBRUARY 8, 2001- Metricom, Inc. (Nasdaq: MCOM), a
leading high-speed mobile wireless data network operator, today announced
results for its fourth quarter and year ended December 31, 2000.
For the fourth quarter of 2000, Metricom reported revenues of $2.4 million,
compared with $4.9 million for the same period of 1999. The Company reported a
net loss attributable to common stockholders of $114.4 million or $3.71 per
share in the fourth quarter of 2000, compared with a net loss of $56.3 million
or $2.51 per share for the same period of the prior year. Capital expenditures
for the fourth quarter of 2000 totaled $201.6 million, compared with $27.4
million in the same period of 1999. Total cash, investments and restricted cash
and investments at December 31, 2000 stood at $526.8 million, the decrease from
the previous quarter's $792.2 million being driven by capital expenditures and
an Operating Cash Flow Loss (Loss from Operations plus Depreciation and
Amortization) of $95.0 million in the quarter. The deployment of the high-speed
Ricochet network principally accounts for the net loss attributable to common
stockholders and capital expenditures for the period.
Metricom reported revenues of $11.8 million for the year, compared with $18.5
million for 1999. The Company reported a net loss attributable to common
stockholders for 2000 of $245.4 million, or $8.15 per share; compared with a net
loss of $104.5 million or $5.13 per share for 1999. In December, 2000, the
company paid the annual dividend on its preferred shares in kind, which together
with other non-cash items related to the preferred shares, aggregated $57.2
million. In addition, the Company made $645.7 million of capital expenditures
primarily for network construction in progress in 2000, compared with $33.7
million in 1999. Revenues declined on a year-over-year basis due primarily to
the Company's strategic decisions early in the year to license Utilinet
operations to Schlumberger and to discontinue the sale of modems and
subscriptions for its original Ricochet 28.8 kbps service. Metricom's 2000
results reflect the company's investment in the national deployment and
commercial service launch of the nation's fastest mobile wireless data network.
During 2000, Metricom commenced the launch of the first nationwide high-speed
wireless internet and corporate LAN access system. Service is now available in
13 markets as high-speed service and two markets with the original 28.8 kbps
service, for a total of 15 markets with a population under coverage of 48
million people. Service is now available in Atlanta, Baltimore, Dallas, Denver,
Detroit, Houston, Los Angeles, Minneapolis, New York City, Philadelphia,
Phoenix, San Diego, and San Francisco with high-speed service; and Seattle and
Washington, D.C. with the original 28.8 kbps service.
Total subscriber count at December 31, 2000 was 34,000, including 21,800
subscribers of our 28.8 kbps service and 12,200 subscribers of the newly
launched 128 kbps service. This compared with subscriber count at the end of
1999 of 29,700 subscribers including no 128 kbps subscribers; and at September
30, 2000, of 25,900 subscribers including 2,500 128 kbps service subscribers.
Average revenue per user, which is calculated quarterly, was $26.61 for the
fourth quarter, up from $25.61 in the prior quarter.
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DEPLOYMENT POSTPONED PENDING ADDITIONAL FINANCING
In recognition of the company's need to manage cash conservatively, it will be
focusing 2001 deployment efforts on the most significant markets. Deployment in
other markets will depend on additional funding. Timothy Dreisbach, Metricom's
chairman and CEO commented, "While fourth quarter results were in line with the
company's expectations, the reality of the tight capital markets requires that
we scale back our deployment plans, and look internally for further operating
efficiencies. This prudent approach reduces the amount of capital required and
provides additional time to secure more extensive financing on favorable terms.
We continue to work closely with our strategic partners and financial advisors
in our efforts to secure permanent financing."
The Company has funding for its operations and network build out into the second
half of 2001. In the absence of financing, the business will not have sufficient
resources to continue operations. We are looking at all alternatives and
preparing to reduce staff and operations.
FOURTH QUARTER AND YEAR-END RESULTS WEBCAST DETAILS
Conference Date: February 8, 2001
Conference Time: 11:00 a.m. Eastern Time
Webcast Information: www.Ricochet.com (http://www.Ricochet.com) on the
Investor Relations page
Webcast replay available through February 22, 2001
ABOUT METRICOM
Metricom, Inc. is a leading high-speed mobile wireless data network operator.
With its high-speed Ricochet mobile access, Metricom is making "information
anytime" possible-at home, at the office, on the road, and on many devices.
Founded in 1985, Metricom has spent more than 15 years on the development of its
distinctive Micro Cellular Data Network (MCDN) technology. That experience
enables Metricom to develop the fastest wireless mobile data networking and
technology available today. Ricochet has operated a 28.8 kbps service since
1995. The new Ricochet, delivering user speeds of 128 kbps, is currently
available in thirteen markets and is connected to two 28.8 kbps service areas to
increase coverage for mobile professionals. For more information, please visit
Metricom at www.metricom.com (http://www.metricom.com).
Metricom and Ricochet are registered trademarks of Metricom, Inc. All other
trademarks are the property of their respective owners.
Statements made in this press release that are not historical facts, including
those related to future market conditions, future funding requirements, future
funding options, future subscriber growth, future capital expenditures, future
competitors, future partners, future market rollouts and future technology, are
forward looking and are made pursuant to the safe harbor provisions of the
Securities Litigation Reform Act of 1995. Such statements involve risks and
uncertainties which may cause results to differ materially from those set forth
in these statements. Among other things, the availability of financing and
additional competition from existing and future competitors may impact the
market. Projections of capital requirements, market size, partners, market
acceptance, technological rollout and competition are estimated based on
preliminary information as well as certain assumptions which management believes
to be reasonable at this time. All forward-looking statements are subject to the
successful completion of the actions described in this press release. In
addition to the factors set forth elsewhere in this press release, the economic,
competitive, governmental, technological and other factors identified in
Metricom's filings with the Securities and Exchange Commission could affect the
forward looking statements contained in this press release.
DEPLOYMENT FACT SHEET
February 8, 2001
Deployment Update: Ricochet service is now available in 15 markets, covering 48
million people, 13 with 128 kbps high-speed service, and two with our original
28.8 kbps service. Subscribers are able to use their service in any of the 15
markets.
Status of the build out:
o Launched Ricochet 128 high-speed service in 13 markets: Atlanta,
Baltimore, Dallas/Fort Worth, Denver, Detroit, Houston, Los Angeles
(February 5, 2001), Minneapolis, New York City, Philadelphia, Phoenix, San
Diego, and San Francisco. The high-speed service is integrated with 28.8
kbps service in the Seattle and Washington, D.C. markets.
o Added new municipal agreements in 2000 covering nearly 22 million people
for a total of 71 million.
o Added new utility agreements in 2000 covering 51 million people for total
of nearly 76 million.
o Increased the number of wired access point (WAP) leases to 2,150 leases
completed and over 200 in negotiation. Zoning has now been received for
over 2,100 sites, architectural and engineering completed for over 1,900
sites and building permits received for 1,550 sites
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o Construction completed on 1,070 WAP sites with 250 more under construction
at year-end.
o Received from vendors over 2,100 WAP units, with another 230 at >90%
complete at year-end.
o Radios received (poletop and WAP radios) reached a cumulative 140,000.
o Installed over 51,000 poletops during the year.
Resellers:
o WorldCom joined GoAmerica, Juno Online Services and Wireless WebConnect!
actively selling Ricochet service.
o Aether and IP Communications are expected to be actively selling Ricochet
in the near future.
o Self-Service Activation commenced, allowing users to purchase a modem
off-the-shelf at a retail outlet and sign-up for Ricochet service directly
over the Internet.
Modems:
o Received 57,700 Alps GS external modems.
o Novatel commenced shipments of its Merlin Ricochet enabled PC card modems
and they are now available through a number of outlets.
o NatSteel GT modems are now available.
o Sierra Wireless is expected to begin shipments of its AirCard 400 Ricochet
enabled Network Interface Card shortly.
o National Semiconductor continues to progress in design efforts for a
Ricochet chipset that will reduce the size of the modem sufficiently to
allow it to be incorporated directly into consumer devices in a variety of
forms.
Awards:
The company and its Ricochet service received the following awards and
recognition during the quarter:
o Awarded "Best of Show" at Comdex and PC Expo
o Named one of Business Week's "Best Products of 2000"
o Listed in The Industry Standard's "The Standard 100"
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METRICOM, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
December 31, December 31,
2000 1999
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ASSETS
Current Assets:
Cash and cash equivalents $ 315,309 $ 354,820
Restricted cash and cash equivalents 11,331 -
Short-term investments 143,928 144,521
Restricted short-term investments 38,085 -
Accounts receivable, net 2,409 2,387
Inventories, net 31,686 586
Prepaid expenses and other 11,480 3,116
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Total current assets 554,228 505,430
Property and equipment, net 202,891 12,233
Network construction in progress 463,535 22,034
Other assets 14,740 6,950
Restricted long-term investments 18,166 -
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Total assets $ 1,253,560 $ 546,647
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LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT):
Current liabilities:
Accounts payable $ 89,115 $ 9,649
Accrued liabilities 38,973 12,642
Notes payable 876 4,521
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Total current liabilities 128,964 26,812
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Long-term debt 244,667 385
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Other liabilities 554 321
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Redeemable convertible preferred stock 614,976 573,329
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Stockholders' Equity/(Deficit):
Common stock 31 25
Warrants to purchase common stock 61,869 -
Additional paid-in capital 783,252 283,763
Accumulated deficit (583,348) (337,988)
Accumulated other comprehensive loss 2,595 -
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Total stockholders' equity/(deficit) 264,399 (54,200)
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Total liabilities and stockholders'equity/(deficit) $ 1,253,560 $ 546,647
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METRICOM, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED TWELVE MONTHS ENDED
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DEC 31, 2000 DEC 31, 1999 DEC 31, 2000 DEC 31, 1999
------------ ------------ > ------------ ------------
(Unaudited)
REVENUES:
Service revenues $ 2,271 $ 2,930 $ 8,808 $ 10,088
Product revenues 113 1,950 3,038 8,437
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Total revenues 2,384 4,880 11,846 18,525
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COSTS AND EXPENSES:
Cost of service revenues 42,244 8,264 110,682 20,997
Cost of product revenues 6,095 1,275 10,440 6,014
Research and development 13,958 8,317 44,476 33,019
Selling, general and administrative 35,112 6,405 65,145 19,005
Depreciation and amortization 11,967 1,596 20,462 4,716
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Total costs and expenses 109,376 25,857 251,205 83,751
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Loss from operations (106,992) (20,977) (239,359) (65,226)
Interest expense (367) (1,316) (11,600) (5,884)
Interest and other income 11,388 4,229 62,812 4,818
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Net loss $ (95,971) $ (18,064) $ (188,147) $ (66,292)
Preferred dividends and accretion 18,390 38,234 57,213 38,234
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Net loss attributable to common stockholders $ (114,361) $ (56,298) $ (245,360) $ (104,526)
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Net loss attributable to common stockholders
per share $ (3.71) $ (2.51) $ (8.15) $ (5.13)
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Weighted average shares outstanding 30,785 22,398 30,091 20,375
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