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  1. Technology
July 31, 2000

GoAmerica Achieves Record Revenue Growth

COMPANY PRESS RELEASE: GoAmerica, Inc. a nationwide wireless Internet service provider, today announced results for the second quarter ended June 30, 2000, its first quarter as a public company.

By CBR Staff Writer

During this period, as well as since the close of the quarter, GoAmerica has announced strategic alliances that further the execution of the Company’s business model. GoAmerica expects that these agreements will accelerate future revenue and subscriber growth. Some highlights for the quarter include:

As of June 30, 2000, GoAmerica had 18,367 subscribers, including 4,734 subscribers of Wynd Communications Corporation, which GoAmerica acquired during the second quarter. Subscribers grew organically to 13,633, a 376% increase from the approximately 2,866 subscribers at June 30,1999 and a quarter over quarter increase of 57% over the 8,698 subscribers reported at March 31, 2000.

GoAmerica completed its acquisition of Wynd Communications, bringing the Company innovative technology and a strong management team.

Staples recently signed an agreement with GoAmerica to feature the company’s full range of wireless Internet and communications services and product solutions. The new relationship will broaden GoAmerica’s reach into the home-based and small business markets.

EDS and GoAmerica signed a joint marketing agreement to deliver next-generation mobile data solutions to the Global 2000 and small to medium sized businesses.

Hewlett- Packard Company entered into an agreement with GoAmerica to offer the Go.Web technology on HP’s family of OmniBook and Pavilion Notebook PCs.

On July 27, GoAmerica announced that its industry-leading Go.Web(TM) technology is available as a pre-loaded application on RIM Blackberry devices sold by Rogers AT&T Wireless, Canada’s largest wireless communications provider.

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GoAmerica and Research In Motion Limited announced an agreement to offer the Go.Web technology as a pre-loaded application with the award-winning BlackBerry wireless email solution on the new RIM 950 (pager-size) and RIM 957 (palm-size) wireless handhelds.

Oracle announced the integration of GoAmerica’s Go.Web Wireless Service with Oracle’s “Portal-To-Go,” wireless portal software, which delivers a secure one-stop solution to wirelessly access corporate data.

Sierra Wireless will bundle the Go.Web service with its award-winning AirCard 300, which provides a growing population of laptop users access to a complete and compelling wireless data solution.

GoAmerica announced that it will provide wireless Internet access for the Handspring VisorT handheld computer, allowing individuals and businesses wireless access to POP3 email, the Internet and their corporate intranet.

DLJ Direct entered into an agreement with GoAmerica to offer its customers special wireless product and service offerings from GoAmerica, allowing its customers to monitor the performance of their portfolios while away from the home or office.

Commtouch, a leader in outsourced email and messaging solutions, signed an agreement with GoAmerica to develop and market wireless email, Internet and messaging solutions for small, medium and large-size corporations.

Total revenue for the three months ended June 30, 2000, was $2,055,000, a 300% increase over the $514,000 for the second quarter of 1999. Subscriber revenue was $1,288,000, an increase of 516% from $209,000 for the second quarter of 1999 and an increase of 55% over the first quarter of 2000. Net loss applicable to common shareholders for the second quarter was $15.6 million, or $0.34 per basic and diluted common share, which includes a $609,000 non-cash charge related to the accretion of Series A and Series B preferred stock. Net loss for the second quarter before the accretion of Series A and Series B preferred stock was $15.0 million, or $0.33 per basic and diluted common share, compared with a net loss of $1,947,000, or $0.09 per basic and diluted common share in the comparable period of 1999. Excluding a $5.0 million one-time non-cash compensation charge resulting from the exercise of a warrant, net loss for the quarter before the accretion would have been $10.0 million, or $0.22 per share.

The average monthly revenue per customer (ARPU) has increased to $38.45 reported for the second quarter of 2000, compared with $30.98 in same period last year and $38.04 in the prior quarter.

Aaron Dobrinsky, President and Chief Executive Officer of GoAmerica commented, “The major alliances and relationships we have recently announced validate GoAmerica’s business model and solidly position us in the enterprise wireless data solutions arena. Demand for remote access to the Internet, email and corporate intranets continues to escalate, and, we believe that with our industry-leading Go.Web technology, GoAmerica is at the forefront of this space. We expect demand for our technology and enterprise solutions to continue to build as we focus on advancing our Go.Web technology and developing additional strategic relationships.”

Dobrinsky continued, “During the second quarter we made solid progress in executing upon our business plan. We expect to see accelerated subscriber growth in late 2000 and into early 2001 as a result of some of our recently announced relationships. With a 51% increase in headcount since the first quarter of 2000, we believe GoAmerica continues to build the foundation necessary to propel future growth.”

Total revenue for the six months ended June 30, 2000, was $3,495,000, a 302% increase over the $869,000 for the first six months of 1999. Subscriber revenue for the six-month period was $2,118,000, an increase of 510% from $347,000 for the same period in 1999. Net loss applicable to common shareholders for the first six months of 2000 was $57.7 million, or $1.65, per basic and diluted common share, which includes a $30.8 million non-cash charge related to the accretion and beneficial conversion of Series A and Series B preferred stock. Net loss for the first six months of 2000 before the accretion and beneficial conversion of Series A and Series B preferred stock was $26.9 million, or $0.77 per basic and diluted common share, compared with a net loss of $2,908,000, or $0.13 per diluted common share in the comparable period of 1999. Excluding a $5.0 million one-time non- cash compensation charge resulting from the exercise of a warrant, net loss for the six month period before the accretion and beneficial conversion would have been $21.9 million, or $0.63 per share.

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