Internet-over-cable company @Home Network Inc took a massive $172.6m non-cash charge in the fourth quarter which his its quarterly and year-end results hard. The charge arose from its October distribution deal with Cablevision Systems Corp to secure Cablevision’s important New York, Boston and Cleveland systems to run the @Home internet access service. In exchange for the deal, Cablevision received a warrant to purchase 11 million shares of @Home’s series A common stock at $0.50 per share. At the year end @Home was serving 50,000 customers out of a possible 4.5 million homes that are served with the necessary two-way upgraded plant. Although not a spectacular penetration rate by regular cable standards, Redwood City, California-based @Home says it met or exceeded expectations in key performance areas. It had 26,000 cable modem subscribers out of a possible 2.7 million at the end of the previous quarter. The business division, @Work had more than 300 corporate accounts. Cash at the year-end was $120.4m, $101m of which came from July’s initial public offering. @Home closed yesterday down 25 cents at $26.25 and reported after the close.
