@Home Networks Inc saw a sharp increase in revenues to $25.1m during its first quarter, a 31% sequential rise over the fourth quarter figure of $19.2m, and over quadruple the $5.8m in sales it posted in the same quarter last year. Excluding one time charges, @Home posted a net loss of $8.9m, or seven cents a share, compared with $11.7m or 10 cents a share last year – bang on analysts’ predictions, as reported by First Call.
The rise in sales was largely due to an increase in the number of subscribers. The North American subscriber base rose 39% to 460,000 from 331,000 in December, and rose 413% from the 90,000 subscribers @Home had in March 1998. Potential customers in the US, with access to two-way upgraded plant, rose to 15 million at the end of March from 13.2 million in December. And @Home launched its service in nine new markets, giving it 68 active US and Canadian markets.
Redwood City, California-base @Home said its acquisition of the Excite Inc web portal business announced during the quarter was on track and likely to close in late May. The @Work business division contributed 30% to revenues and @Media marketing and commerce 15%. After the quarter closed, @Home announced a Japanese joint venture with Jupiter Telecommunications and Sumitomo Corp.
The overall net loss was $18.1m, compared with the loss of $31.2m a year ago. That figure included a $12.6m investment gain and $21.8m in charges from distribution agreements and merger and acquisition related costs. Complex distribution arrangements with cable television partners typically result in such charges: 1998’s loss also included $19.5m in charges.
