High Speed Access Corp., the Littleton, Colo.-based
data-over-cable-service provider, reported 64 percent subscriber growth in the second
quarter ended June 30, boosting revenue during the period by more than 600 percent.
Revenue at the company was $641,000 in the second quarter,
more than seven times sales of $91,000 reported in the same period last year. The company
said residential cable-modem customers increased to 5,195 from 3,169 as of March 31. The
company began operations in April 1998.
As of June 30, HSA began full operations and has started
marketing its services to 740,000 homes passed by its cable partners' systems.
HSA currently has the rights to offer services to 1.8
million homes under existing contracts and letters of intent, and it has commenced
deployment activity for an additional 900,000 homes passed.
However, due to the increased costs associated with rolling
out its service, net losses were higher in the most recent quarter -- $15.3 million, or 38
cents per share, compared with $1.8 million (22 cents) last year.
For the first half of 1999, HSA reported net revenue of
$940,000 and a net loss of $23.3 million, or a pro forma net loss of 67 cents per share.
"We have achieved strong growth in such key measures
as homes marketed and homes under contract or letter of intent, while working to further
develop and enhance relationships with cable operators and strategic partners alike,"
chairman Ron Pitcock said in a prepared statement.
"We are especially excited about our recently signed
agreement with Road Runner, which will potentially make our services available to homes
affiliated with their Time Warner [Cable], Fanch [Communications Inc.] and Insight
[Communications Co.] cable systems," he added.
Last month, HSA reached an agreement with Road Runner to
act as a subcontractor for high-speed Internet services in small Road Runner-affiliated
HSA will also grant Road Runner warrants to purchase one
share of HSA's common stock at $5 for each home passed that the two companies
designate to receive the service, up to a maximum of 5 million shares.
Also, Road Runner receives the right to provide its content
over the service.