This only adds more fuel to the argument that simply placing a multiple on a company isn't where the "smart money" is.
Revenue is largely irrelevant. Profits are King. Revenue doesn't put kids through school or buy that new car...bottom line profit does. The concept of fixed wireless has long lost its sizzle. Simply stating you're able to cut out the LEC and reap those dollars yourself doesn't excite like it used to. Profits, real estate assets, contractual agreements, client base are key deal points in today's market. While I agree WinStar and Teligent didn't do the fixed wireless industry any favors, most of the bridges burned were with building management and not the end user market. Investor relationships may have also taken a toll, but again the "smart money" isn't going to get all wrapped up in the sizzle. They will be looking for real assets and real earnings. Best, Brad -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Matt Liotta Sent: Monday, December 04, 2006 11:55 AM To: WISPA General List Subject: [WISPA] Industry failings One the biggest factors holding our industry back is a lack of success on the part of the big poster children. People look at the past failures of WinStar and Teligent and wonder if new entrants can succeed. Many investors are watching FiberTower and NextLink to see if these new poster children can prove the business model. It doesn't really matter that neither FiberTower or NextLink are representative of our industry. What matters is they are both publicly traded fixed wireless companies. This means that all fixed wireless companies are viewed through the lens of these publicly traded companies since they are the only ones with enough information for people to draw conclusions on. If you look at FiberTower's and NextLink's latest numbers you should be very worried. NextLink is failing and I predict will be out of business in the not too distant future. FiberTower is much better off than NextLink, but they are burning cash at an impressive rate. One can easily predict them running out of cash sometime next year if things follow a similar trend. Some of us on this list do more revenue than NextLink, but I doubt that will matter when they go under. Our valuations will decline in lock step to any failures by these two companies. -Matt -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
