Excite@Home Issues Preliminary First Quarter Results and Revised Outlook For Operating Results and Near-term Funding Needs

Apr 17, 2001, 01:00 ET from Excite@Home

    REDWOOD CITY, Calif., April 17 /PRNewswire/ -- Excite@Home (Nasdaq:   ATHM),
 the leader in broadband, announced today that it expects to report first
 quarter 2001 revenues in the range of $140 million to $145 million, compared
 to $138 million in the first quarter of 2000, and a loss per share (excluding
 amortization of goodwill and other non-operational items) in the range of
 $0.14 to $0.15, compared to a loss of $0.01 per share in the first quarter of
 2000.  The company expects to report quarter-end cash and short-term
 investments totaling approximately $105 million, compared to $201 million at
 December 31, 2000.
     (Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/19990528/SFF034 )
     Worldwide subscribers to the company's @Home service totaled approximately
 3,200,000 as of March 31, 2001, an increase of approximately 450,000 or 16%
 from 2,750,000 at December 31, 2000.  Each of these figures excludes all
 subscribers of Cablevision Systems Corp., with whom Excite@Home has decided to
 terminate its relationship.  In prior periods, Cablevision subscribers had
 been included in the company's reported subscriber totals due to the
 companies' contractual relationship.  However, the vast majority of
 Cablevision subscribers did not utilize Excite@Home's network or content
 services and did not generate revenue for Excite@Home.  The company will seek
 to recover over 20 million performance-based Excite@Home warrants previously
 issued to Cablevision.
     "Our core broadband business is strong," said Excite@Home chairman and CEO
 George Bell.  "Subscriber growth continues at a rapid rate, our network is
 performing at record levels of scale and reliability, and we see important new
 opportunities developing in areas such as content delivery, wholesale services
 and premium services.  However, a weakening advertising environment has
 adversely affected our narrowband media business.  We must focus our financial
 and human resources on our core business, and make certain that we have the
 cash resources and the cost structure we need in order to realize the
 tremendous broadband opportunities before us."
     The company said that due primarily to the recent acceleration in the
 weakness of the market for online advertising and marketing services,
 Excite@Home now expects to report significantly lower revenues, greater
 operating losses and more rapid use of cash than previously forecast for the
 balance of 2001.  As a result, an impairment charge associated with the
 company's media businesses likely will be recorded in the company's first
 quarter results.  The company intends to release its final first quarter
 results and its outlook for future periods on April 23, 2001.
     In light of this weaker financial outlook, Excite@Home is taking several
 immediate measures to conserve cash and raise additional funds to continue its
 leadership in broadband services.  These measures include:
 
     -- Adoption of a revised operating plan with lower expenses than
        previously forecast.
     -- Execution today of a non-binding Letter of Agreement with AT&T under
        which AT&T would provide Excite@Home with $75 million to $85 million in
        connection with the restructuring of the backbone fiber agreement
        between the companies and with a joint initiative to maintain and
        improve current network performance levels.
     -- Negotiation of additional debt and/or equity financing from third
        parties.
     -- Continued efforts to focus the company's strategy and resources around
        its broadband franchise through the potential sale or restructuring of
        its media operations not directly supporting the company's broadband
        strategy.
 
     While there can be no assurance that the company will be successful in
 achieving its targeted expense reductions, completing the definitive
 agreements contemplated by the Letter of Agreement with AT&T or otherwise
 raising sufficient additional funds to finance its operations on a timely
 basis, these measures represent a concerted effort to support the company's
 core broadband franchise.  If the company does not achieve its targeted
 expense reductions and raise at least $75 million to $80 million by the end of
 the second quarter, there would be a material adverse impact on the company's
 operations and liquidity.
 
     Conference call to discuss today's announcement
     Excite@Home will host a conference call to discuss this announcement at
 6:00 a.m. Pacific Time today, April 17th.  A live webcast and archived replay
 of the teleconference will be available at the company's investor relations
 website, www.excitehome.net/ir.
 
     Conference call to discuss first quarter results
     Excite@Home's first quarter results teleconference will be held on Monday,
 April 23, 2001 at 2:00 p.m. Pacific Time.  A live webcast and archived replay
 of the teleconference will be available at the company's investor relations
 website, www.excitehome.net/ir.
 
     About Excite@Home
     Excite@Home is the leader in broadband, offering residential and
 commercial services, with a global footprint of 74 million homes under
 long-term contract.  Excite@Home offers consumers residential broadband
 services and businesses high-speed commercial services.  Excite@Home has over
 14 million cable franchise homes under contract outside of North America and
 localized versions of the Excite service in 15 leading international markets.
 
     Cautionary note regarding forward-looking statements
     This press release contains forward-looking statements about Excite@Home's
 business that are subject to risks and uncertainties.  These statements
 include statements relating to the company's cash position and its ability to
 support its operations through the balance of the year, its financial outlook
 for future periods, including revenue and operating losses, and other
 statements of a forward-looking nature.  Actual results may differ materially
 due to a number of factors, including general adverse economic and industry
 conditions, increased weakening in demand for the company's advertising and
 marketing services, the company's ability to negotiate and execute definitive
 agreements with AT&T as contemplated by the Letter of Agreement mentioned in
 this press release, the company's ability to raise funds through debt or
 equity financing, the company's ability execute on its expense reduction
 plans, the company's incurrence of unanticipated expenses, particularly to
 continue to improve the performance of the company's broadband network, and
 the company's ability to find buyers for certain business units.  There can be
 no assurance that the company will be able to achieve any of fund raising or
 cost reduction objectives rapidly enough to avoid a material adverse impact on
 its operations and liquidity.  The preliminary first quarter results reported
 in this press release are subject to further review by the company, and the
 actual results may vary materially, particularly as a result of the impairment
 charge expected to be taken in the quarter.  Reported results should not be
 considered as an indication of future performance.  The matters discussed in
 this press release also involve additional risks and uncertainties described
 in Excite@Home's form 10-K and other filings with the Securities and Exchange
 Commission.  Excite@Home assumes no obligation to update the forward-looking
 information contained in this press release.
 
 

SOURCE Excite@Home
    REDWOOD CITY, Calif., April 17 /PRNewswire/ -- Excite@Home (Nasdaq:   ATHM),
 the leader in broadband, announced today that it expects to report first
 quarter 2001 revenues in the range of $140 million to $145 million, compared
 to $138 million in the first quarter of 2000, and a loss per share (excluding
 amortization of goodwill and other non-operational items) in the range of
 $0.14 to $0.15, compared to a loss of $0.01 per share in the first quarter of
 2000.  The company expects to report quarter-end cash and short-term
 investments totaling approximately $105 million, compared to $201 million at
 December 31, 2000.
     (Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/19990528/SFF034 )
     Worldwide subscribers to the company's @Home service totaled approximately
 3,200,000 as of March 31, 2001, an increase of approximately 450,000 or 16%
 from 2,750,000 at December 31, 2000.  Each of these figures excludes all
 subscribers of Cablevision Systems Corp., with whom Excite@Home has decided to
 terminate its relationship.  In prior periods, Cablevision subscribers had
 been included in the company's reported subscriber totals due to the
 companies' contractual relationship.  However, the vast majority of
 Cablevision subscribers did not utilize Excite@Home's network or content
 services and did not generate revenue for Excite@Home.  The company will seek
 to recover over 20 million performance-based Excite@Home warrants previously
 issued to Cablevision.
     "Our core broadband business is strong," said Excite@Home chairman and CEO
 George Bell.  "Subscriber growth continues at a rapid rate, our network is
 performing at record levels of scale and reliability, and we see important new
 opportunities developing in areas such as content delivery, wholesale services
 and premium services.  However, a weakening advertising environment has
 adversely affected our narrowband media business.  We must focus our financial
 and human resources on our core business, and make certain that we have the
 cash resources and the cost structure we need in order to realize the
 tremendous broadband opportunities before us."
     The company said that due primarily to the recent acceleration in the
 weakness of the market for online advertising and marketing services,
 Excite@Home now expects to report significantly lower revenues, greater
 operating losses and more rapid use of cash than previously forecast for the
 balance of 2001.  As a result, an impairment charge associated with the
 company's media businesses likely will be recorded in the company's first
 quarter results.  The company intends to release its final first quarter
 results and its outlook for future periods on April 23, 2001.
     In light of this weaker financial outlook, Excite@Home is taking several
 immediate measures to conserve cash and raise additional funds to continue its
 leadership in broadband services.  These measures include:
 
     -- Adoption of a revised operating plan with lower expenses than
        previously forecast.
     -- Execution today of a non-binding Letter of Agreement with AT&T under
        which AT&T would provide Excite@Home with $75 million to $85 million in
        connection with the restructuring of the backbone fiber agreement
        between the companies and with a joint initiative to maintain and
        improve current network performance levels.
     -- Negotiation of additional debt and/or equity financing from third
        parties.
     -- Continued efforts to focus the company's strategy and resources around
        its broadband franchise through the potential sale or restructuring of
        its media operations not directly supporting the company's broadband
        strategy.
 
     While there can be no assurance that the company will be successful in
 achieving its targeted expense reductions, completing the definitive
 agreements contemplated by the Letter of Agreement with AT&T or otherwise
 raising sufficient additional funds to finance its operations on a timely
 basis, these measures represent a concerted effort to support the company's
 core broadband franchise.  If the company does not achieve its targeted
 expense reductions and raise at least $75 million to $80 million by the end of
 the second quarter, there would be a material adverse impact on the company's
 operations and liquidity.
 
     Conference call to discuss today's announcement
     Excite@Home will host a conference call to discuss this announcement at
 6:00 a.m. Pacific Time today, April 17th.  A live webcast and archived replay
 of the teleconference will be available at the company's investor relations
 website, www.excitehome.net/ir.
 
     Conference call to discuss first quarter results
     Excite@Home's first quarter results teleconference will be held on Monday,
 April 23, 2001 at 2:00 p.m. Pacific Time.  A live webcast and archived replay
 of the teleconference will be available at the company's investor relations
 website, www.excitehome.net/ir.
 
     About Excite@Home
     Excite@Home is the leader in broadband, offering residential and
 commercial services, with a global footprint of 74 million homes under
 long-term contract.  Excite@Home offers consumers residential broadband
 services and businesses high-speed commercial services.  Excite@Home has over
 14 million cable franchise homes under contract outside of North America and
 localized versions of the Excite service in 15 leading international markets.
 
     Cautionary note regarding forward-looking statements
     This press release contains forward-looking statements about Excite@Home's
 business that are subject to risks and uncertainties.  These statements
 include statements relating to the company's cash position and its ability to
 support its operations through the balance of the year, its financial outlook
 for future periods, including revenue and operating losses, and other
 statements of a forward-looking nature.  Actual results may differ materially
 due to a number of factors, including general adverse economic and industry
 conditions, increased weakening in demand for the company's advertising and
 marketing services, the company's ability to negotiate and execute definitive
 agreements with AT&T as contemplated by the Letter of Agreement mentioned in
 this press release, the company's ability to raise funds through debt or
 equity financing, the company's ability execute on its expense reduction
 plans, the company's incurrence of unanticipated expenses, particularly to
 continue to improve the performance of the company's broadband network, and
 the company's ability to find buyers for certain business units.  There can be
 no assurance that the company will be able to achieve any of fund raising or
 cost reduction objectives rapidly enough to avoid a material adverse impact on
 its operations and liquidity.  The preliminary first quarter results reported
 in this press release are subject to further review by the company, and the
 actual results may vary materially, particularly as a result of the impairment
 charge expected to be taken in the quarter.  Reported results should not be
 considered as an indication of future performance.  The matters discussed in
 this press release also involve additional risks and uncertainties described
 in Excite@Home's form 10-K and other filings with the Securities and Exchange
 Commission.  Excite@Home assumes no obligation to update the forward-looking
 information contained in this press release.
 
 SOURCE  Excite@Home