Pathnet Develops Larger Fiber Presence in Fiscal 1998

Digital telecommunications company Pathnet Inc. (Washington, DC) had fourth quarter (ended December 31) revenue of $534,000, a more than five-fold increase over $100,000 reported in the fourth quarter of 1997. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter was a loss of $4.5 million, up as expected, from a loss of $1.6 million in the same period of the prior year.

For fiscal 1998 (ended December 31), the company recorded revenue of $1.6 million, up from $200,000 in 1997. EBITDA loss for the year totaled $15.6 million, compared to a loss of $4.1 million the previous year.

With the activation of Pathnet's first customers in the second half of 1998, and the anticipated completion of several additional network routes in the first half of 1999, the company expects telecommunications revenue to continue to increase throughout all four quarters of 1999.

"We began the year in a virtual start-up mode, with no network, no customers, and no traffic— and we ended the year with 2,000 network miles completed and carrying traffic, and an additional 5,000 miles under construction," Richard A. Jalkut, president and CEO, said.

Pathnet has partnered with utility, pipeline, and railroad companies to upgrade and aggregate existing wireless infrastructure to a SONET network. Recently, the company announced an expansion of its business strategy to include construction and deployment of digital networks using both fiber-optic and wireless technologies. The company plans to construct and deploy fiber facilities on selected routes and integrate those routes with its existing and future wireless facilities.