U.S. Wireless reports Q1 consolidated operating revenues of $103,127

Fiscal 2001 Q1 (ended June 30, 2000) revenue for location-based services company U.S. Wireless Corp. (San Ramon, CA) was $103,127 for the, compared to no revenue for the comparable prior year period. Net losses for the fiscal 2001 first quarter were $3.1 million or $0.16 per share, compared to $2.7 million or $0.23 per share, for the same period in fiscal 2000. Weighted average common shares outstanding for the fiscal 2001 first quarter were 19,183,981 compared to 11,996,280 for the prior year period. The increase in common shares outstanding included the conversion of portions of the Series A Preferred stock and Series B Preferred stock by the company.

During the quarter, U.S. Wireless focused on the execution of the development of its nationwide wireless location service bureau, fundraising and strategic partnerships, and relationships in the areas of deployment, manufacturing and business development.

First quarter results
Consolidated operating revenues were $103,127 for the three months ended June 30, 2000, compared to no revenues for the prior year. The increase in operating revenue is mainly attributable to a contract the company received from Maryland's Department of Transportation to provide location enhanced traffic information along the Maryland Beltway. The Company also received a contract from the Virginia Department of Transportation, which did not contribute revenues during the quarter.

Costs of operations and expenses, including research and development and operating expenses, totaled $3.3 million for the three months ended June 30, 2000 as compared to total costs and expenses of operations of $1.9 million for the prior year. Increased costs were primarily attributable to increased field trial activities and the commencement of an Operational Readiness Trial in the Maryland/Washington DC/Virginia Metro area, where the company built additional sites to expand coverage and where it has established an east coast corporate office in Reston, VA. Expenses were also incurred for engineering and research and development related to the continued refinement, testing and deployment of the RadioCamera system, as well as for stock based compensation. The June 2000 period also included $123,961 in costs of revenue for the Maryland contract.

Research and development expense totaled $1.1 million for the period ended June 30, 2000, as compared to $0.7 million in the prior year period. The increase is primarily the result of increased personnel costs related to software and hardware development projects.

As of June 30, 2000, the company had working capital of $22.8 million and cash and cash equivalents of $25.2 million. During the quarter, the company raised approximately $21.1 million in net proceeds in a private placement of Series C Preferred Shares with American Tower Corp.

Edited by Ellen Jensen
Managing Editor, Wireless Networks Online