Matt beat me to the punch, so I'll just add a "yah...what Matt said."
Best, Brad -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Matt Liotta Sent: Tuesday, September 18, 2007 4:53 PM To: WISPA General List Subject: TowerStream (was Re: [WISPA] OT: video of news segment in Idaho about a newlocalWiMAX service) Patrick Leary wrote: > Btw, Tower Stream is another good example. For years (and still today), > they have been deploying unlicensed gear in big cities for the T1+ > capacity commercial customers (still a sweet spot for wireless > broadband). This past spring, even without licensed spectrum holdings, > they did an IPO and raised over $50 million. Their current valuation is > near $100 million. Tower Stream excelled at some things that other WISPs > neglect, which is getting their name out there and carefully groomed > their brand (all that stuff some techy-oriented WISPs might think is > useless fluff effort). But make no mistake, they are by definition a > WISP...JUST LIKE YOU: they use unlicensed frequencies to deploy and sell > Internet services. They have been cash flow positive for years. They > just chose to aim high and not be deterred by those who said it could > not be done. > > People, what do YOU aspire to? What do YOU believe is possible? > I believe your information is not correct on TowerStream. First of all, they didn't do an IPO. They did what is referred to as an APO (acquisition public offering). Specifically, they did a reverse merger into University Girls Calendar and were then traded on the OTBB. They did raise several million dollars as part of the APO. In May, the graduated from the OTBB to the regular Nasdaq market. The first thing they did afterwards was to make a secondary offering for $40 million dollars, which was a 32% discount at the time. This caused a huge dilution among their shareholders and ultimately led to them losing half of their market share. Nevertheless, they did raise a ton of money. They are not cash flow positive and haven't been. In 2007Q1 they lost $1.64 million, which is pretty close to what they lost in 2005 and 2006 put together. Unfortunately, their revenues are flat. If you look at their revenues released 2007Q2 they increased gross revenue by $46,000 year over year. Read it again... after spending millions they only increased gross revenue by $46,000 in 12 months. "We cannot anticipate when, if ever, our operations will become profitable," they state in their fillings, which seems honest enough. But hey, more power to them if they can raise that kind of money. We'd laugh all the way to the bank if someone offered us a similar valuation. -Matt ---------------------------------------------------------------------------- ---- ** Join us at the WISPA Reception at 6:30 PM on October the 16th 2007 at ISPCON ** ** ISPCON Fall 2007 - October 16-18 - San Jose, CA www.ispcon.com ** ** THE INTERNET INDUSTRY EVENT ** ** FREE Exhibits and Events Pass available until August 31 ** ** Use Customer Code WSEMF7 when you register online at http://www.ispcon.com/register.php ** ---------------------------------------------------------------------------- ---- WISPA Wants You! Join today! http://signup.wispa.org/ ---------------------------------------------------------------------------- ---- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -------------------------------------------------------------------------------- ** Join us at the WISPA Reception at 6:30 PM on October the 16th 2007 at ISPCON ** ** ISPCON Fall 2007 - October 16-18 - San Jose, CA www.ispcon.com ** ** THE INTERNET INDUSTRY EVENT ** ** FREE Exhibits and Events Pass available until August 31 ** ** Use Customer Code WSEMF7 when you register online at http://www.ispcon.com/register.php ** -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
