EchoStar's year-end 1999 and fourth-quarter losses widened after expenditures aimed at attracting subscribers more than doubled. EchoStar reported revenue of $1.6 billion for 1999, compared to $983 million for the corresponding period in 1998. Pre-marketing cash flow totaled $554 million for the year, compared to $300 million during 1998. EchoStar recorded an operating loss of $347 million during 1999, compared to $123 million reported in 1998. The company's net losses totaled $793 million and $261 million during those same periods. As for the fourth quarter, operating losses totaled $161 million, compared to $70 million reported for the same three-month period in 1998. The increased operating and net losses were attributed to record customer growth and increased up-front acquisition costs. During 1999, EchoStar's DISH Network added 1.47 million net new subscribers, an increase of 63 percent from 1998. The higher losses, however, concerned some on Wall Street. "We were alarmed by the G&A and cost of DTH sales line items, which were up more than 100 percent quarter-to-quarter," said William Kidd of C.E. Unterberg, Towbin.

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Sea Launch Suffers Launch Failure

A Zenit rocket carrying the first ICO Global Communications satellite exploded shortly after taking off from the Sea Launch platform in the South Pacific Sunday. The satellite, built by Hughes Space and Communications, was the third launch for the Boeing-led venture. Sea Launch successfully launched a dummy satellite a year ago and a DirecTV satellite in October. The lost satellite was valued at $100 million. Not only does the loss represent another setback for to ICO, which filed for bankruptcy protection last year, it's another blow to the struggling mobile satellite services market. "We are extremely disappointed with the failure of the ICO mission and are working closely with the Sea Launch partners to understand the anomaly," said Jim Albaugh, president of Boeing's Space and Communications Group. "We regret the impact that this failure will have on both ICO and Hughes." In addition to Boeing, Energia of Russia, Kvaerner Maritime of Norway and KB Yuzhnoye/PO Yuzhmash of the Ukraine are partners in the Sea Launch venture.

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XM Prices Offering

XM Satellite Radio priced its $325 million high yield offering, consisting of 14% Senior Secured Notes due 2010 with attached warrants to purchase approximately 2.6 million shares of common stock. A portion of the net proceeds will be reserved to provide for payment in full of interest on the notes for the first six scheduled payments. XM is one of two DARS licensees. The company is expected to debut its satellite-delivered audio service in early 2001.

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SkyFORUM Tackles Interactive TV

The spring SkyFORUM in New York City will tackle the emerging interactive TV business and how home satellite is playing an important leadership role in getting the future of television into homes. SkyFORUM's first panel, "Interactive Media: Supply and Demand," will focus on interactive TV and the impact it has on the consumer, the advertising community and content providers. The future of personal/digital video services and the challenges ahead for these new technologies will also be discussed. Panelists include Jan Steenkamp of OpenTV, Stacy Jolna from TiVo, Allan Thygesen with Wink, and Jacqueline Friedman of WebTV. The 13th semi-annual SkyFORUM satellite/financial symposium will be held Tuesday, March 28, at the Marriott Marquis in New York City. Pre-registration for the event ends March 17. After that date, registration fees increase from $695 to $850 for general attendees and from $595 to $750 for SkyTRENDS partners. Registrations will continue to be accepted until the day of the event. For more information or to register, please visit www.sbca.com or contact Rachel Zink at 703-549-6990, ext. 363.

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TECHNOLOGY: Galaxy XR In Service