PSN reports higher losses from January to September

JAKARTA (JP): Publicly listed satellite operator PT Pasifik Satelit Nusantara (PSN) reported here yesterday total losses of US$7.34 million in the first nine months of this year, up sharply from $282,472 in losses during the same period last year.

The company reported a loss of $0.09 in its earnings per share in the January to September period in 1997. During the same period in 1996, PSN reported no earnings per share.

PSN's revenues reached $11.3 million in the third quarter of this year, up from $7.5 million in 1996.

The company's gross profit in the third quarter was $3.7 million, down from $4.65 million in the same period of 1996.

All of these financial results were based on Indonesian generally accepted accounting principles.

"But under U.S. Generally Accepted Accounting Principles (GAAP), PSN net losses for the quarter ending on Sep. 30, was $4.24 million or $0.05 per share, compared with a net income of $220,564, or approximately a break even on a per share basis in the third quarter of 1996."

For the first nine months of 1997, under GAAP, PSN recorded a net loss of $7.08 million or $0.09 per share, compared to a net loss of $675,335, or $0.01 per share a year ago, the company said.

"Year-to-date revenues were up by 51 percent, and third quarter revenues decreased 6 percent. The third quarter comparison reflects the absence in the 1997 period of transponder leasing revenues from the Palapa-B2P satellite which was retired in April 1997."

PSN was set up to operate inclined-orbit satellites previously owned by state-owned PT Telkom. PSN currently controls 14 transponders in the Mabuhay satellite of the Philippines which was launched last August. PSN also has five transponders in the Palapa C1 and six transponders in the Palapa C2 satellites of PT Satelindo.

PSN's president, Adi R. Adiwoso, said here yesterday that his company remained on track operationally and financially through the first nine months of 1997.

"During the third quarter we continued the rapid expansion of our Xpress Connection very small aperture terminals (VSAT) telephone service, the first of PSN's three development-stage business," he said.

PSN, which operates satellites and VSAT, is listed on the Nasdaq capital market in the United States. The company has incorporated two subsidiaries, PT ACeS and PT M2A, which will operate cellular telecommunications and multimedia satellites respectively.

According to Adiwoso, PSN which has installed over 1,000 terminals mainly in West Java up to last month, plans to install a total of 2,000 terminals by the end of 1997.

"Additionally, we are preparing to sign a new agreement with our equipment provider, Titan Corporation, to provide an additional 10,000 Xpress terminals as we continue rolling out the service," he said

PSN expected to realize a lower installed terminal cost due to volume pricing on the new contract with Titan and reduced hardware costs for other components of the system, he added.

"Both of our other developmental-stage businesses, ACeS and M2A, also remain on track for 1999 launches." (icn)