PSN reports higher losses from January to September

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)