Dish Network 1998 Annual Report Download - page 81

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–34
14. Quarterly Financial Data (Unaudited)
EchoStar’s quarterly results of operations are summarized as follows (in thousands):
Three Months Ended
March 31 June 30 September 30 December 31
Year Ended December 31, 1997:
Total revenue ............................. $ 69,524 $ 98,691 $ 130,038 $ 179,165
Operating loss ............................ (44,596) (43,021) (88,725) (47,929)
Net loss...................................... (62,866) (63,789) (115,157) (71,013)
Basic and diluted loss per share ... $ (1.54) $ (1.54) $ (2.78) $ (1.80)
Year Ended December 31, 1998:
Total revenue ............................. $ 214,439 $ 245,838 $ 235,407 $ 286,982
Operating loss ............................ (21,165) (16,244) (15,350) (70,132)
Net loss...................................... (49,886) (45,717) (51,971) (113,308)
Basic and diluted loss per share ... $ (1.30) $ (1.21) $ (1.35) $ (2.72)
15. Subsequent Events
Media4
On February 2, 1999, EchoStar consummated the acquisition of privately-held Media4, Inc., (“Media4”),
an Atlanta-based supplier of broadband satellite networking equipment for personal computers. In connection with
the acquisition, EchoStar issued approximately 170,000 shares of its Class A common stock valued at approximately
$10 million for 100% ownership of Media4. The acquisition of Media4 will be accounted for as a purchase
transaction.
PrimeStar
On February 26, 1999, EchoStar announced that it had sent a letter to the Board of Directors of PrimeStar
expressing its desire and willingness to make an offer to purchase PrimeStar’s high-powered DBS assets. These
assets consist of two high-powered DBS satellites, Tempo I and Tempo II, and 11 of the 32 DBS frequencies
capable of coverage of the entire continental United States, located at the 119° WL orbital position. EchoStar’s
letter stated that it was ready, willing and able to make an offer to pay $600 million of total consideration (including
assumed liabilities) for these assets on terms, other than price, substantially the same as those contained in an
agreement among PrimeStar, Hughes Electronics Corporation, and certain other persons dated January 22, 1999.
The deadline for a response to this letter has subsequently expired. Finalization of a future offer would be
conditioned on the ability of PrimeStar to enter into and perform its obligations under a definitive agreement with
EchoStar without breaching any contract to which PrimeStar or any of its affiliates is a party or by which they are
otherwise bound.