Dish Network 1999 Annual Report Download - page 3

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1
PART I
All statements contained herein, as well as statements made in press releases and oral statements that may
be made by us or by officers, directors or employees acting on our behalf, that are not statements of historical fact
constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause
our actual results to be materially different from historical results or from any future results expressed or implied by
such forward-looking statements. Among the factors that could cause our actual results to differ materially are the
following: a total or partial loss of a satellite due to operational failures, space debris or otherwise; an
unsuccessful launch or deployment of our sixth satellite, EchoStar VI; delays in the construction of our seventh,
eighth or ninth satellites; a decrease in sales of digital equipment and related services to international direct-to-
home or DTH service providers; a decrease in DISH Network subscriber growth; an increase in subscriber
turnover; an increase in subscriber acquisition costs; impediments to the retransmission of local or distant
broadcast network signals which could result from pending litigation; an inability to obtain certain retransmission
consents; our inability to retain necessary authorizations from the FCC; an increase in competition from cable,
direct broadcast satellite, other satellite system operators, and other providers of subscription television services;
the introduction of new technologies and competitors into the subscription television business; a change in the
regulations governing the subscription television service industry; the outcome of any litigation in which we may be
involved; general business and economic conditions; and other risk factors described from time to time in our
reports filed with the Securities and Exchange Commission. In addition to statements that explicitly describe such
risks and uncertainties, readers are urged to consider statements that include the terms “believes,” “belief,”
“expects,” “plans,” “anticipates,” “intends” or the like to be uncertain and forward-looking. All cautionary
statements made herein should be read as being applicable to all forward-looking statements wherever they appear.
In this connection, investors should consider the risks described herein and should not place undue reliance on any
forward-looking statements.
Item 1. BUSINESS
GENERAL
Our common stock is publicly traded on the Nasdaq National Market under the symbol “DISH”. We conduct
substantially all of our operations through our subsidiaries. We operate three business units:
• The DISH Network – our direct broadcast satellite, or DBS, subscription television service in the
United States. As of December 31, 1999, we had approximately 3.4 million DISH Network
subscribers.
• EchoStar Technologies Corporation – our engineering division, which is principally responsible for the
design of digital set-top boxes, or satellite receivers, necessary for consumers to receive DISH
Network programming, and the sale of set-top boxes to international direct-to-home satellite operators.
We have also provided uplink center design, construction oversight and other project integration
services for international direct-to-home ventures.
• Satellite Services – our division that provides video, audio and data services to business television
customers and other satellite users.
Recent Developments
During February 2000, we announced the formation of a joint venture with OpenTV Corp. intended to offer
DISH Network customers and other video platforms around the world a low cost, interactive digital receiver with a
built-in hard disk drive that will permit viewers to pause and record live programs without the need for video tape.
The new set-top box, expected to be available during the fourth quarter of 2000, would offer interactive television
services developed by OpenTV. In connection with formation of the joint venture, OpenTV and EchoStar licensed
certain intellectual property rights to the joint venture and we were issued 2,252,252 shares of OpenTV common
Stock. The shares of OpenTV common Stock are subject to forfeiture if we fail to activate the OpenTV system in at
least 500,000 set top boxes on or before February 23, 2003.