Earthlink 2002 Annual Report Download - page 4

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FORWARD-LOOKING STATEMENTS
Certain statements in this Form 10-K are forward-looking statements within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The words "estimate," "plan,"
"intend," "expect," "anticipate," "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking
statements are found at various places throughout this report and in the documents incorporated herein by reference. EarthLink, Inc. disclaims
any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise. Although EarthLink, Inc. believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals
will be achieved. Important factors that could cause actual results to differ from estimates or projections contained in the forward-looking
statements are described under "Safe Harbor Statement" in Item 7.
PART I
Item 1. Business
Overview
EarthLink, Inc. ("EarthLink," "we," "us" or "our") is a leading Internet service provider ("ISP"), providing reliable nationwide Internet
access and related value-added services to its individual and business customers. EarthLink was formed in February 2000 as a result of the
merger of EarthLink Network, Inc. ("EarthLink Network") and MindSpring Enterprises, Inc. ("MindSpring"). The word "Network" was
dropped from the name of the combined company to differentiate it from the former EarthLink Network. The combination of EarthLink
Network and MindSpring resulted in one of the largest ISPs in the U.S.
We provide a variety of Internet access and related services, including narrowband access, wireless access, broadband or high speed
access, and web hosting. We focus on providing a high-quality user experience for our users through reliable access, superior customer service
and support, and useful features like email, web storage, spam filtering and Pop-Up Blocker
SM
. Our customer base grew from approximately
4.8 million paying customers on December 31, 2001 to approximately 5.0 million paying customers on December 31, 2002. We have grown
our customer base organically through traditional marketing channels such as direct marketing; alliances with strategic partners and original
equipment manufacturers (OEMs); retail outlets; and word of mouth and referral marketing. We have also grown our customer base through
acquisitions of businesses, including the purchases of OneMain.com, Inc. ("OneMain"), Cidco Incorporated ("Cidco"), and PeoplePC Inc.
("PeoplePC") in September 2000, December 2001, and July 2002, respectively, and the acquisitions of customer bases.
Our corporate offices are located at 1375 Peachtree St., Atlanta, Georgia 30309, and our telephone number at that location is (404) 815-
0770.
Our Business Strategy
Our goal is to sustain and build upon our strong position in the U.S. Internet access market by providing a high-quality customer
experience; focusing on high growth opportunities, such as broadband; increasing the range of services offered, including new forms of access,
value-added services, and a differentiated service offering targeting the value segment; leveraging the scale of our customer base and existing
infrastructure to improve profitability; and pursuing acquisitions to supplement growth achieved through traditional sales and marketing
channels.
1
Continue to emphasize customer service, fostering increased customer loyalty and lower churn
We continue to focus significant resources on attracting and retaining subscribers by providing them with fast and reliable access to the
Internet through a variety of platforms and services. By providing a service that is easy to install and use, in addition to offering high-quality
customer service and technical support, we intend to continue to achieve high levels of customer satisfaction. In addition, we provide a
customizable personal start page that lets subscribers create their own launch point to the Internet. As a result, subscribers can search, organize,
shop and communicate—via email, chat or Instant Messaging—
all from one convenient location. Historically, we have received recognition for
our focus on providing fast and reliable access to the Internet, including "Best in Service" and quality awards from industry publications
including MacHome, PC World.Com and Mobile Computing. In 2002, EarthLink received additional recognition for its customer satisfaction
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
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EXHIBIT INDEX
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