In a statement addressed to shareholders and released to the Bermuda Stock Exchange KeyTech Chairman, Dr. James A. C. King noted; "These results reflect the impact of the July 1st reduction in international access charges and the concomitant increase in local access charges.
There continues to be a strong demand for connectivity and we are responding by aggressively investing in upgrading our network. This up-grade will not only increase capacity, but will also enhance capability.
"We continue to struggle with regulatory compliance issues in our Logic subsidiary. The capabilities of modern technology have outstripped the historic boundaries, which shaped our current regulatory framework. The Internet provides the capability for the exchange of data in a global arena. This digital technology no longer differentiates between voice traffic and data, and thus clearly identifies why change must occur as this will be further challenged with the availability of satellite communication via handheld devices.
The two major shareholders in Bermuda CableVision - KeyTech and the MacDonald's Group, have reached a settlement, thus allowing the Company an opportunity for further growth and development.
The overall prospects of the Company are good. Our Revenues continue to grow and whilst expenses are up in the near term as a result of our accelerated investment in the network, this will assist towards our goal of becoming a strong ands efficient provider of communications services in the new millennium."
Financial Highlights:
September 30 1999 $ 1998 $
Revenues 42,751,818 40,721,734
Expenses 37,168,910 33,487,714
Operating Income 5,582,908 7,234,020
Net Income 5,712,979 7,140,443
Shareholders' Equity 84,464,923 77,998,879
Total Liabilities & Shareholders' Equity 134,382,986 134,101,125
Earnings per Common Share 2.91 3.51