Charles Hoffman, Covad president and chief executive officer, said: "In 2006, Covad achieved its goals of becoming cash flow, excluding LPVA expenditures, and A-EBITDA positive while accelerating our transition from being a provider of wholesale broadband services to becoming a direct provider of high-growth, high-margin offerings like Voice over IP, line-powered voice, and business-class wireline and wireless broadband.
The increase from the third quarter of 2006 was attributable to increases in broadband subscription revenue from T-1, business ADSL and LPVA of $1.
0 million related to the build-out of LPVA service and $0.
4 million related to the LPVA build-out expenditures, which is being funded with the proceeds from the strategic agreement with EarthLink, and $1.
The increase from the second quarter of 2006 was attributable to increases in broadband subscription revenue from T-1, business ADSL and LPVA of $2.
6 million related to the LPVA build-out expenditures, which is being funded with the proceeds from the strategic agreement with EarthLink, cash, cash equivalents and short-term investments, and restricted cash and investments increased by $1.
Examples of forward-looking statements include the company's expected revenue, net loss, A-EBITDA, net usage of cash, cash equivalents and short term investments, including restricted cash and investments and LPVA build-out cash outlay.
0 million, excluding LPVA project operating expenses of approximately $3.
SELECTED FINANCIAL DATA (unaudited) (in thousands) Business Outlook A-EBITDA Calculation (Note 2) Q3-2006 Full Year-2006 Projected Range of Projected Range of Results Results Net loss $(13,000) $ (8,800) $(19,500) $ (9,500) Plus:Other income (expense), net 2,200 1,900 6,500 5,500 Depreciation and amortization of property and equipment 8,700 8,300 34,000 32,000 Amortization of collocation fees and other intangible assets 2,800 2,300 13,000 12,000 Employee stock-based compensation 800 800 3,000 3,000 A-EBITDA (Note 2) 1,500 4,500 36,000 43,000 LPVA project operating expenses 3,500 3,500 7,000 7,000 A-EBITDA (Note 2), excluding LPVA project operating expenses $ 5,000 to $ 8,000 $ 44,000 to $ 50,000 Notes to Unaudited Selected Financial Data 1.