A recent SailPoint Market Pulse Survey examined the current state of employee compliance with corporate policy related to private, sensitive data to help identify weak links in IT risk mitigation programs. Conducted by Harris Interactive on behalf of SailPoint, the survey of 3,484 employees in the United States, Great Britain and Australia found that an alarming number of employees are exposing their companies to internal sabotage and theft.
To help prevent one of the most challenging types of security breaches - "insider threats" - organizations need to fully understand "who has access to what" across their enterprises and put in place proper IT controls to ensure that access rights are appropriate. SailPoint's Market Pulse Survey underscores this very real risk to organizations: 22% of US, 29% of Australian and almost half of British (48%) employees who have access to their employer's or clients' private data, and who answered the question, indicated they would feel comfortable doing something with that data, regardless if that access was intentional or accidental. Further, 10% of American, 12% of Australian and 27% of British employees with access admitted they would forward electronic files to a non-employee, and 9% of Americans, 8% of Australians and 24% of Britons of these same groups admitted they would copy electronic data and files to take with them when they leave a company.
"Organizations should be very concerned about the number of employees that openly admitted to misusing proprietary data," said Jackie Gilbert, vice president of marketing and cofounder at SailPoint. "These results show that insider threats represent a significant risk to the business. Some of the biggest and most costly data breaches have been directly tied to company employees. Having a written policy is not enough to ensure data security. Organizations need to have automated controls in place to monitor and manage user access controls in order to minimize the risk of insider theft or sabotage."
SailPoint's Market Pulse Survey also questioned if an employee would feel comfortable profiting from proprietary information by selling it on the Internet. While only 5% of American and 4% of Australian employees with access who answered the question selected this response, an alarming 24% of British employees with access said they would feel comfortable selling data. Added Gilbert: "Unfortunately, it's quite easy these days for employees to sell personal data on the Internet and there are not enough controls in place to prevent this theft from happening. It's startling to see such a high number of Great Britain employees saying they would profit from selling proprietary data on the Internet. That's a wake up call that companies need to take a more aggressive stance, particularly in certain geographies."
Identity governance enables companies to manage the risk of insider threats while allowing necessary access for employees by strengthening an organization's controls over both permanent employee and contractor access privileges. Identity governance minimizes risk by eliminating high-risk accounts, proactively detecting and remediating policy violations, and automating the review of user access privileges on a regular basis to ensure they align with corporate policy.
In addition to surveying employees about access to private, sensitive data, the SailPoint Market Pulse survey also asked them about accessing corporate date through the use of mobile devices. The results highlight the importance of automatically de-provisioning employees given the proliferation of mobile devices in the workforce. Specifically, 15% of American, 29% of British and 18% of Australian employees use their mobile devices to access their company's private Intranet or portals.
"Mobile devices can make it easier for a disgruntled employee to do a significant amount of damage," said Gilbert. "If an employee has just been fired, it's no longer sufficient to turn off email and confiscate their laptop. A disgruntled employee can do a lot of damage from a mobile device before he or she even reaches the elevator. As part of a successful identity governance strategy, companies must have the ability to immediately revoke all access privileges including access to private Intranet or portals." About SailPoint SailPoint, a leader in identity management, helps the world's largest organizations to mitigate risk, reduce IT costs and ensure compliance. The company's award-winning software, SailPoint IdentityIQ™, provides superior visibility into and control over user access to sensitive applications and data while streamlining the access request and delivery process. As the industry's first business-oriented identity governance suite, IdentityIQ quickly delivers tangible results with risk-aware compliance management, closed-loop user lifecycle management, flexible provisioning, an integrated governance model, and identity intelligence. Visit www.sailpoint.com to learn more. Harris Interactive Survey Methodology This study was conducted online by Harris Interactive on behalf of SailPoint among a total of 2,241 adults aged 16+ within Great Britain and 1,023 adults age 18-64 in Australia from May 25-June 2, 2011 and among 2,309 adults aged 18 and older from May 24-26, 2011 via its QuickQuery omnibus product in the United States. Of these, 1,407 British, 707 Australian and 1,370 U.S. adults were employed full-time, part-time and or self-employed, and among these, 939 British, 378 Australian and 701 U.S. employees have access to employer's or clients' computer systems. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. This data were also weighted to reflect the composition of the adult online population.
The online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. The complete survey methodology, including weighting variables, is available upon request by contacting SailPoint via www.sailpoint.com. SailPoint, the SailPoint logo, IdentityIQ, and all techniques are trademarks or registered trademarks of SailPoint Technologies, Inc. in the U.S. and/or other countries. All other products or services are trademarks of their respective companies.
Keywords: Networks.
This article was prepared by Information Technology Newsweekly editors from staff and other reports. Copyright 2011, Information Technology Newsweekly via VerticalNews.com.
M2 PRESSWIRE-July 1, 2011-: ACCC issues guidance on fibre and cable broadband 'speed' claims(C)1994-2011 M2 COMMUNICATIONS
RDATE:01072011
The Australian Competition and Consumer Commission today published an Information Paper to assist providers of hybrid fibre-coaxial (HFC) and fibre to the premises (FTTP) broadband internet services in complying with the Competition and Consumer Act 2010 .
Internet Service Providers (ISPs) that make 'speed' claims must have a reasonable basis for asserting performance levels are attainable in practice, not just in theory.
"ISPs that under-deliver on their promises and fail to demonstrate a reasonable basis for their claims will be liable to ACCC enforcement action", ACCC chairman Graeme Samuel said.
"The increase in the availability of high-speed broadband services can offer significant benefits to consumers and an opportunity for greater competition between retail ISPs."
"However, for these benefits to be fully realised, ISPs must ensure that they do not market their services in a way that misleads consumers and results in an unfair competitive advantage."
The Information Paper provides guidance to ISPs on the factors to consider when making representations regarding the data transfer rates -- or 'speeds' -- available to customers acquiring HFC or FTTP internet services. The Paper relates to services provided over the National Broadband Network, as well as services being provided over pre-existing HFC and FTTP networks.
The ACCC will hold seminars at the ACCC's Sydney and Melbourne offices, from 1-2pm on 19 and 21 July 2011 respectively, to engage with industry and other stakeholders on the Information Paper. Representatives in Adelaide, Brisbane, Canberra, Hobart and Perth will be able to attend the seminar on 19 July 2011 via the ACCC's video conferencing facilities.
Any parties wishing to attend these seminars are encouraged to contact Rebecca Larsen on (03) 9290 1939 or email rebecca.larsen@accc.gov.au .
The Information Paper HFC and Optical Fibre Broadband "Speed" Claims and the Competition and Consumer Act 2010 will be available on the ACCC's website. Two previous papers that addressed ADSL and mobile/ wireless broadband internet services are also available on the ACCC website.
((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com)).
Byline: STEPHEN MAGUIRE
MEET Ireland's youngest Masterchef - five-year-old Ciaran Crawford.
The cheeky Co Donegal boy has become an internet sensation after making a series of cookery videos.
Ciaran, from Lifford, has produced two YouTube demonstrations in the kitchen of his house. And he might have the right chef's uniform but he is so small he has to stand on a chair to reach the table to make his delightful dishes.
The videos so far - for Irish Stew and lasagne - have received thousands of hits.
His teacher at Murlog National School Miss O'Donnell thought they were so good she played them in class so other pupils might pick up a few tips.
And Ciaran's dad Martin thinks his recipe for success might be down to him. He said: "I learned how to cook from my grandmother and my mother and Ciaran enjoys helping me to cook, so it's great to pass on the tradition.
"We just decided to make a video for the fun of it but it has really taken on a life of its own.
"It is getting a lot of comments form around the world including the US, Australia and across Europe. People are even asking when is he bringing out his book." However, Martin admitted his son might not be the next Conrad Gallagher or Jamie Oliver and isn't about to refurbish the family kitchen to cater for his son's cookery empire.
He added: "It's just a bit of fun but it's great to see him enjoying himself. Sure last week he told his teacher he wanted to be a spaceman.
"I just hope he doesn't ask me for a spacesuit next."
CAPTION(S):
HOT PROSPECT Little Ciaran Crawford shows surfers how to make lasagne
BEIJING, May 25 Asia Pulse - Highlights of today's newspapers:
- Chinese President Hu Jintao has expressed satisfaction with graduate students from Peking University who volunteered to teach in the western regions.
Hu wrote back to 18 volunteers on May 10, after he received a letter from the students who are now teaching in west China' s Tibet, Qinghai, Yunnan and Xinjiang.
"Despite hardships and with wholehearted devotion, you have played a positive role in boosting education in the western regions, and you have gained experiences, strengthened mind and improved abilities through grassroots practice," Hu said. "I am very satisfied with the progress you have made."
- Chinese Vice Premier Li Keqiang has called for the development of surveying and mapping services and better use of geographical information to serve the country's development.
Li visited an innovation base of the national surveying and mapping services and met with a group of top researchers on Monday, according to a statement issued by his office on Tuesday.
He said China attached great importance to the development of geographic information surveying and mapping sector because it is vital to the development of new industries, such as internet of things and the development of digital cities.
PEOPLE'S DAILY OVERSEAS EDITION:
- China's top legislator Wu Bangguo arrived in Cape Town on Tuesday, starting an official good-will visit to South Africa at the invitation of Speaker of South African National Assembly Max Sisulu.
In a written statement issued upon his arrival, Wu, chairman of China's National People's Congress (NPC) Standing Committee, China's top legislature, hailed that the China-South Africa relationship had advanced in an all-round way since the two countries established diplomatic ties in 1998.
- Chinese Vice President Xi Jinping met with Iranian Foreign Minister Ali Akbar Salehi on Tuesday, pledging to work closely with Teheran on the bilateral relationship.
Salehi came to Beijing on Sunday for a three-day visit, which coincided with the 40th anniversary of the establishment of China-Iran diplomatic ties.
Xi welcomed Salehi to China, his first since becoming foreign minister in January, saying the visit reflects the tremendous attention Iran gives to its relationship with China.
XINHUA DAILY TELEGRAPH:
- Chinese courts were told on Tuesday to pronounce a two-year suspension of execution for condemned criminals if an immediate execution is not deemed necessary.
The Supreme People's Court (SPC) said, in an annual report of the work of people's courts, that death penalty should only be applied to "a very small number" of criminals who have committed "extremely serious crimes."
Under the policy of "justice tempered with mercy," capital punishment reprieves should be granted as long as they are allowed by law, the supreme court said.
The people's courts have shown respect, in the use of death penalty, for the right to life, which is the most basic human rights, the report said.
- China's cell phone user grew by 41.39 million in the first four months of 2011 to 900.39 million in total, covering nearly two-thirds of the nation's population, according to the Ministry of Industry and Information Technology (MIIT).
The number of telephone subscribers exceeded 1.19 billion by the end of April, with the number of fixed-line subscribers dropping by 2.93 million to 291.45 million, according to statistics released Tuesday by the MIIT on its website.
By the end of April, third generation (3G) mobile telecommunication users in China reached 67.57 million, 20.52 million more than that of the end of 2010.
The number of broadband Internet users increased by 9.58 million in the Jan.-April period to 135.92 million, while the number of dial-up connection users dropped by 130,000 to 5.77 million.
GUANGMING DAILY:
- Authorities of Beijing, the capital city of China, are considering empowering the city's cultural relics preservation regulator with rights to veto any construction projects that could do harm to cultural and historic relics in the city.
The municipality's political advisory body, Beijing People's Political Consultative Conference, has advised this to the city government in a research report jointly conducted with Beijing Union University, calling on cultural relics regulator to supervise construction projects such as house developments in the city to better protect the relics of the city's history and culture.
CHINA SECURITIES JOURNAL"
- Citic Securities announced Wednesday it would sell 51 per cent stake in China Asset Management, China's leading public fund management firm, at a price of 7.56 billion yuan at least.
According to the announcement, the transaction, which has been approved by the State Asset Supervision and Administration Commission (SASAC), will be quoted in an asset and equity exchange in China.
China Asset Management was founded in April 1998. Citic Securities holds 100 per cent stake of the company. However, the China Securities Regulatory Commission (CSRC), the government regulator, has banned a single shareholder to hold more than 49 per cent stake in any public fund management company.
- China posted surpluses under both the current account and capital and financial account in the first quarter, according to data released by the State Administration of Foreign Exchange (SAFE) on Tuesday.
The surplus under the current account, which measures China's foreign trade, reached 29.8 billion U.S. dollars in the first quarter, down 18 per cent from a year earlier, SAFE said on its website. For the capital and financial account, China reported a surplus of 111.4 billion U.S. dollars, including 42.6 billion U.S. dollars of net inflow of foreign direct investment (FDI), according to the SAFE.
The surpluses under the current and capital and financial accounts raised China's international reserve assets by 141.2 billion U.S. dollars in the first quarter, of which 138 billion U.S. dollars was kept as foreign exchange reserves.
SHANGHAI SECURITIES NEWS:
- To better implement the measures to put house price in check and cool down overheated real estate industry, the Ministry of Housing and Urban-Rural Development (MOHURD) would make further efforts to maintain housing market supply and demand roughly in balance, house-type structure reasonable and house price basically in stable, Ni Hong, head of MOHURD's Department on Housing Reform and Development, said Tuesday.
The MOHURD official stressed that speculative investments and profit-oriented investment in houses will be strictly scrutinized by the government.
Meanwhile, the ministry will have the house price to harmonize with the country's economic and social development and with government's policy on the development of real estate industry.
- The reshuffle of China's State-owned enterprises (SOEs) received a new boost as Guoxin Corp., a state-owned asset management platform, started operation by taking over Huaxin Group, under the arrangement of SASAC.
This is the first time Guoxin Corp. plays the role as a platform to pool state-owned assets for future reshuffle.
Shao Ning, deputy director of SASAC, said the acquisition of Huaxin Group's assets signaled formal operation of Guoxin Corp.
(XIC) nt 25-05 1515
The American Association of Political Consultants (AAPC) has given the Gold Medal in the category of "Overall Campaigns, Candidate: Internet Campaign" to Targeted Victory, for the stellar work the latter company did on the successful senatorial campaign of Marco Rubio.
Rubio, a Republican, won election to the U.S. Senate from Florida in 2010 on his first try with nearly 49% of the vote. His use of the Internet contributed greatly to his success. On October 2, 2010, Rubio became the first Senate candidate in the country to pass 1,000,000 views on YouTube.
Targeted Victory expressed gratitude for the AAPC award, known as the Pollie, and credited its technology partner, marketing technology company Lotame, with helping it achieve those results.
"We're honored to receive a Pollie, the most coveted political award a company like ours can win," said Michael Beach, a partner at Targeted Victory. "As we said back in October, Targeted Victory plus Lotame equals the Audience Targeting Platform, or ATP. The surveys Lotame ran in particular geographic areas enabled our ATP to place ads more accurately, and to understand the audience feedback at a deeper level - thus to respond more quickly and accurately. The custom video units Lotame put together gave us even greater insight into what was working and what wasn't."
Rubio's campaign uploaded 275 videos. On average, each of those videos was watched 5,007 times. By contrast, former Florida Governor Charlie Crist, who ran as an independent, uploaded 81 videos, each of which garnered just 1,827 views. Similarly, Kendrick Meeks, who ran as the Democratic nominee, uploaded 55 videos, which averaged just 1,845 views each.
"We needed an Internet partner that understood audiences at a deep level," said Malorie Miller, a media consultant and partner at Something Else Strategies who worked on the successful Rubio campaign. "Targeted Victory and Lotame demonstrated again and again the ability to sift persuadable voters from those who had already made up their minds, and to mobilize the voters who might be leaning Rubio's way, but weren't sure they would actually go to the polls. Lotame was a vital tool in our voter contact plan that proved to be an invaluable asset that propelled the Rubio campaign to a historic margin of victory in a complicated three-way race."
"We're very proud of our tech partner, Targeted Victory, on winning three Pollies," said Lotame CEO Andy Monfried. "As voters and prospective voters continue to go online to express themselves and influence the opinions of others through content creation, the Audience Targeting Platform is ideally suited to help activate these advocates."
This story first appeared in Campaigns & Elections under the headline "How Campaign Consultants Helped Marco Rubio to Victory." About Targeted Victory Targeted Victory (TV) is a leader in online advertising, mobile communications, social networking, and integrated data management for political candidates and causes. Along with our technology services, we provide comprehensive web design and development services and strategic campaign management. Targeted Victory offers services in four core areas: mobile communication, online advertising, new media planning and integrated data management. We provide all of our clients with a custom strategy to best achieve their organizations goals, incorporating a combination of these core services and others that fit your needs. For more information, please visit: www.targetedvictory.com. About Lotame Lotame is a marketing technology company. Its flagship audience data management platform (DMP), Crowd ControlTM, integrates with web publishers to activate audiences and make data-driven display advertising a reality. The company provides advertisers with comprehensive online advertising solutions and publishers with a leading data management platform. Lotame is a member of the Network Advertising Initiative (NAI), the Interactive Advertising Bureau (IAB), and the Online Publishers Association (OPA). For more information, please visit: www.lotame.com.
Keywords: Advertising, Data Management, Democratic, Government, Information Technology, Information and Data Management, Lotame, Marketing, Politics, Republicans.
This article was prepared by Information Technology Newsweekly editors from staff and other reports. Copyright 2011, Information Technology Newsweekly via VerticalNews.com.
RESTON, Va., April 29 /PRNewswire-FirstCall/ --
* Consolidated operating revenues of $1.28 billion
* Consolidated operating income before depreciation and amortization, or OIBDA, of $341 million
* Net subscriber additions of 377,000
* Consolidated operating income of $213 million and consolidated net income of $48 million, or $0.29 per basic share
NII Holdings, Inc. [Nasdaq: NIHD] today announced its consolidated financial results for the first quarter of 2010. During the quarter, the Company added 377,000 net subscribers to its network, bringing its ending subscriber base to over 7.7 million, a 20% increase in the ending subscriber base compared to the end of the first quarter of 2009. Financial results for the quarter included consolidated operating revenues of $1.28 billion, a 33% increase compared to the first quarter of 2009, and consolidated OIBDA of $341 million for the quarter, a 39% increase compared to the same period last year.
For the first quarter of 2010, the Company generated consolidated operating income of $213 million and consolidated net income of $48 million, or $0.29 per basic share. Consolidated net income for the quarter included $25 million of pretax foreign currency transaction losses primarily related to the weakening of currency exchange rates of the Brazilian Real relative to the U.S. dollar during the first quarter of 2010 compared to the fourth quarter of 2009.
The Company continued to invest in the expansion of the coverage and capacity of its networks reporting consolidated first quarter 2010 capital expenditures of $134 million, of which $85 million was invested in Brazil.
"We are off to a tremendous start for the year, delivering excellent financial and operational results highlighted by significant improvement in churn and a record level of OIBDA during the quarter," said Steve Dussek, NII Holdings' Chief Executive Officer. "The foundation for our first quarter results was created last year when we implemented strategies to enhance customer retention and improve the quality of our customer base. The success of these strategies is evidenced across all of our markets, where churn levels have improved substantially when compared to the first quarter of last year. These efforts have enabled us to keep our highest value subscribers and grow our business profitably," he added.
NII Holdings' consolidated average monthly service revenue per subscriber (ARPU) was $47 for the first quarter of 2010, up $5 when compared to the same period last year due primarily to strengthening of local currencies. The Company also reported churn of 1.69% for the first quarter, a 42 basis point improvement over the level reported in the same period last year. Consolidated cost per gross add, or CPGA, was $278 for the first quarter 2010, up $23 relative to the first quarter 2009, but a $27 decline over the fourth quarter of last year.
"Our balanced approach to growth and profitability drove our strong financial performance as we generated a 33% increase in revenue and a 39% increase in OIBDA over the first quarter of last year" said Gokul Hemmady, NII's Vice President and Chief Financial Officer. "Continued improvement in the economic conditions in our markets and our strong focus on customer retention resulted in solid net subscriber growth, driving a 20% increase in our consolidated subscriber base compared to the end of the first quarter of 2009. We believe that the investments that we have made and will continue to make in our business will enhance our position as one of the premier wireless providers in Latin America."
The Company ended the quarter with approximately $3.52 billion in total long-term debt and $2.7 billion in consolidated cash and short term investments, resulting in net debt at the end of the quarter of $841 million.
In addition to the preliminary results prepared in accordance with accounting principles generally accepted in the United States (GAAP) provided throughout this press release, NII has presented consolidated OIBDA, ARPU, CPGA and Net Debt. These measures are non-GAAP financial measures and should be considered in addition to, but not as substitutes for, the information prepared in accordance with GAAP. Reconciliations from GAAP results to these non-GAAP financial measures are provided in the notes to the attached financial table. To view these and other reconciliations of non-GAAP financial measures that the Company uses and information about how to access the conference call discussing NII's first quarter 2010 results, visit the investor relations link at http://www.nii.com.
About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in Reston, Va., is a leading provider of mobile communications for business customers in Latin America. NII Holdings, Inc. has operations in Mexico, Brazil, Argentina, Peru and Chile offering a fully integrated wireless communications tool with digital cellular voice services, data services, wireless Internet access and Nextel Direct Connect[R] and International Direct Connect[TM], a digital two-way radio feature. NII Holdings, Inc., a Fortune 500 company, trades on the NASDAQ market under the symbol NIHD and is a member of the NASDAQ 100 Index. Visit the Company's website at http://www.nii.com.
Nextel, the Nextel logo, and Nextel Direct Connect are trademarks and/or service marks of Nextel Communications, Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. This news release includes "forward-looking statements" within the meaning of the securities laws. The statements in this news release regarding the business outlook, future performance and forward-looking guidance, as well as other statements that are not historical facts, are forward-looking statements. The words "estimate," "project," "forecast," "intend," "expect," "believe," "target," "providing guidance" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, network usage, customer growth and retention, pricing, operating costs, the timing of various events, the economic and regulatory environment and the foreign exchange rates that will prevail during 2010. Future performance cannot be assured and actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include the risks and uncertainties relating to the impact of more intense competitive conditions and changes in economic conditions in the markets we serve; the impact on our financial results, and potential reductions in the recorded value of our assets, that may result from fluctuations in foreign currency exchange rates and, in particular, fluctuations in the relative values of the currencies of the countries in which we operate compared to the U.S. dollar; the risk that our network technologies will not perform properly or support the services our customers want or need, including the risk that technology developments to support our services will not be timely delivered; the risk that customers in the markets we serve will not find our services attractive; and the additional risks and uncertainties that are described from in NII Holdings' Annual Report on Form 10-K for the fiscal year ended December 31, 2009, as well as in other reports filed from time to time by NII Holdings with the Securities and Exchange Commission. This press release speaks only as of its date, and NII Holdings disclaims any duty to update the information herein.
| NII HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (in millions, except per share amounts) | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Operating revenues Service and other revenues | $ 1,217.7 | $ 910.3 |
| Digital handset and accessory revenues | 65.4 | 51.0 |
| 1,283.1 | 961.3 | |
| Operating expenses Cost of service (exclusive of depreciation and amortization included below) | 349.5 | 255.9 |
| Cost of digital handset and accessory sales | 172.8 | 145.3 |
| Selling, general and administrative | 419.4 | 315.0 |
| Depreciation | 120.7 | 86.4 |
| Amortization | 8.0 | 6.5 |
| 1,070.4 | 809.1 | |
| Operating income | 212.7 | 152.2 |
| Other income (expense) Interest expense, net | (85.7) | (44.6) |
| Interest income | 5.6 | 12.6 |
| Foreign currency transaction losses, net | (25.1) | (7.3) |
| Other expense, net | (4.4) | (1.6) |
| (109.6) | (40.9) | |
| Income before income tax provision | 103.1 | 111.3 |
| Income tax provision | (54.6) | (40.7) |
| Net income | $ 48.5 | $ 70.6 |
| Net income per common share, basic | $ 0.29 | $ 0.43 |
| Net income per common share, diluted | $ 0.28 | $ 0.43 |
| Weighted average number of common shares outstanding, basic | 166.8 | 165.8 |
| Weighted average number of common shares outstanding, diluted | 170.5 | 166.0 |
| CONSOLIDATED BALANCE SHEET DATA (in millions) | ||
| March 31, | December 31, | |
| 2010 | 2009 | |
| (unaudited) | ||
| Cash and cash equivalents | $ 2,650.7 | $ 2,504.1 |
| Short-term investments | 30.5 | 116.3 |
| Accounts receivable, less allowance for doubtful accounts of $38.6 and $35.1 | 632.4 | 613.6 |
| Property, plant and equipment, net | 2,513.7 | 2,502.2 |
| Intangible assets, net | 341.6 | 337.2 |
| Total assets | 7,656.2 | 7,554.7 |
| Long-term debt, including current portion | 3,641.8 | 3,580.8 |
| Total liabilities | 4,807.6 | 4,807.9 |
| Stockholders' equity | 2,848.6 | 2,746.8 |
| NII HOLDINGS, INC. AND SUBSIDIARIES OPERATING RESULTS AND METRICS FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (Unaudited) | ||
| NII Holdings, Inc. | ||
| (subscribers in thousands) | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Total digital subscribers (as of March 31) | 7,763.3 | 6,465.9 |
| Net subscriber additions | 377.1 | 266.3 |
| Churn (%) | 1.69% | 2.11% |
| Average monthly revenue per handset/unit in service (ARPU) (1) | $ 47 | $ 42 |
| Cost per gross add (CPGA) (1) | $ 278 | $ 255 |
| Nextel Mexico | ||
| (dollars in millions, except ARPU and CPGA, and subscribers in thousands) | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Operating revenues Service and other revenues | $ 487.9 | $ 427.4 |
| Digital handset and accessory revenues | 21.5 | 17.6 |
| 509.4 | 445.0 | |
| Operating expenses Cost of service (exclusive of depreciation and amortization included below) | 86.4 | 83.6 |
| Cost of digital handset and accessory sales | 100.8 | 88.3 |
| Selling, general and administrative | 137.8 | 119.0 |
| Segment earnings | 184.4 | 154.1 |
| Management fee | 23.4 | 7.9 |
| Depreciation and amortization | 46.8 | 39.0 |
| Operating income | $ 114.2 | $ 107.2 |
| Total digital subscribers (as of March 31) | 3,091.6 | 2,816.0 |
| Net subscriber additions | 104.2 | 89.7 |
| Churn (%) | 1.92% | 2.52% |
| ARPU (1) | $ 47 | $ 47 |
| CPGA (1) | $ 378 | $ 306 |
| Nextel Brazil | ||
| (dollars in millions, except ARPU and CPGA, and subscribers in thousands) | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Operating revenues Service and other revenues | $ 538.0 | $ 297.3 |
| Digital handset and accessory revenues | 25.8 | 18.8 |
| 563.8 | 316.1 | |
| Operating expenses Cost of service (exclusive of depreciation and amortization included below) | 190.5 | 105.1 |
| Cost of digital handset and accessory sales | 37.9 | 29.3 |
| Selling, general and administrative | 158.7 | 93.7 |
| Segment earnings | 176.7 | 88.0 |
| Management fee | 8.3 | -- |
| Depreciation and amortization | 56.4 | 33.4 |
| Operating income | $ 112.0 | $ 54.6 |
| Total digital subscribers (as of March 31) | 2,663.3 | 1,938.9 |
| Net subscriber additions | 180.7 | 127.2 |
| Churn (%) | 1.28% | 1.37% |
| ARPU (1) | $ 60 | $ 45 |
| CPGA (1) | $ 231 | $ 225 |
| Nextel Argentina | ||
| (dollars in millions, except ARPU and CPGA, and subscribers in thousands) | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Operating revenues Service and other revenues | $ 121.9 | $ 124.2 |
| Digital handset and accessory revenues | 10.9 | 8.0 |
| 132.8 | 132.2 | |
| Operating expenses Cost of service (exclusive of depreciation and amortization included below | 44.3 | 44.8 |
| Cost of digital handset and accessory sales | 18.5 | 13.5 |
| Selling, general and administrative | 33.4 | 32.1 |
| Segment earnings | 36.6 | 41.8 |
| Management fee | 3.8 | -- |
| Depreciation and amortization | 9.7 | 9.8 |
| Operating income | $ 23.1 | $ 32.0 |
| Total digital subscribers (as of March 31) | 1,054.2 | 978.3 |
| Net subscriber additions | 24.1 | 11.3 |
| Churn (%) | 1.75% | 2.13% |
| ARPU (1) | $ 33 | $ 36 |
| CPGA (1) | $ 200 | $ 202 |
| Nextel Peru | ||
| (dollars in millions, except ARPU and CPGA, and subscribers in thousands) | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Operating revenues Service and other revenues | $ 65.6 | $ 58.9 |
| Digital handset and accessory revenues | 7.3 | 6.6 |
| 72.9 | 65.5 | |
| Operating expenses Cost of service (exclusive of depreciation and amortization included below) | 25.7 | 21.1 |
| Cost of digital handset and accessory sales | 14.9 | 13.4 |
| Selling, general and administrative | 28.1 | 21.6 |
| Segment earnings | 4.2 | 9.4 |
| Management fee | 4.1 | -- |
| Depreciation and amortization | 12.0 | 7.3 |
| Operating (loss) income | $ (11.9) | $ 2.1 |
| Total digital subscribers (as of March 31) | 905.5 | 703.9 |
| Net subscriber additions | 63.2 | 35.2 |
| Churn (%) | 2.06% | 2.43% |
| ARPU (1) | $ 23 | $ 26 |
| CPGA (1) | $ 163 | $ 163 |
(1) For information regarding ARPU and CPGA, see "Non-GAAP Reconciliations for the Three Months Ended March 31, 2010 and 2009" included in this release.
| NON-GAAP RECONCILIATIONS |
| FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009 |
| (UNAUDITED) |
Consolidated Operating Income Before Depreciation and Amortization
Consolidated operating income before depreciation and amortization, or OIBDA, represents operating income before depreciation and amortization expense. Consolidated OIBDA is not a measurement under accounting principles generally accepted in the United States, may not be similar to consolidated OIBDA measures of other companies and should be considered in addition to, but not as a substitute for, the information contained in our statements of operations. We believe that consolidated OIBDA provides useful information to investors because it is an indicator of operating performance, especially in a capital intensive industry such as ours, since it excludes items that are not directly attributable to ongoing business operations. Our consolidated OIBDA calculations are commonly used as some of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. Consolidated OIBDA can be reconciled to our consolidated statements of operations as follows (in millions):
| NII Holdings, Inc. | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Consolidated operating income | $ 212.7 | $ 152.2 |
| Consolidated depreciation | 120.7 | 86.4 |
| Consolidated amortization | 8.0 | 6.5 |
| Consolidated operating income before depreciation and amortization | $ 341.4 | $ 245.1 |
Average Monthly Revenue Per Handset/Unit in Service (ARPU)
Average monthly revenue per handset/unit in service, or ARPU, is an industry term that measures service revenues, which we refer to as subscriber revenues, per period from our customers divided by the weighted average number of handsets in commercial service during that period. ARPU is not a measurement under accounting principles generally accepted in the United States, may not be similar to ARPU measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations. We believe that ARPU provides useful information concerning the appeal of our rate plans and service offerings and our performance in attracting and retaining high value customers. Other revenue includes revenues for such services as roaming, handset maintenance, cancellation fees, analog and other. ARPU can be calculated and reconciled to our consolidated statement of operations as follows (in millions, except ARPU):
| NII Holdings, Inc. | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Consolidated service and other revenues | $ 1,217.7 | $ 910.3 |
| Less: consolidated analog revenues | (0.5) | (0.9) |
| Less: consolidated other revenues | (152.7) | (105.2) |
| Total consolidated subscriber revenues | $ 1,064.5 | $ 804.2 |
| ARPU calculated with subscriber revenues | $ 47 | $ 42 |
| ARPU calculated with service and other revenues | $ 54 | $ 48 |
| Nextel Mexico | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Service and other revenues | $ 487.9 | $ 427.4 |
| Less: analog revenues | (0.3) | (0.4) |
| Less: other revenues | (56.3) | (39.4) |
| Total subscriber revenues | $ 431.3 | $ 387.6 |
| ARPU calculated with subscriber revenues | $ 47 | $ 47 |
| ARPU calculated with service and other revenues | $ 54 | $ 51 |
| Nextel Brazil | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Service and other revenues | $ 538.0 | $ 297.3 |
| Less: analog revenues | (0.1) | (0.5) |
| Less: other revenues | (72.9) | (43.2) |
| Total subscriber revenues | $ 465.0 | $ 253.6 |
| ARPU calculated with subscriber revenues | $ 60 | $ 45 |
| ARPU calculated with service and other revenues | $ 70 | $ 53 |
| Nextel Argentina | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Service and other revenues | $ 121.9 | $ 124.2 |
| Less: other revenues | (17.8) | (18.0) |
| Total subscriber revenues | $ 104.1 | $ 106.2 |
| ARPU calculated with subscriber revenues | $ 33 | $ 36 |
| ARPU calculated with service and other revenues | $ 39 | $ 43 |
| Nextel Peru | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Service and other revenues | $ 65.6 | $ 58.9 |
| Less: other revenues | (5.0) | (4.4) |
| Total subscriber revenues | $ 60.6 | $ 54.5 |
| ARPU calculated with subscriber revenues | $ 23 | $ 26 |
| ARPU calculated with service and other revenues | $ 25 | $ 29 |
Cost per Gross Add (CPGA)
Cost per gross add, or CPGA, is an industry term that is calculated by dividing our selling, marketing and handset and accessory subsidy costs, excluding costs unrelated to initial customer acquisition, by our new subscribers during the period, or gross adds. CPGA is not a measurement under accounting principles generally accepted in the United States, may not be similar to CPGA measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations. We believe CPGA is a measure of the relative cost of customer acquisition. CPGA can be calculated and reconciled to our consolidated statements of operations as follows (in millions, except CPGA):
| NII Holdings, Inc. | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Consolidated digital handset and accessory revenues | $ 65.4 | $ 51.0 |
| Less: consolidated uninsured replacement revenues | (4.0) | (3.3) |
| Consolidated digital handset and accessory revenues, net | 61.4 | 47.7 |
| Less: consolidated cost of handset and accessory sales | 172.8 | 145.3 |
| Consolidated handset subsidy costs | 111.4 | 97.6 |
| Consolidated selling and marketing | 150.4 | 112.4 |
| Costs per statement of operations | 261.8 | 209.8 |
| Less: consolidated costs unrelated to initial customer | ||
| acquisition | (50.4) | (39.8) |
| Customer acquisition costs | $ 211.4 | $ 170.0 |
| Cost per Gross Add | $ 278 | $ 255 |
| Nextel Mexico | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Digital handset and accessory revenues | $ 21.5 | $ 17.6 |
| Less: uninsured replacement revenues | (2.0) | (2.1) |
| Digital handset and accessory revenues, net | 19.5 | 15.5 |
| Less: cost of handset and accessory sales | 100.8 | 88.3 |
| Handset subsidy costs | 81.3 | 72.8 |
| Selling and marketing | 66.0 | 53.7 |
| Costs per statement of operations | 147.3 | 126.5 |
| Less: costs unrelated to initial customer acquisition | (41.9) | (34.7) |
| Customer acquisition costs | $ 105.4 | $ 91.8 |
| Cost per Gross Add | $ 378 | $ 306 |
| Nextel Brazil | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Digital handset and accessory revenues | $ 25.8 | $ 18.8 |
| Less: uninsured replacement revenues | (2.1) | (1.2) |
| Digital handset and accessory revenues, net | 23.7 | 17.6 |
| Less: cost of handset and accessory sales | 37.9 | 29.3 |
| Handset subsidy costs | 14.2 | 11.7 |
| Selling and marketing | 55.4 | 37.7 |
| Costs per statement of operations | 69.6 | 49.4 |
| Less: costs unrelated to initial customer | ||
| acquisition | (5.2) | (3.5) |
| Customer acquisition costs | $ 64.4 | $ 45.9 |
| Cost per Gross Add | $ 231 | $ 225 |
| Nextel Argentina | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Digital handset and accessory revenues, net | $ 10.9 | $ 8.0 |
| Less: cost of handset and accessory sales | 18.5 | 13.5 |
| Handset subsidy costs | 7.6 | 5.5 |
| Selling and marketing | 10.7 | 10.1 |
| Costs per statement of operations | 18.3 | 15.6 |
| Less: costs unrelated to initial customer | ||
| acquisition | (2.5) | (0.8) |
| Customer acquisition costs | $ 15.8 | $ 14.8 |
| Cost per Gross Add | $ 200 | $ 202 |
| Nextel Peru | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Digital handset and accessory revenues, net | $ 7.3 | $ 6.6 |
| Less: cost of handset and accessory sales | 14.9 | 13.4 |
| Handset subsidy costs | 7.6 | 6.8 |
| Selling and marketing | 12.6 | 7.9 |
| Costs per statement of operations | 20.2 | 14.7 |
| Less: costs unrelated to initial customer | ||
| acquisition | (0.9) | (0.8) |
| Customer acquisition costs | $ 19.3 | $ 13.9 |
| Cost per Gross Add | $ 163 | $ 163 |
Net Debt
Net debt represents the total face amount of our long-term debt less cash, cash equivalents and short-term investments. Net debt to consolidated operating income before depreciation and amortization represents net debt divided by consolidated operating income before depreciation and amortization. Prior to 2008, we calculated net debt as total long-term debt less cash and cash equivalents. In 2008, we added short-term investments to the items subtracted from long-term debt to calculate net debt because we concluded that our short-term investments were similar to cash and cash equivalents in terms of liquidity and should be used similarly in providing the assessment of our overall leverage in the net debt calculation. Net debt is not a measurement under accounting principles generally accepted in the United States, may not be similar to net debt measures of other companies and should be considered in addition to, but not as a substitute for, the information contained in our balance sheets. We believe that net debt and net debt to consolidated operating income before depreciation and amortization provide useful information concerning our liquidity and leverage. Net debt as of March 31, 2010 can be calculated as follows (in millions):
| NII Holdings, Inc. | |
| Total long-term debt | $ 3,057.8 |
| Add: reduction to long-term debt pursuant to implementation of FSP APB 14-1 | 92.5 |
| Add: debt discounts | 22.2 |
| Add: principal amount of 2.75% convertible notes treated as current portion of long-term debt | 350.0 |
| Less: cash and cash equivalents | (2,650.7) |
| Less: short-term investments | (30.5) |
| Net debt | $ 841.3 |
| NII Holdings, Inc. |
| 1875 Explorer Street, Suite 1000 |
| Reston, VA. 20190 |
| (703) 390-5100 |
| http://www.nii.com |
| Investor Relations: Tim Perrott |
| (703) 390-5113 |
| tim.perrott@nii.com |
| Media Relations: Claudia E. Restrepo |
| (786) 251-7020 |
| claudia.restrepo@nii.com |
SOURCE NII Holdings, Inc.
