USA Mobility / USMO

About USA Mobility

6677 Richmond Hwy., Alexandria, Va. 22306
www.usamobility.com | 866-662-3049 | Founded: 1986

Industry: Telecommunications | Category: Public Companies

In the past year the company focused on integrating the two operations while trying to keep its paging customer base from eroding rapidly.
The forces that brought the two companies together drove massive consolidation in the paging industry — the subscriber base for basic messaging service is on the decline, as cellular and other more sophisticated wireless services replaces it.
Paging still continues to serve a function for some industries because it is cheap and reliable. Sending and receiving messages requires little network capacity, allowing it sometimes to outperform cellular phones in emergency situations such as natural disasters. For that reason, the company hopes to continue to provide paging services to customers in health care and to emergency response groups and homeland security agencies.
Meanwhile, however, the company is trying to slow the erosion of revenue from the business. Although it is generating earnings, its revenue drops every quarter as it loses more of its old paging subscribers.
So USA Mobility's future isn't as much in the paging business as it is in the resale and distribution of other wireless goods, such as cellular phones and wireless data devices for its business customers. The company also began exploring other potential sources of revenue, including an alliance with Advanced Metering Data Systems, in which USA Mobility would share revenue derived from the wireless reading of utility meters.
On March 31 of this year, the company announced it had sought an extension in filing annual financial data with the Securities and Exchange Commission because of "unforeseen time requirements in connection with completing its restatements of income taxes and deferred tax assets" as far back as 2003.
But the company issued a statement April 3 indicating that its preliminary results showed revenue of $618.6 million for 2005.On April 5, the company announced it had been warned by the Nasdaq National Market that it faced delisting for failure to file its financial reports. The company said it would appeal, which delayed the suspension.

President and CEO: Vincent D. Kelly

2005 Financial Data