Income Statement ($000)

Year ended August 31,

1993 1994
Service, rental and maintenance revenues $39,610 $55,139
Product sales 5,698 12,108
Total revenues 45,308 67,247
Cost of products sold (4,031) (10,124)
Gross Profit 41,277 57,123

Operating expenses:
Service, rental and maintenance 9,532 13,123
Selling 7,307 10,243
General and administrative 13,123 17,717
Depreciation and amortization 13,764 16,997
Total operating expenses 43,726 58,080

Operating income (loss) (2,449) (957)

Interest expense (3,036) (4,221)

Interest income 175 109
Interest, net (2,861) (4,112)
Equity in loss of affiliate 0 0
Income (loss) before income tax benefit
and extraordinary items (5,310) (5,069)
Benefit from income taxes 0 0
Income (loss) before extraordinary item (5,310) (5,069)

Extraordinary charge from early extinguishment of debt (415) 0

Net income (loss) (5,725) (5,069)
Accretion of redeemable preferred stock 0 0
Net income (loss) to common stockholders ($5,725) ($5,069)

Income (loss) per common share before

extraordinary item ($0.75) ($0.71)
Extraordinary charge from early extinguishment
of debt (0.06) 0.00
Accretion of redeemable preferred stock 0.00 0.00
Net income (loss) per common share ($0.80) ($0.71)
Weighted average number of common shares
outstanding 7,125,164 7,153,044
December 31,
1995
$138,466
24,132
162,598
(20,789)
141,809

29,673
24,502
40,448
60,205
154,828

(13,019)

(22,560)
38
(22,522)
(3,977)

(39,518)
4,600
(34,918)

(1,684)
(36,602)
(102)
($36,704)

($2.59)

(0.12)
(0.01)
($2.72)

13,497,734
Balance Sheet ($000)
Year ended December 31 1994 1995
Assets
Current assets:
Cash $2,351 $3,643
Accounts receivable (less reserves of $707 and
$2125 in 1994 and 1995, respectively) 4,632 14,278
Inventories 0 11,801
Due from employees 47 41
Prepaid expenses and other 1,453 3,908
Total current assets 8,483 33,671

Property and equipment, at cost:

Land, buildings, and improvements 3,333 6,813
Paging and computer equipment 73,992 191,461
Furniture, fixtures, and vehicles 2,935 7,362
80,260 205,636
Less accumulated depreciation and amortization 23,130 36,390
Property and equipment, net 57,130 169,246
Intangible and other assets (less accumulated amortization of
$14,255 and $44,915 in 1994 and 1995, respectively). 52,245 582,459
Total Assets $117,858 $785,376

Liabilities and Stockholders’ Equity

Current liabilities:
Current maturities of long-term debt $86 $166
Accounts payable 8,567 22,463
Accrued expenses 3,044 8,947
Accrued interest 391 7,845
Customer deposits 1,182 5,258
Deferred revenue 1,800 4,493
Total current liabilities 15,070 49,172

Long-term debt, less current maturities 93,420 457,044

Deferred income taxes 0 28,900
Commitments (Note 6)
Redeemable preferred stock 0 3,376
Total Liabilities 108,490 538,492

Stockholders’ equity:
Preferred stock—$.01 par value, authorized 10,000,000 shares, no shar 0 0

Common stock—$.01 par value, authorized 75,000,000 shares, issued and

outstanding: 8,058,665 and 19,653,031 shares in 1994 and 1995 respec 81 197
Additional paid-in capital 60,823 334,825
Accumulated deficit (51,536) (88,138)
Total stockholders’ equity 9,368 246,884
Total liabilities and stockholders' equity $117,858 $785,376