WilTech
High-Tech Solutions
WilTech's acquisition of four ICG satellite teleports is scheduled to close in first-quarter 1996. Shown is the Denver teleport, with the Rockies in the background. The yellow "speck" seen at midlevel on one of the dishes is a person, shown to provide perspective regarding the size of these facilities.
The WilTech Group comprises high-technology companies pioneering innovative telecom munication solutions. Its primary business,Vyvx, provides video and multimedia transmission services via its national fiber-optic network and satellite uplink facilities.
Satelite Teleports and Owned-and-Leased Fiber-Optic Networks
At The WilTech Group, technology is our middle name. We use it every day to pioneer solutions in telecommunications from coast to coast. Our fiber-optic network and recently acquired satellite teleports offer unrivaled connectivity. From multiway videoconferencing to multimedia training programs, our products and services are rapidly opening gateways to the Information Age. Have a telecommunications problem? WilTech creates solutions.
| Selected Financial Data (dollars in millions) | 1995 | 1994 | 1993 |
| Revenues | $44.00 | $20.00 | $13.50 |
| Operating loss | -3.3 | -11.3 | -17 |
| Identifiable assets* | 138 | 60.2 | 26.6 |
| Capital expenditures | 8.3 | 8 | 6.9 |
| Depreciation | 8.3 | 7.4 | 4 |
| Operating Statistics | |||
| Occasional service: | |||
| Billable minutes (thousands) | 3,969 | 1,889 | 1,225 |
| Dedicated service: | |||
| Voice grade equivalent miles at December 31 | |||
| (millions) | 25.5 | 17 | 4.5 |
| Employees (December 31) | 158 | 82 | 60 |
| *Defined in Note 16 of the Notes to Consolidated Financial Statements, page 53. | |||
Key Points
- Helped greatly by Vyvx - whose revenues doubled in 1995 - we achieved our goal of reaching fourth-quarter 1995 profitability.
- The acquisition of ICG Wireless Services' four satellite teleports positions Vyvx as the first full-service provider of satellite and fiber-optic services. The Vyvx network has become a virtual teleport.
- The purchase of NUS Training Corporation adds skills programs and 8,500 customers to Williams Learning Network, our training-on-demand bus iness. We now are the premier supplier of video-based and digital multimedia training materials to several industries.
- Vyvx signed agreements with Sun Microsystems, Sybase, StrataCom and IBM to jointly develop a prototype for a national video-archiver system. Utilizing Vyvx's fiber network, teleports and planned ATM (asynchronous transfer mode) transport, the system will provide national distribution and storage of video and multimedia content. Scheduled for initial deployment in third-quarter 1996, the archiver will allow Vyvx to provide broadband video-on-demand services. Vyvx's network of the future should open new business opportunities with television broadcasting companies, cable system operators, ad agencies and others. Williams Learning Network and Vyvx, using the planned archiver services, are developing network-based training capabilities.
- Purchase of a 22 percent interest in ITC, A Worldwide Telecommun ications Company, positions us for growth in 1996 in the multibillion-dollar videoconferencing, teleconferencing and enhanced fax services markets.
- In 1996, Vyvx signed a five-year, multimillion-dollar agreement that allows Time Warner to interconnect its broadcasting and cable companies' video services on our network.
- Planned capital investments for 1996 include expanding capabilities and capacity on the Vyvx network. Investments also are planned for the development of archiver services and training programs. Multiple acquisitions are anticipated within The WilTech Group.
- Our vision is to become a significant contributor to Williams' operating profit. We expect substantial progress in 1996. We are on a fast and exciting course that propels us toward fulfilling this vision.
