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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 11, 1999
At Home Corporation
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(Exact name of Registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
000-22697 77-0408542
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(Commission (IRS Employer
File Number) Identification No.)
425 Broadway, Redwood City, California 94063
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(Address of principal executive offices) (Zip code)
(650) 569-5000
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On January 11, 1999, At Home Corporation (the "Company") issued a
press release announcing an accounting adjustment that will require the Company
to make certain adjustments to its financial statements for the year ended
December 31, 1997 and for the first three quarters of fiscal 1998. A copy of
the press release is filed as Exhibit 99.1 and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
Exhibit Number Exhibit
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99.1 Press Release, dated January 11, 1999, of At
Home Corporation
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AT HOME CORPORATION
/s/ Kenneth A. Goldman
Date: January 21, 1999 By:_______________________________
Kenneth A. Goldman,
Senior Vice President and
Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit Number Exhibit
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99.1 Press Release, dated January 11, 1999, of At
Home Corporation
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EXHIBIT 99.1
@Home Network Surpasses 330,000 Subscribers
@Home Network Announces Accounting Adjustment
REDWOOD CITY, Calif., Jan. 11 -- @Home Network (Nasdaq: ATHM - news),
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the leader in high-speed Internet services via the cable infrastructure, today
announced that its @Home service has experienced nearly a seven fold growth in
cable modem subscribers since the beginning of 1998. Additionally, the Company
announced that it will record as a long-term asset certain amounts that were
previously expensed in connection with its distribution agreement with
Cablevision System Corporation.
Subscriber Growth
At December 31, 1998, @Home served more than 330,000 cable modem subscribers
across North America, an increase of 57 percent from 210,000 cable modem
subscribers reported at September 30, 1998. These numbers include Internet
service subscribers served by @Home affiliates that are currently being
converted to the @Home service.
"The increase in our subscriber growth reflects the pent-up demand for
broadband Internet services in the wider residential market," said Tom
Jermoluk, chairman and CEO of @Home Network. "Many of our partners are
rapidly upgrading their cable plants and installing more than 1,000 new
subscribers every week. Coupling the cable industry's enthusiasm for broadband
with our new Internet backbone and multiple service offerings, @Home is the
leader in broadband Internet services."
During the quarter, @Home expanded distribution, enhanced market awareness,
and drove penetration. @Home announced that Compaq Computer Corporation
[NYSE:CPQ - news] and Dell Computer Corporation [Nasdaq:DELL - news] will
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integrate @Home's broadband Internet service experience with cable-ready
Compaq Presario Internet PCs and Dell Dimension desktop PCs. Additionally,
@Home's retail merchandising program featuring the "@Home Cable Internet Pre-
Installation Kit," was among CompUSA's best selling products by volume this
holiday season where the @Home and cable operator merchandising system was
available. These initial retail merchandising locations produced several
thousand subscribers during the quarter.
As the leading broadband Internet portal, page views of @Home content
increased nearly 100 percent during the quarter. @Home provides consumers with
a gateway to compelling multimedia and electronic commerce offerings on the
Internet. @Home subscribers experience lavish
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multimedia features that would drag phone connections down to a finger-
drumming crawl.
Accounting Adjustment
Following discussions with the Securities and Exchange Commission, @Home
Network also announced today it will record a long-term asset and amortize
ratably over 57 months amounts which were previously expensed in connection
with the agreement by Cablevision Systems Corporation [AMEX:CVC - news] in
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October 1997 to distribute the Company's @Home service. The Company had
recorded non-cash charges to operations of $172.6 million and $74.5 million in
the fourth quarter of 1997 and the first quarter of 1998, respectively,
related to the agreement. The Company will reverse these previously expensed
amounts and record the entire $247.1 million as an asset, which will be
amortized ratably over the 57-month term of the agreement. This intangible
asset will be carried in the Company's financial statements at the lower of
its amortized cost or fair value.
The Company's decision to record and amortize an asset for the Cablevision
distribution agreement will require that the Company make certain adjustments
to its financial statements for the year ended December 31, 1997 and for the
first three quarters of fiscal 1998. These adjustments will result in an
increase to assets and stockholders' equity at the end of each of these
periods. The reversal of the previously recorded charges to operations, less
the amortization of the intangible asset, will result in a decrease to the
Company's previously reported net losses for the fourth quarter of 1997 and
the first quarter of 1998 and an increase in the previously reported net
losses for the second and third quarters of 1998. The impact of this
restatement will be included in the Company's annual earnings press release
which is currently planned for January 20, 1999.
@Home Network
Based in Redwood City, California, @Home Network distributes high-speed
interactive services to residences and businesses using its own network
architecture and a variety of transport options including the cable industry's
hybrid-fiber coaxial infrastructure. The cable connection provides users
significant increases in speed over conventional Internet services. Leveraging
the "always on" attributes of cable, @Home allows for unique multimedia
applications that go beyond current Web experiences. Individuals seeking
additional information about availability and subscription can refer to the
@Home Network Web site (www.home.net). Since its founding in 1995, @Home
Network has reached affiliate agreements with eighteen leading cable companies-
worldwide, including Bresnan Communications Company, Cablevision Systems
Corp., CasTel, Century Communications, Cogeco Cable Inc., Comcast Corporation,
Cox Communications, Garden State Cable, Insight Communications, InterMedia
Partners, Jones Intercable, Lenfest Communications, Marcus Cable, Midcontinent
Cable Co., Palet Kabelcom, Rogers Cablesystems Limited, Shaw Communications,
and Tele-Communications Inc.
NOTE: The @ logo, @Home, and @Home Network are trademarks of At Home
Corporation and may be registered in certain jurisdictions. All other brands
and product names are trademarks of their respective owners.
This press release contains forward-looking information within the meaning of
Section 27A of the Securities Exchange Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, and is subject to the safe harbors created by
those sections. These forward-looking statements include statements related
to: demand for the @Home service and subscriber penetration; the pace of cable
plant upgrades; and the potential contribution of @Home's retail and OEM
initiatives. Actual results may differ materially due to a number of factors,
including: @Home's cable partners willingness to continued to make the
investments required to upgrade the cable plant and their commitment to
actively market the @Home service to their customers; and numerous
technological, operational and financial challenges associated with @Home's
retail and OEM programs. Actual financial results for the fourth quarter and
full year of 1997, the first three quarters of 1998 and subsequent fiscal
periods
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during the term of the Cablevision agreement will differ or change
materially as a result of the Company's recording this asset, as described
above. The matters discussed in this press release also involve risks and
uncertainties described from time to time in @Home Network's filings with the
Securities and Exchange Commission. In particular, see the risk factors
described in @Home Network's Form S-3 Registration Statement filed on August
12, 1998 and in its Form 10-Q for the quarter ended September 30, 1998. @Home
Network assumes no obligation to update the forward-looking information
contained in this press release.
