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Firstcom Corp – ‘10-Q’ for 6/30/00

On: Monday, 8/14/00, at 8:16pm ET · For: 6/30/00 · Accession #: 950170-0-1356 · File #: 1-14017 · Correction: This Filing’s “Filed as of” Date was Corrected and “Changed as of” 9/6/00 by the SEC on 9/7/00. `®`

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 8/14/00  Firstcom Corp                     10-Q®       6/30/00    2:61K                                    Donnelley Fin’l/Miami/FA

Quarterly Report — Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                      20    115K 
 2: EX-27       Financial Data Schedule (Pre-XBRL)                     1      6K

10-Q — Quarterly Report
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Condensed Consolidated Financial Statements (unaudited) Exhibits and Reports on Form 8-K
1	1st Page - Filing Submission
2	Item 1. Condensed Consolidated Financial Statements (unaudited)
19	Item 6. Exhibits and Reports on Form 8-K

10-Q 1st Page of 20 TOC ↑Top Previous Next ↓Bottom Just 1st
 
FORM 10Q

SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D. C. 20549

QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934

(Mark One)                                                                

[x]    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE          
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY   
PERIOD ENDED June 30, 2000                          

OR

[ ]    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE         
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION  
 PERIOD FROM __________________  TO __________________

Commission file number 0-25194

FIRSTCOM CORPORATION  
(Exact name of registrant as specified in charter)

    TEXAS                         87-0464860
     (State of Incorporation)      (IRS Employee Identification)

220 ALHAMBRA CIRCLE, SUITE 910                          
CORAL GABLES, FLORIDA                   33134     
(Address of principal executive offices)       (Zip Code)           

Registrant's telephone number:
(305) 459-6300

 (Former name, former address and fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) filed all reports required by 
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12   
months (or for such shorter period than that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.                                                                        

Yes [x]     No [ ]          

State the number of shares outstanding of each of the issuer's classes of common
equity, as of August 4, 2000 - 31,769,225                                       

NOTE: Page 1 of   sequentially numbered pages.

 1

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FIRSTCOM CORPORATION
 INDEX

PART I  FINANCIAL INFORMATION                                                   

Item 1.  Condensed Consolidated Financial Statements                        
(unaudited)                                               

Condensed Consolidated Balance Sheets - as of             
         June 30, 2000 and December 31, 1999(unaudited)                    3

Condensed Consolidated Statements of Operations -         
Six Months and Three Months Ended June 30, 2000 and 1999  
         (unaudited)                                                       4

Condensed Consolidated Statement of Stockholders'         
Deficit- Six Months Ended June 30, 2000                   
         (unaudited)                                                       5

Condensed Consolidated Statements of Cash Flows -         
Six Months Ended June 30, 2000 and 1999                   
         (unaudited)                                                       6

Notes to Condensed Consolidated Financial Statements      
         (unaudited)                                                       7

Item 2.  Management's Discussion and Analysis of Financial                  
         Condition and Results Of Operations                               8

PART II  OTHER INFORMATION                                                      

Signatures                                                                19

Exhibit Index                                                             20

10-Q 3rd Page of 20 TOC 1st Previous Next ↓Bottom Just 3rd
PART I FINANCIAL INFORMATION                                                    

FIRSTCOM CORPORATION
 CONDENSED CONSOLIDATED BALANCE SHEETS
(THOUSANDS OF US DOLLARS, EXCEPT SHARE DATA)
 (Unaudited)

                                                        [Enlarge/Download Table]

                                                                           6/30/00     12/31/99 
                                                                         -----------  --------- 
                                                                                                
ASSETS                                                                                          
Current assets:                                                                                 
Cash and cash equivalents ..............................................  $  16,778   $  12,986 
Restricted cash ........................................................         97         645 
Restricted investments .................................................     10,410      20,440 
Accounts receivable, net ...............................................     14,223      11,041 
Prepaid expenses and other current assets ..............................      5,928       2,775 
                                                                          ---------   --------- 
Total current assets ...................................................     47,436      47,887 
Property, plant, and equipment, net ....................................    108,125      92,469 
Intangible assets, net .................................................     16,799      17,704 
Deferred financing costs and other assets ..............................     13,661      14,050 
                                                                          ---------   --------- 
Total assets ...........................................................  $ 186,021   $ 172,110 
                                                                          =========   ========= 
LIABILITIES AND STOCKHOLDERS' DEFICIT                                                           
Current liabilities:                                                                            
Short-term bank debt ...................................................  $  10,663   $      55 
Vendor financing, current ..............................................      1,358         814 
Current maturities of long-term debt ...................................        638          50 
Lease obligations, current .............................................         30          70 
Accounts payable .......................................................     12,694      12,653 
Accrued interest .......................................................      3,688       3,716 
Other accrued expenses .................................................      2,213       5,334 
Deferred income taxes ..................................................        302         302 
Other current liabilities ..............................................      2,452       1,220 
                                                                          ---------   --------- 
Total current liabilities ..............................................     34,038      24,214 

Senior notes, net ......................................................    133,692     133,197 
Long-term bank debt ....................................................        -         2,008 
Vendor financing .......................................................      5,760       4,050 
Lease obligations, less current portion ................................        133         142 
Deferred income taxes ..................................................      2,134       2,228 
Other Liabilities ......................................................      5,019         239 
                                                                          ---------   --------- 
Total liabilities ......................................................    180,776     166,078 

Minority interest ......................................................      2,925       3,012 
Redeemable Preferred Stock, $.001 par value, authorized                                         
10,000,000 shares, issued and outstanding 1,448,885 and 1,345,507 shares                        
as of June 30, 2000 and December 31, 1999,respectively ..................    12,527      11,720 

STOCKHOLDERS' DEFICIT                                                                           
Common stock, $.001 par value, authorized                                                       
50,000,000 shares, issued and outstanding                                                       
31,762,195 and 26,858,526 shares as of June 30, 2000 and December 31,                           
1999, respectively .....................................................         32          27 
Additional paid in capital .............................................     91,557      68,476 
Warrants ...............................................................     26,737      26,737 
Accumulated deficit ....................................................   (128,296)    (95,057)
Cumulative translation adjustments .....................................       (237)       (238)
                                                                          ---------   --------- 
                                                                            (10,207)        (55)
Shareholder loans ......................................................          -      (8,645)
                                                                          ---------   --------- 
Total stockholders' deficit ............................................    (10,207)     (8,700)
                                                                          ---------   --------- 
Total liabilities and stockholders' deficit ............................  $ 186,021   $ 172,110 
                                                                          =========   ========= 

The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           

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FIRSTCOM CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(THOUSANDS OF US DOLLARS, EXCEPT SHARE DATA)
 (UNAUDITED)

                                                        [Enlarge/Download Table]

                                                SIX MONTHS ENDED JUNE 30,      THREE MONTHS ENDED JUNE 30 
                                             -------------------------------   -------------------------- 
                                                 2000               1999           2000           1999    
                                             -------------      ------------   -----------     ---------- 
                                                                                                          
Revenues:                                                                                                 
  Long Distance ............................ $      14,610      $     12,166   $     7,960     $    6,141 
  Internet and data ...............                 11,485             5,920         6,386          3,664 
                                             -------------      ------------   -----------     ---------- 
                                                    26,095            18,086        14,346          9,805 
Operating expenses:                                                                                       
Cost of revenues: ..........................        11,941            11,785         6,632          5,757 
Selling, general and administrative ........        21,445            10,385        11,390          6,040 
Non-cash compensation and                                                                                 
 Consulting expenses .......................           115               152            58             70 
Depreciation and amortization ..............         6,261             2,703         3,325          1,811 
Merger expense .............................         6,443                 -           306              - 
                                             -------------      ------------   -----------     ---------- 
                                                    46,205            25,025       21,711          13,678 
Loss from operations .......................       (20,110)           (6,939)      (7,365)         (3,873)
Interest expense ...........................       (11,731)          (10,720)      (5,877)         (6,216)
Interest income ............................           502             1,367          110             566 
Other income/(expense), net ................        (1,081)             (435)      (1,351)            (57)
                                             -------------      ------------   -----------     ---------- 
Net loss before income taxes and minority                                                                 
 interest expense                            $     (32,420)     $    (16,727)  $  (14,483)     $   (9,580)
Income taxes ...............................          (143)             (252)        (126)           (252)
                                             -------------      ------------   -----------     ---------- 
Net loss before minority interest            $     (32,563)     $    (16,979)  $  (14,609)     $   (9,832)
Minority Interest                                      133               (62)         133             (62)
                                             -------------      ------------   -----------     ---------- 
Net Loss ................................... $     (32,430)     $    (17,041)  $  (14,476)     $   (9,894)
                                             =============      ============   ==========      ========== 
Net basic and diluted loss per share ....... $       (1.06)     $      (0.88)  $    (0.46)     $    (0.50)
                                             =============      ============   ==========      ========== 
Weighted average common shares outstanding..    30,612,248        19,461,011   31,563,569      19,806,468 
                                             =============      ============   ==========      ========== 

The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           

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FIRSTCOM CORPORATION
 CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
(THOUSANDS OF US DOLLARS, EXCEPT SHARE DATA)

                                                        [Enlarge/Download Table]

                                      COMMON STOCK     ADDITIONAL                         CUMMULATIVE                        
                                   ------------------   PAID IN              ACCUMULATED  TRANSLATION  SHAREHOLDER           
                                     SHARES    AMOUNT   CAPITAL    WARRANTS    DEFICIT    ADJUSTMENT      LOANS      TOTAL   
                                   ----------  ------  ----------  --------  -----------  -----------  -----------  -------- 
                                                                                                                             
Balances at December 31, 1999..... 26,858,526    $27     $68,476    $26,737   $ (95,057)     $(238)      $(8,645)   $ (8,700)

  Exercise of stock options.......  4,903,669      5      17,926         --                                           17,931 

  Repayment of Shareholder Loan...                                                                         8,674       8,674 

  Vesting of Stock Options........                         5,155                                                       5,155 

  Interest on Shareholder Loan....                            --                                             (29)        (29)

  Preferred Stock PIK Dividend....                                                 (809)                                (809)

  Translation Adjustment                                                                         1                         1 

  Net Loss........................                                              (32,430)                             (32,430)
                                   ----------  ------  ----------  --------  -----------  -----------  -----------  -------- 
Balances at June 30, 2000........  31,762,195    $32     $91,557    $26,737   $(128,296)     $(237)      $    (0)   $(10,207)
                                   ==========  ======  ==========  ========  ===========  ===========  ===========  ======== 

The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           

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FIRSTCOM CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (THOUSANDS OF US DOLLARS)
 (UNAUDITED)

                                                                [Download Table]

                                                         SIX MONTHS ENDED JUNE 30,  
                                                         ---------------------------
                                                             2000           1999    
                                                         -----------     -----------
                                                                                    
CASH FLOWS FROM OPERATING ACTIVITIES:                                               
Net loss ...............................................   $(32,430)       $(17,041)
 Adjustments to reconcile net loss to net cash used                                 
 in operating activities:                                                           
 Depreciation and amortization expense .................      6,261           2,703 
 Amortization of deferred financing costs and                                       
 original issue discounts ..............................        886             934 
 Accretion of discount on restricted investments               (723)           (995)
 Capitalized interest related to network                                            
 construction ..........................................       (260)         (1,532)
 Deferred financing cost ...............................        697              -- 
 Bad Debt Expense.......................................        711                 
 Minority Interest expense .............................                         62 
 Non-cash compensation and consulting expense ..........      5,212              -- 
 Changes in operating assets and liabilities:                                       
  Accounts receivable ..................................     (3,185)         (2,551)
  Prepaid expenses and other current assets ............     (3,151)           (990)
  Intangible Assets.....................................        904              -- 
  Other assets .........................................         (6)           (142)
  Accounts payable and accrued expenses ................     (3,104)          3,666 
  Other liabilities ....................................      5,925           1,366 
                                                           --------        -------- 
Net cash used in operating activities ..................    (22,263)        (14,520)
                                                           --------        -------- 
CASH FLOWS FROM INVESTING ACTIVITIES:                                               
 Purchase of telecommunications network ................    (28,578)        (18,390)
 Increase(decrease)in restricted cash ..................       (548)         21,433 
 Acquisition of Teleductgos, net .......................         --          (4,936)
                                                           --------        -------- 
Net cash used in investing activities ..................    (29,126)         (1,893)
                                                           --------        -------- 
CASH FLOWS FROM FINANCING ACTIVITIES:                                               
 Use of Restricted Investment...........................     10,031          10,500 
 Repayment of Shareholder Loans ........................      8,645              -- 
 Net proceeds from vendor financing ....................      2,449             557 
 Exercise of stock options .............................     23,087           4,501 
 Payments under leasing obligations ....................        (40)            (83)
 Convertible preferred stock issue-net                          807           9,600 
 Net change in bank debt and promissory notes ..........     10,202          (3,569)
                                                           --------        -------- 
Net cash provided by financing activities ..............     55,181          21,506 
                                                           --------        -------- 
Net increase in cash and cash                                                       
equivalents ............................................      3,792           5,093 
                                                           --------        -------- 
Cash and cash equivalents at beginning of year .........     12,986           8,892 
                                                           --------        -------- 
Cash and cash equivalents at end of period .............   $ 16,778        $ 13,985 
                                                           ========        ======== 

The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                  
(EXPRESSED IN THOUSANDS OF DOLLARS)                                             

BASIS OF PRESENTATION                                                           

    The unaudited condensed consolidated financial statements included
herein have been prepared by FirstCom Corporation (the "Company"). The foregoing
statements contain all adjustments, consisting only of normal recurring         
adjustments which are, in the opinion of the Company's management, necessary to 
present fairly the consolidated financial position of the Company as of June 30,
2000, the consolidated results of its operations for the three and six month    
periods ended June 30, 2000 and 1999, and its consolidated cash flows for the   
six month periods ended June 30, 2000 and 1999.                                 

  Certain information and footnote disclosure normally included in
financial statements, prepared in accordance with generally accepted accounting 
principles, have been condensed or omitted pursuant to the instructions, rules  
and regulations prescribed by the Securities and Exchange Commission ("the      
Commission"). Although the Company believes the disclosures provided are        
adequate to make the information presented not misleading, it strongly          
recommends that these unaudited condensed consolidated financial statements be  
read in conjunction with the audited consolidated financial statements and the  
footnotes thereto included in the Company's Annual Report on Form 10-K for the  
fiscal year ended December 31, 1999.                                            

NOTE 1 - TELECOMMUNICATIONS NETWORKS                                            

         Telecommunications networks are recorded at cost and are depreciated on
a straight-line method over the estimated useful lives of the related assets.   
Construction, engineering, interest , labor costs and import and value added    
taxes directly related to the development of the Company's networks are         
capitalized. The Company begins depreciating these costs when the networks      
become commercially operational.                                                

Telecommunications networks consists of:                      

                                          June 30,    December 31,
                                        2000          1999
                                          ---------   ------------
Telecommunications equipment ................    $114,012     $ 94,356          
Telecommunications equipment pending                                            
installation and construction in progress....          --        1,260          
Office equipment, furniture and vehicles ....      11,732        8,363          
                                       --------     --------
                                        125,744      103,979
Less: accumulated depreciation ..............     (17,619)     (11,510)         
                                       --------     --------
                                       $108,125     $ 92,469
                                       ========     ========

NOTE 2 - BANK DEBT                                                              

        During February 2000, certain subsidiaries of the Company entered into
a term credit facility (the "Term Facility") with a bank. The significant       
provisions of the Term Facility are as follows: (i) maximum amount available    
$10,000, (ii) annual interest rate of Libor plus 6% or Prime plus 5%, (iii)     
principal maturity date of January 2, 2001, (iii) interest payments on the      
outstanding principal balance are due quarterly beginning June 30, 2000, (iv)   
the Term Facility is collateralized by certain telecommunications equipment and 
(v) mandatory prepayment provisions exist upon the occurrence of certain events 
including a change of control, as defined in the Indenture. As of June 30,      
2000, the Company had $10,000 outstanding under the Term Facility.              

NOTE 3 - MERGER EXPENSE                                                         

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  During the six months ended June 30, 2000 the Company recognized
approximately $5,200 of non-cash expense related to the accelerated vesting of  
un-vested stock options for certain former employees. Such expense is classified
in Merger Expense in the accompanying condensed statement of operations.        

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
       OF OPERATIONS (THOUSANDS OF DOLLARS, EXCEPT SHARE, PER SHARE AND UNIT
AMOUNTS)                                                      

THE INFORMATION CONTAINED IN THIS DOCUMENT CONTAINS "FORWARD-LOOKING STATEMENTS"
THAT REFLECT THE COMPANY'S CURRENT EXPECTATIONS, HOPES, INTENTIONS, PLANS AND   
STRATEGIES. THE WORDS OR PHRASES "IS EXPECTED," "WILL CONTINUE, "ANTICIPATES,"  
"ESTIMATES," "EXPECTS," "PLANS," "INTENDS," OR SIMILAR EXPRESSIONS IN THIS      
DOCUMENT ARE INTENDED TO IDENTIFY "FORWARD-LOOKING STATEMENTS" WITHIN THE       
MEANING OF SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 27A OF
THE SECURITIES ACT OF 1933, AS ENACTED BY THE PRIVATE SECURITIES LITIGATION     
REFORM ACT OF 1995. THERE CAN BE NO ASURANCE THAT SUCH FORWARD-LOOKING          
STATEMENTS WILL PROVE TO HAVE BEEN CORRECT. IMPORTANT FACTORS THAT COULD CAUSE  
ACTUAL RESULTS OF THE COMPANY TO DIFFER MATERIALLY FROM THE EXPECTATIONS THAT   
MAY BE IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED  
TO, THE ECONOMIC ENVIRONMENT OF THE LATIN AMERICAN COUNTRIES IN WHICH THE       
COMPANY OPERATES, CHANGES IN GOVERNMENTAL REGULATION, THE COMPANY'S LIQUIDITY   
AND CAPITAL RESOURCES, COMPETITION, ACTUAL DEMAND FOR THE COMPANY'S SERVICES AND
THE OTHER FACTORS IDENTIFIED IN THIS DOCUMENT. THE COMPANY DOES NOT UNDERTAKE TO
UPDATE ANY SUCH FORWARD-LOOKING STATEMENTS. ALL STATEMENTS IN THIS DOCUMENT ARE 
FORWARD-LOOKING STATEMENTS, EXCEPT FOR HISTORICAL INFORMATION CONTAINED IN THIS 
DOCUMENT.                                                                       

     The following discussion and analysis should be read in conjunction
with the Company's unaudited consolidated financial statements and the notes    
thereto appearing elsewhere in this document.                                   

OVERVIEW                                                                        

   FirstCom's objective is to become a leading provider of broadband
communications services to business customers in key Latin American             
business centers.                                                               

   FirstCom Corporation ("FirstCom" or "Company") provides broadband
communications services primarily to business customers in four major           
metropolitan business centers: Santiago, Chile; Lima/Callao, Peru; and Bogota   
and Cali, Colombia. FirstCom primarily targets business customers,              
communications carriers and high volume users by offering a wide range of       
broadband communications services, including data, voice,video, audio and       
Internet access. Specific service offerings vary depending on the concessions   
FirstCom holds in each particular country, as well as local laws and regulations
and the infrastructure in each country.                                         

       FirstCom currently operates its own fiber optic networks in Santiago,
Chile, Lima/Callao, Peru, and Bogota and Cali, Colombia.                        

     On November 1, 1999, FirstCom entered into an Agreement and plan of
Merger with AT&T Corp., AT&T Latin America Corp., an indirect wholly-owned      
subsidiary of AT&T ("AT&T Latin America"), and Frantis, Inc., a Delaware        
corporation ("Frantis"). The Merger Agreement provides for the merger (the      
"Merger") of FirstCom with and into Frantis, which is a direct wholly owned     
subsidiary of AT&T Latin America Corp. The Merger is subject to approval of     
FirstCom's shareholders, among other conditions. FirstCom and AT&T Latin America
expect to complete the merger as soon as possible after the FirstCom            
shareholders' special meeting, which is scheduled for August 28, 2000, if       
FirstCom's shareholders approve the merger. For more information on the Merger, 
see the Company's Definitive Proxy Statement dated July 27, 2000.               

A summary of key operating metrics follows:                                     

A SUMMARY OF KEY METRICS AS OF JUNE 30, 2000 FOLLOWS (UNAUDITED):               

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                                                        [Enlarge/Download Table]

                                               CHILE   PERU   COLOMBIA  CORPORATE  TOTAL 
                                               -----   ----   --------  ---------  ----- 
                                                                                         
NETWORK INSTALLATION                                                                     
        Route Kilometers - metropolitan area    343    1,346       977              2,666
        Route Kilometers - domestic               -        -         -                  -

        Fiber Kilometers - metropolitan area  5,761   33,165    19,551             58,477
        Fiber Kilometers - domestic               -        -         -                  -

        Buildings Connected                     295    1,009       902              2,206

        Ports Sold                            1,610    1,131     2,056              4,797

        Data & Dedicated Internet Customers   1,089    1,053       422              2,564

        Employees                               314      318       196       18       846

      Through FirstCom's Chilean subsidiaries, FirstCom currently provides
its corporate customers in Santiago with the following broadband communications 
services:                                                                       

/bullet/ high-quality voice and high-speed data communications services on a    
         private line basis, LAN to LAN interconnections, dedicated channels for
     access to local information warehouses (e.g. credit bureaus, etc.),
 remote terminal access, PBX to PBX connections, remote printing
capabilities, local and wide area network design, engineering,
installation, systems' integration and support services;      

/bullet/ domestic and international long distance services, switched and        
         dedicated, in part, through FirstCom's own gateway switch and satellite
       earth station, as well as through interconnections with other Chilean
long distance carriers; and                                   

/bullet/ high-speed Internet access services.                                   

  Through its Peruvian subsidiary, FirstCom currently provides its
corporate customers in Lima and Callao with the following broadband             
communications services:                                                        

/bullet/ high-quality voice and high-speed data communications services on a    
    private line basis, LAN to LAN interconnection and remote terminal
access;                                                       

/bullet/ domestic and international long distance services switched and         
transported through interconnections with Telefonica del Peru;

/bullet/ local voice services switched and transported through Telefonica del   
Peru (service to begin in the second half of 2000); and       

/bullet/ high-speed Internet access services.                                   

   Through its Colombian operations, FirstCom currently provides its
corporate customers in Bogota and Cali with the following broadband             
communications services:                                                        

/bullet/ high-quality voice and high-speed data communications services on a    
    private line basis, LAN to LAN interconnection and remote terminal
access; and                                                   

/bullet/ high-speed Internet access services.                                   

 FirstCom entered the Colombian market in February 1999 with the
acquisition of approximately 76% of Teleductos S.A., now known as FirstCom      
Colombia S.A. ("FirstCom Colombia") and has a presence in Bogota and Cali. In   

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November 1999 FirstCom increased its ownership of FirstCom Colombia to 86%.     

RESULTS OF OPERATIONS (Amounts in US$000)                                       

FOR THE SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999                                                                            

      REVENUES. Consistent with the six months period ended June 30, 1999,
during the six months period ended June 30, 2000, the majority of the Company's 
revenues were derived primarily from its operations in Chile. However, as a     
result of the acquisitions of FirstCom Internet, FirstCom Colombia and the      
completion of the ATM/IP networks in Chile and Peru, long distance revenues     
dropped from 67% of total revenues for the six months ended June 30, 1999 to    
--56% of total revenues for the six months ended June 30, 2000. The Company     
expects revenues to increase over the next few years due to the expansion of its
operations in Peru, Chile and Colombia.                                         

   The Company's revenues were $26,095 for the six months ended June
30, 2000 as compared to $18,086 for the six months ended June 30, 1999. Long    
distance revenues increased from $12,166 for the six months ended June 30,      
1999 to $14,610 for the six months ended June 30, 2000. These revenues were     
generated through the sale of approximately 75.3 million and 53.5 million       
minutes for the six months ending June 30, 2000 and 1999, respectively,         
resulting in an average revenue per minute of approximately $0.19 and $0.23,    
respectively. The increased long distance revenue was driven by the initiation  
of long distance services in Peru. The decrease in the revenue per minute is due
to an increased mix of domestic long distance traffic and decreases in tariffs  
for wholesale long distance traffic. Internet and data service revenue increased
significantly from $5,920 for the six months ended June 30, 1999 to $11,485     
for the six months ended June 30, 2000. This increase was attributable to the   
acquisition of FirstCom Colombia and FirstCom Internet in Chile and the         
initiation of Internet and data services over the Company's ATM/IP network in   
Peru and Chile.                                                                 

The following table details the Company's revenue mix by country:               

SIX MONTHS ENDED          
JUNE 30, 2000     JUNE 30, 1999         
--------------     --------------       
Chile                    56%                80%                                 
Peru                     28%                 2%                                 
Colombia                 16%                18%                                 
---                ---          
100%               100%         
===                ===          

  COST OF REVENUES. For the six months ended June 30, 2000 cost of
revenues related principally to long distance services and included access      
charges paid to local exchange carriers and transmission payments to other      
carriers. Cost of revenues also included payments for rights of way related to  
the Company's fiber optic networks and license royalty payments related to      
telecommunication services in Peru and Colombia.                                

     The Company's cost of revenues was $11,941 for the six months ended
June 30, 2000 as compared to $11,785 for the six months ended June 30, 1999.    
Additionally, the Company's gross margin increased from 35% for the six months  
ended June 30, 1999 to 54% for the six month ended June 30, 2000. The increase  
in gross margin and decrease in cost of revenues is attributable to the         
significant growth in the higher margin data and Internet services.             

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses consist principally of salaries, wages and related      
liabilities, advertising and marketing costs, professional fees related to      
legal, recruiting, accounting, and travel. The Company expects selling,         
general and administrative expenses to increase over time as it continues to    
expand its operations.                                                          

         The Company's selling, general and administrative expenses were $21,445
for the six months ended June 30, 2000 as compared to $10,385 for the six       
months ended June 30, 1999. This increase was primarily attributable to the     
hiring of additional personnel related to the growth of the Peruvian and Chilean
operations, the acquisition of FirstCom Colombia and increased marketing efforts
in Chile and Peru. At June 30, 2000 the Company and its subsidiaries had 846    
employees compared to 551 at June 30, 1999.                                     

        NON CASH COMPENSATION AND CONSULTING. The expense of $115 and $152 for
the six months ended June 30, 2000 and 1999, respectively, represents the       
fair value of options granted to consultants for services provided during such  
periods.                                                                        

        MERGER COSTS. Merger costs of $6,443 for the six months ended June 30,
2000 represents incremental expenses and fees incurred in connection with the   
pending merger transaction between the Company and AT&T Latin America. Included 
in such merger costs are approximately $5,200 of non-cash expense related to the
accelerated vesting of un-vested stock options for certain former employees.    

DEPRECIATION AND AMORTIZATION. The Company depreciates its    

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telecommunications networks and intangible assets on a straight line basis over 
their estimated useful lives. The Company believes that depreciation and        
amortization expense will continue to increase with the expansion of its        
operations.                                                                     

    The Company's depreciation and amortization was $6,261 for the six
months ended June 30, 2000 as compared to $2,703 for the six months ended June  
30, 1999. This increase was primarily attributable to increased investment in   
the Company's telecommunications networks and the placement in service of such  
assets.                                                                         

        INTEREST EXPENSE. The Company currently incurs interest expense on the
outstanding Notes (as defined below), bank debt, promissory notes, and vendor   
financing. Interest expense has been reduced for amounts capitalized related to 
the Company's construction of its fiber optic networks. Interest costs reported 
with respect to the Company's Notes include amortization of (i) deferred        
financing costs and (ii) original issue discount related to detachable warrants.

     The Company's interest expense was $11,731 for the six months ended
June 30, 2000 as compared to $10,720 for the six months ended June 30, 1999. The
increase in interest expense is due to the decrease in capitalized interest.    
During the six months ended June 30, 1999 and June 30, 2000 the company         
capitalized $1,532 and $260, respectively, of interest costs related to the     
Company's fiber optic network.                                                  

        INTEREST INCOME AND OTHER. The Company currently earns interest income
on cash and cash equivalents, restricted cash, and restricted investments.      

     The Company's interest income and other was $502 for the six months
ended June 30, 2000 as compared to $1,367 for the six months ended June 30,     
1999. This decrease was primarily attributable to a reduction in restricted cash
and investments.                                                                

    INCOME TAXES. The Company is subject to federal, state and foreign
income taxes and with the exception of its Colombian operations, has incurred no
liability for such taxes due to net operating losses incurred.                  

         The Company's income tax expense for the six months ended June 30, 2000
was $143. This expense related solely to the Company's operations in Colombia.  

FOR THE THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999                                                                        

        REVENUES. Consistent with the three months period ended June 30, 1999,
during the three months period ended June 30, 2000 the majority of the Company's
revenues were derived primarily from its operations in Chile. However, as a     
result of the acquisitions of FirstCom Internet, FirstCom Colombia and the      
completion of the ATM/IP networks in Chile and Peru, long                       

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distance revenues dropped from 63% of total revenues for the three months ended 
June 30, 1999 to 55% of total revenues for the three months ended June 30, 2000.
The Company expects revenues to increase over the next few years due to the     
expansion of its operations in Peru, Chile and Colombia.                        

     The Company's revenues were $14,346 for the three months ended June
30, 2000 as compared to $9,805 for the three months ended June 30, 1999. Long   
distance revenues increased from $6,141 for the three months ended June 30,     
1999 to $7,960 for the three months ended June 30, 2000. These revenues were    
generated through the sale of approximately 39.5 million and 26.9 million       
minutes for the three months ending June 30, 2000 and 1999, respectively,       
resulting in an average revenue per minute of approximately $0.20 and $0.23,    
respectively. The increased long distance revenue was driven by the initiation  
of long distance services in Peru. The decrease in the revenue per minute is due
to an increased mix of domestic long distance traffic and decreases in tariffs  
for wholesale long distance traffic. Internet and data service revenue increased
significantly from $3,664 for the three months ended June 30, 1999 to $6,386    
for the three months ended June 30, 2000. This increase was attributable to the 
acquisition of FirstCom Colombia and FirstCom Internet in Chile and the         
initiation of Internet and data services over the Company's ATM/IP network in   
Peru and Chile.                                                                 

The following table details the Company's revenue mix by country:               

THREE MONTHS ENDED        
JUNE 30, 2000     JUNE 30, 1999         
--------------    -------------         
Chile                    55%                75%                                 
Peru                     31%                 3%                                 
Colombia                 14%                22%                                 
---                ---          
100%               100%         
===                ===          

    COST OF REVENUES. For the three months ended June 30, 2000 cost of
revenues related principally to long distance services and included access      
charges paid to local exchange carriers and transmission payments to other      
carriers. Cost of revenues also included payments for rights of way related to  
the Company's fiber optic networks and license royalty payments related to      
telecommunication services in Peru and Colombia.                                

      The Company's cost of revenues was $6,632 for the three months ended
June 30, 2000 as compared to $5,757 for the three months ended June 30, 1999.   
Additionally, the Company's gross margin increased from 41% for the three months
ended June 30, 1999 to 54% for the three month ended June 30, 2000. The increase
in gross margin and decrease in cost of revenues is attributable to the         
significant growth in the higher margin data and Internet services.             

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses consist principally of salaries, wages and related      
liabilities, advertising and marketing costs, professional fees related to      
legal, recruiting, accounting, and travel. The Company expects selling,         
general and administrative expenses to increase over time as it continues to    
expand its operations.                                                          

         The Company's selling, general and administrative expenses were $11,390
for the three months ended June 30, 2000 as compared to $6,040 for the three    
months ended June 30, 1999. This increase was primarily attributable to the     
hiring of additional personnel related to the growth of the Peruvian and Chilean
operations, the acquisition of FirstCom Colombia and increased marketing efforts
in Chile and Peru. At June 30, 2000 the Company and its subsidiaries had 846    
employees compared to 551 at June 30, 1999.                                     

      NON CASH COMPENSATION AND CONSULTING. The expense of $58 and $70 for
the three months ended June 30, 2000 and 1999, respectively, represents the     
fair value of options granted to consultants for services provided during such  

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periods.                                                                        

        MERGER COSTS. Merger costs of $306 for the three months ended June 30,
2000 represents incremental expenses and fees incurred in connection with the   
pending merger transaction between the Company and AT&T Latin America.          

DEPRECIATION AND AMORTIZATION. The Company depreciates its    
telecommunications networks and intangible assets on a straight line basis over 
their estimated useful lives. The Company believes that depreciation and        
amortization expense will continue to increase with the expansion of its        
operations.                                                                     

      The Company's depreciation and amortization was $3,325 for the three
months ended June 30, 2000 as compared to $1,811 for the three months ended June
30, 1999. This increase was primarily attributable to increased investment in   
the Company's telecommunications networks and the placement in service of such  
assets.                                                                         

        INTEREST EXPENSE. The Company currently incurs interest expense on the
outstanding Notes (as defined below), bank debt, promissory notes, and vendor   
financing. Interest expense has been reduced for amounts capitalized related to 
the Company's construction of its fiber optic networks. Interest costs reported 
with respect to the Company's Notes include amortization of (i) deferred        
financing costs and (ii) original issue discount related to detachable warrants.

      The Company's interest expense was $5,877 for the three months ended
June 30, 2000 as compared to $6,216 for the three months ended June 30, 1999.   
During the three months ended June 30, 2000 the company capitalized             
$260 of interest costs related to the Company's fiber optic network.            

        INTEREST INCOME AND OTHER. The Company currently earns interest income
on cash and cash equivalents, restricted cash, and restricted investments.      

The Company's interest income was $110 for the three months   
ended June 30, 2000 as compared to $566 for the three months ended June 30,     
1999. This decrease was primarily attributable to a reduction in restricted cash
and investments.                                                                

    INCOME TAXES. The Company is subject to federal, state and foreign
income taxes and with the exception of its Colombian operations, has incurred no
liability for such taxes due to net operating losses incurred.                  

      The Company's income tax expense for the three months ended June 30,
2000 was $126. This expense related to the Company's operations in Colombia.    

LIQUIDITY AND CAPITAL RESOURCES                                                 

      On October 27, 1997, the Company consummated a private offering (the
"Senior Note Offering") of 150,000 Units (the "Units") consisting of $150,000   
aggregate principal amount of 14% Notes due October 27, 2007 (the "Notes") and  
5,250,000 Unit Warrants to purchase 5,250,000 shares of common stock of the     
Company at an exercise price of $4.40 per share. In addition, UBS Securities    
LLC, the initial purchaser of the Units in the Senior Note Offering, was granted
2,250,000 warrants to acquire 2,250,000 shares of common stock of the Company at
an exercise price of $4.40 per share.                                           

       Approximately $57,000 of the proceeds were invested in an escrow fund
(referred to herein on the Company's balance sheet as "Restricted Investments") 
for payment of interest on the Notes through October 27, 2000. Under certain    
circumstances, Restricted Investments may be used for repayment of principal of 
the Notes. Restricted investments were reduced by $10,500 on each of April 27   
and October 27 during 1999 and $10,500 on April 27, 2000 to pay interest on the 
Notes. Approximately $62,000 of the proceeds were deposited in an account       
controlled by a trustee (referred to on the Company's balance sheet as          
"Restricted Cash") for payment of Permitted Expenditures, as defined in the     
Indenture Agreement between the Company and State Street Bank, as Trustee (the  
"Indenture"). As of June 30, 2000 the Company had invested approximately $62,000
of the Restricted Cash into                                                     

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its telecommunications networks and operations in Peru, Chile and Colombia.     

       The ability of the Company to make scheduled payments with respect to
its indebtedness, including interest on the Notes after October 27, 2000, will  
depend upon, among other things, (i) its ability to implement its business plan,
and to expand its operations and to successfully develop its customer base in   
its target markets, (ii) the ability of the Company's subsidiaries to remit cash
to the Company in a timely manner and (iii) the future operating performance of 
the Company and its subsidiaries. Each of these factors is, to a large extent,  
subject to economic, financial, competitive, regulatory and other factors, many 
of which are beyond the Company's control. The Company expects that it will     
continue to generate cash losses for the foreseeable future. The Company has    
deposited cash in escrow funds representing interest payments with respect to   
the Notes through October 2000. However, no assurance can be given that the     
Company will be successful in developing and maintaining a level of cash flow   
from operations sufficient to permit it to pay the principal of, and the        
interest on the Notes after such time, or with respect to its other             
indebtedness. If the Company is unable to generate sufficient cash flow from    
operations to service its indebtedness, including the Notes, it may have to     
modify its growth plans, restructure or refinance its indebtedness or seek      
additional capital. There can be no assurance that (i) any of these strategies  
can be effected on satisfactory terms, if at all, in light of the Company's high
leverage or (ii) any such strategy would yield sufficient proceeds to service   
the Company's indebtedness, including the Notes. Any failure by the Company to  
satisfy its obligations with respect to the Senior Notes at maturity or prior   
thereto would constitute a default under the indenture and could cause a default
under other agreements governing current or future indebtedness of the Company. 

    On July 28, 2000 the Company commenced a cash tender offer for the
outstanding Notes and solicitation of consents for amendments to the Notes and  
the related indenture. Notes validly tendered and accepted for purchase will be 
purchased at a price resulting from a yield equal to 50 basis points plus the   
yield of the 5.750% U.S. Treasury Note due October 31, 2002 as of 2:00 p.m., New
York time, on the second business day immediately preceding the expiration date 
of the tender offer, plus accrued and unpaid interest to, but not including the 
date of payment, less a consent payment of $40 per $1,000 principal amount of   
the Notes.                                                                      

   FirstCom has received duly executed and unrevoked consents to the
proposed amendments to the indenture under which the Notes were issued from     
holders of a majority of the principal amount at maturity of the Notes          
outstanding. As of the expiration of the consent period at 11:59 p.m., New York 
City time, on August 10, 2000, $150,000,000 in aggregate principal amount of the
Notes had been tendered and consents had been delivered, representing 100% of   
the total Notes outstanding.                                                    

        As described in FirstCom's Offer to Purchase and Consent Solicitation,
FirstCom solicited consents to permit the Merger and to make certain amendments 
to the indenture under which the Notes were issued, including the elimination of
substantially all of the restrictive covenants and certain of the events of     
default. The closing of the tender offer and consent solicitation by FirstCom is
conditioned on, among other things, the receipt of valid tenders, with consents,
of at least a majority in aggregate principal amount of the outstanding Notes.  
The tender offer and consent solicitation are also subject to the completion of 
the Merger. The time at which the tender offer expires is 11:59 p.m., New York  
City time, on August 24, 2000, unless extended.                                 

        Substantially all of the Company's assets are held by its subsidiaries
and substantially all of the Company's sales are derived from operations of such
subsidiaries. Future acquisitions may be made through present or future         
subsidiaries of the Company. Accordingly, the Company's ability to pay the      
principal of, and interest and liquidated damages, if any, when due, on the     
Notes is dependent upon the earnings of its subsidiaries and the distribution of
sufficient funds from its subsidiaries. The Company's subsidiaries will have no 
obligation, contingent or otherwise, to make funds available to the Company for 
payment of the principal of, and interest and liquidated damages on, if any, the
Notes. In addition, the ability of the Company's subsidiaries to make such funds
available to the Company may be restricted by the terms of such subsidiaries'   
current and future indebtedness, the availability of such funds and the         
applicable laws of the jurisdictions under which such subsidiaries are          
organized. Furthermore, the Company's subsidiaries will be permitted under the  

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terms of the Indenture to incur indebtedness that may severely restrict or      
prohibit the making of distributions, the payment of dividends or the making of 
loans by such subsidiaries to the Company. The failure of the Company's         
subsidiaries to pay dividends or otherwise make funds available to the Company  
could have a material adverse effect upon the Company's ability to satisfy its  
debt service requirements including its ability to make payments on the Notes.  

 On November 11, 1998 a subsidiary of the Company entered into a
financing arrangement (the "First Vendor Financing") with one of the Company's  
significant equipment vendors. The terms of the First Vendor Financing are as   
follows: (i) maximum amount available $10,000 (ii) interest rate of LIBOR plus  
5.5%, (iii) the Company may draw on the facility until December 31, 2000, (iv)  
draws under the facility shall be repaid in 20 consecutive quarterly principal  
and interest payments, (v) the First Vendor Financing is collateralized by the  
equipment being financed. On July 28, 1999 the Company increased the maximum    
amount available under the First Vendor Financing from $10,000 to $29,500. As of
June 30, 2000 the Company had approximately $7,100 outstanding under the First  
Vendor Financing.                                                               

 On December 24, 1998 a subsidiary of the Company entered into a
financing arrangement (the "Second Vendor Financing") with another one of the   
Company's significant equipment vendors. The terms of the Second Vendor         
Financing are as follows: (i) maximum amount available $10,000 (ii) interest    
rate of Libor plus 4%, (iii) the Company may draw on the facility until December
31, 2000, (iv) draws under the facility shall be repaid in 20 consecutive       
quarterly principal and interest payments beginning on March 31, 2001, (v)      
interest only quarterly payments shall be made for each draw from the respective
date of funding through December 31, 2000, (vi) the Second Vendor Financing will
be collateralized by the equipment being financed. As of June 30, 2000 the      
Company had no amounts outstanding under the Second Vendor Financing.           

On June 30, 1999, the Company issued 1,250,000 shares of 15%  
Convertible Redeemable Preferred Stock (the "Preferred Stock") for an aggregate 
amount of $10,000. The Preferred Stock is convertible at any time at the option 
of the holders into the Company's common stock on a one for one basis, subject  
to adjustment. The 15% dividend is payable in kind until June 30, 2001, after   
which it will be payable in cash. Beginning June 30, 2001, if the closing price 
of the Company's common stock ,as quoted on the NASDAQ Stock Market, exceeds $15
per share for 30 consecutive trading days, the Preferred Stock is automatically 
converted into the Company's common stock. The holders of the Preferred Stock   
also have certain preemptive, redemption, anti-dilution, tag along and          
registration rights.                                                            

   FirstCom and AT&T Latin America have been in discussions with the
holders of the Preferred Stock regarding the possible conversion of the         
outstanding shares of Preferred Stock into FirstCom common shares shortly before
the Merger. Those discussions contemplate that, in connection with this         
conversion, FirstCom will accelerate all future paid-in-kind dividends on the   
Preferred Stock.                                                                

On August 4, 1999, the Company converted $5,000 of outstanding
promissory notes into 500,000 shares of the Company's common stock.             

 During December 1999, one of the Company's Chilean subsidiaries
obtained a $1,400 working capital revolving credit facility (the "Working       
Capital Facility") from a local bank. The Working Capital Facility is           
denominated in UF's ( a published inflation adjusted unit used in financing     
transactions in Chile)and bears interest at the prevailing market rates at the  
time of each draw down. As of December 31, 1999, there were no amounts          
outstanding under the Working Capital Facility.                                 

         As a result of the October 1999 sale of 800,000 shares of the Company's
common stock to Patricio E. Northland during January 2000 the Company received  
related proceeds of approximately $8,600.                                       

        During February 2000, certain subsidiaries of the Company entered into
a term credit facility (the "Term Facility") with a bank. The significant       
provisions of the Term Facility are as follows: (i) maximum amount available    

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$10,000, (ii) annual interest rate of Libor plus 6% or Prime plus 5%, (iii)     
principal maturity date of January 2, 2001, (iii) interest payments on the      
outstanding principal balance are due quarterly beginning June 30, 2000, (iv)   
the Term Facility is collateralized by certain telecommunications equipment and 
(v) mandatory prepayment provisions exist upon the occurrence of certain events 
including a change of control, as defined in the Indenture. As of June 30,      
2000, the Company had $10,000 outstanding under the Term Facility.              

    Assuming completion of the Merger, FirstCom and AT&T Latin America
estimate that they will have cash requirements of approximately $725 million    
during 2000 and the first half of 2001. AT&T Latin America and FirstCom had     
spent and aggregate of $40 million of that amount through March 31, 2000. It    
expects to use the remaining amount to develop and expand its communications    
networks and services and fund working capital needs, operating losses and debt 
service obligations. AT&T Latin America expects that its funding needs to       
implement its growth strategy will continue at a somewhat higher level from     
mid-2001 through the end of 2002. As of March 31, 2000, AT&T Latin America had  
not made any contractual commitments for capital expenditures and had           
approximately $1.7 million in debt service obligations (including obligations   
under capital leases)for the remainder of 2000 for debt outstanding at that     
date. AT&T Latin America expects that capital expenditures and debt service     
obligations will increase in the future in connection with the cash requirements
described above.                                                                

        To fund its cash requirements following the Merger, AT&T Latin America
needs to raise funds in addition to cash on hand, amounts available under a $100
million credit facility provided by AT&T Corp. and committed vendor financing.  
AT&T Latin America expects to raise the additional amounts needed principally   
through new vendor financing and an equity offering. On August 8, 2000 AT&T     
Latin America filed a registration statement with the Securities and Exchange   
Commission relating to a proposed public offering of 35 million shares of its   
Class A common stock. The offering is subject to the completion of the Merger.  
It may also issue debt at some point after the merger, depending on prevailing  
market conditions. AT&T Latin America is not sure it will be able to raise      
sufficient funds on acceptable terms or at all. Inability to raise sufficient   
funds could affect its ability to meet its debt service and other obligations   
and would affect its ability to carry out its growth strategy. If AT&T Latin    
America does not obtain additional financing by the end of the third quarter of 
2000, it will have to postpone most of its capital expenditures until financing 
is obtained. This would detract from its time to market and its ability to      
pursue its growth strategy.                                                     

   AT&T Latin America's cash needs in the next several years will be
affected by several factors. Among them are:                                    

   -        the amount of cash generated by its business operations;
      -        whether it changes its plans for building and expanding its
networks; and                               
         -        whether it uses cash, issues common stock or increase its debt
               to complete acquisitions and ventures, such as the possible
                 collaboration with AT&T Global Network Services, beyond those
currently anticipated.                      

      As part of its business strategy, the Company intends to continue to
evaluate potential acquisitions, joint ventures and strategic alliances in      
companies that own existing networks or companies that provide services that    
complement the Company's existing businesses. The Company continues to consider 
potential acquisitions from time to time. New sources of capital such as credit 
facilities and other borrowings, and additional debt and equity issuances, will 
be necessary to fund any material acquisitions and similar strategic            
investments.                                                                    

    A summary of the Company's value of common stock issued and common
stock and common stock equivalents outstanding as of June 30, 2000 and the pro  
forma effect on the Company's equity capitalization upon the exercise of all    
common stock equivalents outstanding at June 30, 2000 is as follows:            

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                                                        [Enlarge/Download Table]

                                                             OPTIONS HELD BY                       OTHER          INCREMENTAL 
                                             ACTUAL AT       MANAGEMENT AND     SENIOR NOTE     OPTIONS AND            AS     
                                           JUNE 30, 2000      DIRECTORS (4)     WARRANTS (5)    WARRANTS (6)      ADJUSTED (7)
                                      ----------------------------------------------------------------------------------------
                                                                                                                              
Shares of Common Stock                        31,762,195         8,229,166         222,000         600,000         9,051,166  
Value of Common Stock                                                                                                         
  Issued (1) (2)                                                                                                              
  Par Value                                      $31,708            $8,229            $222            $600            $9,051  
  Additional Paid in Capital                 $91,556,538       $54,077,765        $976,578      $1,471,400       $56,525,743  
                                      ----------------------------------------------------------------------------------------
                                             $91,588,246       $54,085,994        $976,800      $1,472,000       $56,534,794  
                                      ========================================================================================
Per Share (3)                                      $2.88             $6.57           $4.40           $2.45             $6.25  

<FN>                                                                                                                          
(1)  The closing price of the Common Stock on June 30, 2000 was $15.063. The                                                  
     exercise of stock options and warrants as shown above assumes full vesting                                               
     of all stock options and warrants.                                                                                       

(2)  Value of Common Stock represents the proceeds from the Company's issuance                                                
     of Common Stock and Common Stock equivalents, and is comprised of par value                                              
     and additional paid in capital, as stated in the Company's consolidated                                                  
     historical financial statements.                                                                                         

(3)  Represents the amount in (2) per share of Common Stock.                                                                  

(4)  Represents the increase to the Company's value of Common Stock issued upon                                               
     the exercise of all stock options (vested and not vested) held by the                                                    
     Company's management and directors and the Company's receipt of the                                                      
     exercise price as of June 30, 2000.                                                                                      

(5)  Represents the increase to the Company's value of Common Stock issued upon                                               
     the exercise of all warrants (vested and not vested) that were issued in                                                 
     connection with the Notes and are outstanding and the Company's receipt of                                               
     the exercise price as of June 30, 2000.                                                                                  

(6)  Represents the increase to the Company's value of Common Stock issued upon                                               
     the exercise of all other stock options and warrants (vested and not                                                     
     vested) outstanding and the Company's receipt of the exercise price as of                                                
     June 30, 2000.                                                                                                           

(7)  Represents the combined increase to the Company's value of Common Stock                                                  
     issued of (4), (5) and (6) above.                                                                                        
</FN>                                                                                                                         

         Net cash used in operating activities for the six months ended June 30,
2000 was $22,263, compared to $14,520 for the same period in 1999. This amount  
represented cash used to fund the Company's net loss for the period.            

         Net cash used in investing activities for the six months ended June 30,
2000 was $29,126, compared to $1,893 for the same period in 1999. This amount   
primarily represented the Company's continued build-out of its fiber-optic      
network as it connects new, offset by the use of restricted cash to fund such   
items. The growth of the Company's fiber networks was evidenced as route        
kilometers and buildings connected increased from approximately 1,757 km and    
1,091 buildings as of December 31, 1999 to approximately 2,666 km and 2,206     
buildings as of June 30, 2000.                                                  

         Net cash provided by financing activities for the six months ended June
30, 2000 was $55,181, compared to $21,506 for the same period in 1999. The      
Company received significant funding during this period from (a) the exercise of
stock options and warrants and (b) bank and vendor financing and (c) the        
repayment of a shareholder loan.                                                

IMPACT OF YEAR 2000                                                             

         In the prior year, the Company discussed the nature and progress of its
plans to become Year 2000 ready. In late 1999, the Company completed its        
remediation and testing of systems. As a result of those planning and           
implementation efforts, the Company experienced no significant disruptions in   
mission critical information technology and non-information technology systems  
and believes those systems successfully responded to the Year 2000 date change. 

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The Company expensed approximately $63 during 1999 in connection with           
remediating its systems. The Company is not aware of any material problems      
resulting from Year 2000 issues, either with its products, its internal systems,
or the products and services of third parties. The Company will continue to     
monitor its mission critical computer applications and those of its suppliers   
and vendors throughout the year.                                                

INFLATION AND EXCHANGE RATES                                                    

        Inflation and exchange rate variations may have substantial effects on
the Company's results of operations and financial condition. Generally, the     
effects of inflation in many Latin American countries, including Chile, Peru and
Colombia, have been offset in part by a devaluation of the local countries'     
currencies relative to the U.S. dollar. Nevertheless, the devaluation of each   
country's currency may have an adverse effect on the Company.                   

       A substantial portion of the Company's purchases of capital equipment
and interest on the Notes is payable in U.S. dollars. To date, the Company has  
not had significant foreign currency exposure with third parties and generally  
intends to be paid for its services in U.S. dollars or in local currencies with 
a pricing adjustment that is structured to protect the Company against the risk 
of fluctuations in exchange rates. As a result, the Company has not entered into
foreign currency hedging transactions. In the future, if third party foreign    
currency exposure increases, the Company may enter into hedging transactions in 
order to mitigate any related financial exposure. However, a portion of sales to
customers of the Company will be denominated in local currencies, and           
substantial or continued devaluation in such currencies relative to the U.S.    
dollar could have a negative effect on the ability of customers of the Company  
to absorb the costs of devaluation. This could result in the Company's customers
seeking to renegotiate their contracts with the Company or, failing satisfactory
renegotiation, defaulting on such contracts.                                    

In addition, from time to time, Latin American countries have 
experienced shortages in foreign currency reserves and restrictions on the      
ability to expatriate local earnings and convert local currencies into U.S.     
dollars. Also, currency devaluations in one country may have adverse effects in 
another country, as in late 1994 and 1995, when several Latin American countries
were adversely impacted by the devaluation of the Mexican peso. Any devaluation 
of local currencies in the country where the Company operates, or restrictions  
on the expatriation of earnings or capital from such countries, could have a    
material adverse effect on the business, results of operations and financial    
condition of the Company.                                                       

NET OPERATING LOSS CARRYFORWARDS                                                

At December 31, 1999 the Company has net tax operating loss   
carryforwards of approximately $85,000 for U.S. income tax purposes and         
approximately $46,900 for foreign income tax purposes. The U.S. carryforwards   
are available to offset future taxable income, if any, and expire for U.S.      
income tax purposes in the years 2007 through 2019, subject to limitation under 
Section 382 of the Internal Revenue Code. The foreign net operating loss        
carryforwards related (1) to Peru, of $15,300 expire in the years 2000 through  
2003 and (2) to Chile, of $31,500, do not expire.                               

EFFECTS OF NEW ACCOUNTING STANDARDS                                             

         In June 1998, the Financial Accounting Standards Board issued Statement
of Accounting Standards No. 133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND      
HEDGING ACTIVITIES (the "Statement"). The Company has adopted the Statement     
effective January 1, 2000. The Statement requires the recognition of all        
derivatives on the Company's consolidated balance sheet at fair value. The      
Company does not anticipate that the adoption of this Statement will have a     
significant effect on its results of operations or financial position.          

18

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 PART II

 OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K                                        

(a) The exhibits listed below are filed as part of this Report.                 

EXHIBIT                        DESCRIPTION                            
-------                        -----------                            
    27                            Financial Data Schedule for the six months
           ended June 30, 2000

(b) Reports on Form 8-K                                                         

None                                                                    

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 be the        
undersigned, thereunto duly authorized.                                         

FIRSTCOM CORPORATION                                                            

/s/ Patricio E. Northland                                       August 10, 2000 
---------------------------                                     --------------- 
Patricio E. Northland                                       Date        
Chairman of the Board,                                                  
President, and Chief Executive Officer                                  
(Principal Executive Officer)                                           

/s/ Patricio E. Northland                                       August 10, 2000 
---------------------------                                     --------------- 
Patricio E. Northland                                       Date        
Acting Chief Financial Officer                                          

19

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 EXHIBIT INDEX

EXHIBIT                        DESCRIPTION                            
-------                        -----------                            
    27                            Financial Data Schedule for the six months
           ended June 30, 2000

20

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘10-Q’ Filing	Date	First	Last	Other Filings

	10/27/07	13
	10/31/02	14
	6/30/01	15
	3/31/01	15
	1/2/01	7	16
	12/31/00	15
	10/27/00	13	14
Corrected on:	9/7/00
Changed as of:	9/6/00
	8/28/00	8
	8/24/00	14
Filed on:	8/14/00
	8/10/00	14	19
	8/8/00	16
	8/4/00	1
	7/28/00	14		425, DEFM14A
	7/27/00	8		425
For Period End:	6/30/00	1	20	425
	4/27/00	13
	3/31/00	16		10-Q
	1/1/00	18
	12/31/99	2	18	10-K405, 10-K405/A
	11/1/99	8		8-K
	8/4/99	15
	7/28/99	15		8-K, S-3
	6/30/99	2	15	10QSB
	12/24/98	15
	11/11/98	15
	10/27/97	13
				List all Filings

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Filing Submission 0000950170-00-001356 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Firstcom Corp – ‘10-Q’ for 6/30/00

On: Monday, 8/14/00, at 8:16pm ET · For: 6/30/00 · Accession #: 950170-0-1356 · File #: 1-14017 · Correction: This Filing’s “Filed as of” Date was Corrected and “Changed as of” 9/6/00 by the SEC on 9/7/00. ®

Previous ‘10-Q’: ‘10-Q’ on 5/15/00 for 3/31/00 · Latest ‘10-Q’: This Filing

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Dates Referenced Herein and Documents Incorporated by Reference

On: Monday, 8/14/00, at 8:16pm ET · For: 6/30/00 · Accession #: 950170-0-1356 · File #: 1-14017 · Correction: This Filing’s “Filed as of” Date was Corrected and “Changed as of” 9/6/00 by the SEC on 9/7/00. `®`

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