Results of Operations sections below. 
Operating Expenses  Total operating expenses increased to $88.1 million for the year ended
December 31, 2000 from $68.3 million for the year ended December 31, 1999 and from $34.5
million for the year ended December 31, 1998. The increase from 1999 to 2000 can be broken down
by segment as follows: (1) a $3.5 million increase in Network Services Segment operating costs due to growth in the size of the network
operations; (2) a $15.2 million increase in Software Services Segment due to write down of intangibles of $11.2 million and investment in
personnel and re s o u rces; and (3) a $1.1 million increase in Corporate Services Segment operating costs due to the expended operations. The
i n c rease from 1998 to 1999 can be broken down by segment as follows: (1) a $13.0 million increase in Network Services Segment operating costs,
(2) the addition of $19.6 million of Software Solutions Segment operating costs, and (3) a $1.2 million increase in Corporate Services Segment
operating costs. Operating expenses for the years ended December 31, 2000 and 1999 are discussed more fully in the Segment Results of
Operations sections below. 
Operating Loss  The Company generated an operating loss of $35.4 million for the year ended December 31, 2000 compared to $26.8 million
for the year ended December 31, 1999 and $22.6 million for the year ended December 31, 1998. The increased operating loss from 1999 to 2000
is due to the net effect of three factors: (1) a $6.8 million decrease in the operating loss from the Company’s Network Services Segment; (2) a
$14.3 million increase in the operating loss from the Company’s Software Solutions Segment; and (3) a $1.1 million increase in the operating loss
f rom the Company’s Corporate Services Segment. The increased operating loss from 1998 to 1999 is due to the net effect of three factors: (1) a
$1.9 million decrease in operating losses from the Company’s Network Services Segment; (2) the addition of $4.8 million in operating losses fro m
the Company’s Software Solutions Segment; and (3) a $1.3 million increase in operating losses from the Company’s Corporate Services Segment.
1 5
Annual Consolidated Revenues
27% increase for full year 
2000 over 1999
1995    1996    1997    1998    1999    2000
5 2 . 7
4 1 . 5
1 1 . 9
5 . 3
1 . 30 . 1